Artificial intelligence in the banking industry refers to the transformation of the banking process with AI technologies. It helps in making banking operations and function faster, transfer more quickly, safer, and enhance the back-end operations. Moreover, artificial intelligence in baking bolsters its growth by improving front, middle, and back-office functions in banking.
The global artificial intelligence in the BFSI market has the potential to grow with USD 200.52 billion with bolstering CAGR in the forecast period from 2020-2027. The rising adoption of advancement in technology, prevalence of the internet, emerging smartphone usage, coupled with rising demand for virtual assistants, and cloud-based applications are driving the market demand for artificial intelligence in the BFSI market.
The artificial intelligence in the BFSI report provides in-depth research on the leading players in the market interval by simplifying product descriptions, business summaries, and business strategies. It also gives the quantity of production, the artificial intelligence in BFSI’s future needs, the raw materials needed, and the financial health of the organization.
Also, artificial intelligence is an essential source of business strategic insight data. It provides an industry overview, including growth analysis and historical and future cost, revenue, demand, and supply data. The research analyst offers a detailed description of the study of the value chain and its distributors.
Moreover, the use of various AI technologies (such as deep learning, natural language processing, chatbots, and automated trading advisors) in financial products and services are some of the factors driving the market growth. Also, the advanced artificial intelligence technology in the BFSI industry provides a proactive customer experience by automating back-end processes to reduce human errors, reduce fraud detection, and mitigate risks, thereby driving the market growth.
Furthermore, artificial intelligence is becoming more and more entrenched in the business world and represents a profound transformation of the enterprise. Early adopters demonstrated high-impact business results in fraud detection, manufacturing performance optimization, preventive maintenance, and recommendation engines. The main business goal of adopting AI in the BFSI department is to provide proactive and personal customer support.
Artificial intelligence in every industry is adopted only due to changing technology scenarios around the world. The adoption of smartphone and growing prevalence of the internet has enhanced the functions of every sector. Therefore, artificial intelligence in the banking sector has fueled the market growth by improving its day to day operations and providing real-time results to the customer through the internet and saves time.
The large amount of data generated in the banking sector every day fuels the demand for the adoption of artificial intelligence in the banking industry. Managing a large amount of raw data is a challenging and confusing task for any industry. Thus, with the help of advanced technology like cloud, IoT, coupled with AI tools adopted by the banking industry, reduces the burden of work and smoothen the function of banks.
Based on the offerings, global artificial intelligence in the BFSI market classified into Hardware, Software, and Services. The software segment accounts for the major share in the global artificial intelligence in the BFSI market. Software products have benefited the financial industry greatly, such as tracking transactions, verifying data, generating reports, and extracting information related to operations; the software sector has the most significant revenue. Also, software tools greatly simplify security and know your customer (KYC) processes for verification, thus becoming the leading artificial intelligence in BFSI market trends.
Based on the solutions, the global artificial intelligence in the BFSI market segmented into Chatbots, Fraud Detection & Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics & Prediction, and Others. The chatbot segment generated the most significant revenue in recent years, and it is expected that it would remain at the same level during the artificial intelligence period of the BFSI market forecast. Chatbots provide banks and other financial institutions with the ability to quickly assist common customer queries, enhance the onboarding process, and increase sales efficiency. Besides, it can save costs, significantly reduce customer acquisition costs, and collect real-time feedback from customers on the market.
Based on the technology, the global artificial intelligence in the BFSI market categorized into Deep Learning, Querying Method, Natural Language Processing, and Context-Aware Processing. The natural language processing segment accounts for the largest share in the global artificial intelligence in the BFSI market. Natural language processing helps in understanding the speech of humans and thus able to process the caller type. Also, it helps in structuring the data in the groups to enhance the operation and function of banking. Moreover, increasing the adoption of technology and replacing traditional banking methods with digital banking is fueling the market share of global artificial intelligence in the BFSI market.
Based on geography, the global artificial intelligence in the BFSI market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America has the most extensive artificial intelligence in the BFSI market share and expected to maintain its dominant position during the forecast period. Global artificial intelligence in the BFSI market continues to grow in North America. It is due to countries prioritizing technological advancement and increasing investment in artificial intelligence technology to improve customer service and expand their business revenue.
Companies such as Intel, NVIDIA, Samsung Electronics, Xilinx, Micron Technology, IBM, Microsoft, Google Inc, Amazon Web Services, Facebook, Baidu, Oracle, Salesforce, SAS, SAP SE, General Electric, Cisco, Rockwell Automation, Siemens, Graphcore and other key players in the global artificial intelligence in BFSI market.
BFSI, whose complete form is Banking, financial services, and insurance, is an industry term of companies that provide a range of products or services, including retail, banking, investments, etc.
AI analyzes the data in real-time by enabling advanced financial models. It also detects and notifies fraudulent transactions, which can immediately stop.
Risk management, Fraud detection, management and prevention, Credit decisions, financial advisory services, Trading, Managing finances/personalized banking, Preventing cyberattacks are typical examples of AI in the BFSI sector.
The global Artificial Intelligence in the BFSI market value is estimated to be USD 200.52 billion by 2027.
Artificial Intelligence in the BFSI market is rising globally at a Compound Annual Growth Rate of 35.7% during 2021–2027.
AI technologies applications in financial products and services, reduced human errors, fraud detection combined with Artificial Intelligence in BFSI will drive the market globally.
By Technology, the global Artificial Intelligence in the BFSI market is classified the Deep Learning, Querying Method, Natural Language Processing, and Context-Aware.