AI In Banking Global Market Report 2024

Artificial intelligence (AI) applications within the banking sector involve leveraging advanced technologies to analyze vast datasets, enabling banks to predict current market trends in currencies and equities. Through AI in financial services, banks gain the capability to process substantial amounts of data, facilitating informed forecasts regarding market movements.

AI's primary components within the banking sector encompass both solutions and services. Solutions involve the interconnection of bank branches, granting users access to diverse financial services and the ability to manage accounts globally, eliminating the need for physical branch visits. These technologies encompass machine learning, deep learning, natural language processing (NLP), computer vision, and other applicable tools tailored for small to medium-sized banks as well as large international institutions. AI's application in banking extends to risk management compliance, security protocols, customer service enhancements, back-office operations optimization, financial advisory services, and various other relevant applications.

The AI in banking software market research report is one of a series of new reports from The Business Research Company that provides AI in banking software market statistics, including AI in banking software industry global market size, regional shares, competitors with a AI in banking software market share, detailed AI in banking software market segments, market trends and opportunities, and any further data you may need to thrive in the AI in banking software industry. This AI in banking software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The ai in banking market size has grown exponentially in recent years. It will grow from $9 billion in 2023 to $11.93 billion in 2024 at a compound annual growth rate (CAGR) of 32.5%. The growth observed in the historical period can be attributed to the proliferation of data in banking, the focus on fraud detection and prevention, efforts in enhancing customer service, cost reduction through automation, and the influence of competitive pressures in the industry.

The ai in banking market size is expected to see exponential growth in the next few years. It will grow to $37.15 billion in 2028 at a compound annual growth rate (CAGR) of 32.8%. The anticipated growth in the forecast period can be attributed to the expansion of AI in credit scoring, the implementation of chatbots for multichannel support, AI-driven wealth management solutions, open banking initiatives, and the use of explainable AI for transparency in decision-making processes. Major trends expected in the forecast period include the adoption of voice and chatbot interfaces for customer interaction, the use of predictive analytics for personalized banking services, regulatory compliance through AI solutions, blockchain integration for enhanced security and transparency, and the rise of robo-advisors in wealth management.

The surge in the popularity of mobile banking services is anticipated to significantly fuel the expansion of the AI in banking market in the coming years. Mobile banking, a service provided by financial institutions, empowers customers to conduct financial transactions remotely via smartphones or tablets. Accessing financial accounts and executing transactions at any time and from any location is made possible through mobile devices and dedicated banking applications. The escalating demand for mobile banking services is a driving force behind the integration of AI in banking operations, a trend projected to persist. Notably, data from March 2021, sourced from ACI Worldwide Inc., a US-based payment systems company, revealed a remarkable increase in mobile wallet transactions-from 102.7 billion in 2020 to a projected 2,582.8 billion by 2025. This burgeoning demand for mobile banking services stands as a key driver propelling the continued growth of the AI in banking market.

The surge in banks' investments in AI is anticipated to drive the expansion of AI within the banking sector. This strategic allocation of financial resources involves deploying artificial intelligence technologies, including machine learning, data analytics, and automation, aimed at optimizing operational efficiency, elevating customer service standards, and refining decision-making processes. The integration of AI in banking offers manifold benefits, from enhancing customer service through chatbots and task automation to bolstering fraud detection, investment optimization, and predictive market trend analysis. Consequently, this leads to heightened operational efficiency and superior risk management. For example, as per the International Trade Administration in March 2023, the United Kingdom's AI market is poised to reach $9.87 billion in 2023, demonstrating an impressive annual growth rate (CAGR) of 21.3%. The UK's AI market, currently valued at over $21 billion, is projected to soar to surpass $1 trillion by 2035, positioning it as the world's third-largest AI market, trailing only behind the U.S. and China. The UK stands out for its robust AI strategy, backed by substantial government funding, extensive research initiatives, significant venture capital investments in AI startups, and widespread adoption of AI within enterprises. As a result, the escalating investments by banks in AI technologies are a key driving force propelling the growth of AI within the banking sector.

Technological advancements represent a prominent trend gaining traction within the AI in banking market. Companies within this sector are embracing new technologies as a means to maintain their competitive edge. For example, in April 2023, Jordan Ahli Bank, a financial services entity based in Jordan, introduced ahilGPT, an AI system technology. This innovative solution enables customers to efficiently and accurately address inquiries or concerns related to banking and financial services. Through ahilGPT, both bank customers and staff can save considerable time and effort by swiftly obtaining precise responses.

Prominent players within the AI banking market are spearheading the development of cutting-edge products leveraging advanced technologies such as machine learning. Machine learning, a subset of artificial intelligence, employs algorithms to autonomously glean insights and identify patterns from data, enabling software to continuously enhance its performance. A prime illustration of this was witnessed in December 2022 when Nasdaq, a leading US-based stock exchange company, collaborated with Trackinsight, a financial technology firm based in France, to unveil Fundinsight. This groundbreaking solution caters to financial advisors, offering a complimentary online platform geared towards optimizing fund discovery, research, and portfolio management. Fundinsight empowers financial advisors to effectively compare over 38,000 ETFs and mutual funds, thereby enhancing their services and capabilities.

In January 2023, McKinsey & Company, a prominent US-based management consulting firm, finalized the acquisition of Iguazio for an undisclosed sum. This acquisition is poised to accelerate and expand AI implementations significantly, enabling McKinsey to deliver heightened impact for its clients. With the integration of Iguazio's technology and a team comprising over 70 data and AI professionals, McKinsey aims to enhance its capabilities in this domain. Iguazio, an Israel-based MLOps Platform, specializes in offering real-time and archived data encompassing NoSQL, SQL, time series, and file formats, providing swift, secure, and collaborative access to such data repositories.

Major companies operating in the ai in banking market report are Google LLC, Intel Corporation, Hewlett Packard Enterprise Development LP, Accenture PLC, International Business Machines Corporation., Cisco Systems Inc., Oracle Corporation, SAP SE, Asea Brown Boveri Ltd., Infosys Limited, BSH Hausgerate GmbH, Ally Financial Inc., Fair Isaac Corporation, Harman International Industries, SAS Institute Inc., International Business Machines Corporation, IPsoft Inc., Nuance Communications, Inc., HighRadius Corporation, Vectra AI, Inc., Amazon Web Services Inc., Kreditech Holding SSL GmbH, Kensho Technologies, Inc., Hanson Robotics Limited, RapidMiner Inc., Blue Frog Robotics, BigML Inc., FANUC Corporation , Lingxi Technology Co., Ltd.

Asia-Pacific was the largest region in the AI in banking market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global AI in banking market report during the forecast period. The regions covered in the ai in banking market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the ai in banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The AI in banking market includes revenues earned by entities by maintaining tabs on consumer behavior, keeping track of transactions, and auditing and logging data to different compliance and regulatory systems. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The AI in banking market consists of sales of AI chatbots, facial recognition banking apps, and systems and software for fraud detection. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

AI In Banking Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on ai in banking market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for ai in banking ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ai in banking market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Component: Solution; Service
• 2) By Technology: Machine Learning And Deep Learning; Natural Language Processing (NLP); Computer Vision; Other Technologies
• 3) By Organization Size: Small And Medium Sized Banks; Large Overseas Banks
• 4) By Application: Risk Management Compliance And Security; Customer Service; Back Office or Operations; Financial Advisory; Other Applications
• Companies Mentioned: Google LLC; Intel Corporation; Hewlett Packard Enterprise Development LP; Accenture plc; International Business Machines Corporation.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.