Artificial Intelligence (AI) in BFSI Market Size By Component (Solution [Chatbot, Customer Behavior Analytics, Customer Relationship Management (CRM), Data Analytics & Visualization, Fraud Detection], Service [Professional Service, Managed Service]), By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Application (Back Office/Operation, Customer Service, Financial Advisory, Risk Management, Compliance & Security), By End-Use (Bank, Insurance, Wealth Management), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jun 2020  |  Report ID: GMI2605  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 250   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Artificial Intelligence (AI) in BFSI Market size estimated at USD 5 billion in 2019 and is anticipated to grow at over 40% CAGR between 2020 and 2026.
 

The market is expected to undergo a dynamic transition as advancements in AI technologies, such as NLP and image recognition, are augmenting the demand for AI in BFSI. The rising industry competition has pressurized BFSI enterprises to cut downtime to market for new digital solutions. This has led to a rapid surge in the demand for AI in BFSI technologies.
 

Artificial Intelligence (AI) in BFSI Market
 

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Increasing investments in big data to fuel the artificial intelligence in BFSI market growth

The AI in BFSI market is witnessing rapid growth in the adoption of big data and machine learning algorithms as BFSI institutes are preparing themselves for the next wave of digital disruption. In 2019, the technology witnessed approximately 300% increase in investments across all the businesses compared to 2016. In addition, the integration of AI into the BFSI toolchain across various digital financial services has also accentuated the market growth.
 

The COVID-19 outbreak has impacted BFSI enterprises severely as economic slump coupled with poor stock market sentiments and ongoing liquidity concerns has hampered the market growth. AI technologies have emerged as a viable solution to prevent systemic failures, implement fraud detection & prevention techniques, and help BFSI organizations in reducing operational risks amid the ongoing pandemic.
 

Artificial Intelligence (AI) in BFSI Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 5 billion (2019)
Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 40% 2026 Value Projection: USD 80 Billion (2026)
Pages: 250 Tables, Charts & Figures: 442
Geographies covered (19): U.S., Canada, UK, Germany, France, Spain, Sweden, Switzerland, Australia, China, India, Japan, South Korea, Singapore, Brazil, Mexico, UAE, Israel, South Africa
Segments covered: Component, Technology, Application, End Use, and Region
Companies covered (21): Amazon Web Services (AWS), Inc., Avaamo, Inc., Baidu, Inc., Cape Analytics, LLC., CognitiveScale, Inc., Comply Advantage, Descartes Labs, Inc., Digital Reasoning, Inc., Google LLC, Inbenta Technologies, Inc. Intel Corporation, Interaction LLC, Ipsoft, Inc., Lexalytics, Inc., Microsoft Corporation, NEXT IT, Oracle Corporation, Palantir Technologies, Inc., Salesforce.com, Inc., SAP SE, and ZestFinance, Inc.
Growth Drivers:
  • Exponentially growing digital data
  • Rising investment in AI
  • Increasing partnership between financial institutes and fintech companies
  • Growing need to provide enhanced customer experience
Pitfalls & Challenges:
  • Data safety & security
  • Black box effect

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An increasing need for customer profiling to spur growth in the UK CRM segment

In the UK, the solutions segment accounted for over 85% AI in BFSI market share in 2019. The growing popularity of Customer Relationship Management (CRM) has accentuated the demand for AI in BFSI solutions. BFSI institutes are heavily relying on CRM solutions to gain a better understanding of the customers, product segmentation, marketing campaign management, appropriate targeting, maintenance of long-term profitability, and mutually beneficial relationships with customers.
 

Increasing cases of financial frauds to augment the machine learning segment in Indian AI in BFSI market

India AI in BFSI Market By Technology

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The AI in BFSI machine learning segment held a significant share in the India market with nearly 40% revenues in 2019 due to shifting preference of Indian BFSI enterprises toward machine learning algorithms for a wide range of applications including fraud detection, algorithmic trading, and anti-money laundering. For instance, ICICI Bank has deployed AI-based software automation, which leverages machine learning to check financial frauds in over one million banking transactions per day.
 

Data-driven investment decisions to surge the uptake of AI in BFSI tools for financial advisory in Brazil

Brazil AI in BFSI Market By Application

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In Brazil artificial intelligence in BFSI market, the financial advisory application segment is expected to attain growth rate of 45% through 2026 led by increasing importance of machine learning-based investment algorithms. Through personalization, chatbots, and customer-specific models, these algorithms can provide high-quality guidance on investment decisions. In addition, the increasing usage of AI tools by financial firms to mitigate investment risks has created new market opportunities for the segment.
 

Rising need to automate banking operations will promote the market growth in the U.S. banking sector

In the U.S market, the bank segment dominated around 50% revenue share in 2019 owing to rising awareness on the usage of AI in BFSI tools by banks to increase their operational efficiency and provide better customer experience. The increasing competition from fintech companies will promote banks to opt for more advanced and intelligent solutions & services, creating new growth avenues for the AI in BFSI market.
 

Banks in the U.S. are also focusing on the improvement of their operations through digital solutions and are increasing customer empowerment along with the control of financial matters. They are also exploring new applications in AI, such as financial risk assessment and customer profiling, boosting the regional market growth.
 

An increasing need for digitalization of financial services to spur the industry in Europe

Europe AI in BFSI Market

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Europe held a significant portion of the global artificial intelligence in BFSI market with over 20% share in 2019. The is attributed to increasing digitalization of the financial sector and growing investments in AI. In addition, the growing penetration of AI for the development of novel technologies, such as robotic software automation, is influencing the market growth.
 

European SMEs are increasingly developing bespoke artificial intelligence systems in the BFSI sector to introduce digital technologies. For instance, France has approximately 270 AI start-ups and over USD 325 million raised in funding. This is another major factor contributing to the expanding market presence of AI in BFSI technologies in the region.
 

Launch of innovative solutions with enhanced features to gain a competitive edge

The global AI in BFSI market is characterized by intensified rivalry amongst major players and fueled by strategic partnerships & new product launches. For instance, in July 2018, the State Bank of India and Payjo partnered to create a new platform for AI in BFSI, offering virtual assistance to SBI customers through an intelligent chatbot.
 

The emergence of several SMEs in the market, such as Descartes Lab, Digital Reasoning, and Cape Analytics, has exerted immense strain on established players to continuously launch new products with added functionalities to maintain revenue share and profitability. For instance, in May 2020, Cape Analytics partnered with Amica Mutual Insurance for geospatial property assessment. The new solution is expected to help the company offer stiff competition to major industry rivals.
 

Some of the key players operating in the market are Amazon Web Services (AWS), Inc., Avaamo, Inc., Baidu, Inc., Cape Analytics, LLC., CognitiveScale, Inc., Comply Advantage, Descartes Labs, Inc., Digital Reasoning, Inc., Google LLC, Inbenta Technologies, Inc. Intel Corporation, Interaction LLC, Ipsoft, Inc., Lexalytics, Inc., Microsoft Corporation, NEXT IT, Oracle Corporation, Palantir Technologies, Inc., Salesforce.com, Inc., SAP SE, and ZestFinance, Inc.
 

The artificial intelligence in BFSI market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
 

Market by Component

  • Solution
    • Chatbot
    • Customer Behavior Analytics
    • Customer Relationship Management (CRM)
    • Data Analytics and Visualization
    • Fraud Detection
    • Others
  • Service
    • Professional Services
    • Managed Services

Market by Technology

  • Machine Learning & Deep Learning
  • Natural Language Processing (NLP)
  • Computer Vision
  • Others

Market by Application

  • Back Office/Operations
  • Customer Service
  • Financial Advisory
  • Risk Management, Compliance & Security
  • Others

Market by End-Use

  • Bank
  • Insurance
  • Wealth Management

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Sweden
    • Switzerland
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Singapore
  • Latin America
    • Brazil
    • Mexico
  • Middle East & Africa
    • South Africa
    • UAE
    • Israel
       

Frequently Asked Questions (FAQ) :

The market size of artificial intelligence (AI) in BFSI was estimated at USD 5 billion in 2019.
The industry share of artificial intelligence (AI) in BFSI is anticipated to grow at over 40% CAGR between 2020 and 2026.
According to the analysts at GMI, the financial advisory application segment in the Brazil industry is expected to attain growth rate of 45% through 2026.
In the U.S market, the bank segment dominated around 50% revenue share in 2019 owing to rising awareness on the usage of AI in BFSI tools by banks to increase their operational efficiency and provide better customer experience.
The European market growth is attributed to increasing digitalization of the financial sector and growing investments in AI coupled with growing penetration of artificial intelligence for the development of novel technologies, such as robotic software automation.
Some of the key market players are Amazon Web Services (AWS), Inc., Avaamo, Inc., Baidu, Inc., Cape Analytics, LLC., CognitiveScale, Inc., Comply Advantage, Descartes Labs, Inc., Digital Reasoning, Inc., Google LLC, Inbenta Technologies, Inc. Intel Corporation, Interaction LLC, Ipsoft, Inc., Lexalytics, Inc., Microsoft Corporation, NEXT IT, Oracle Corporation, Palantir Technologies, Inc., Salesforce.com, Inc., SAP SE, and ZestFinance, Inc.

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Premium Report Details

  • Published Date: Jun 2020
  • Pages: 250
  • Tables: 412
  • Charts / Figures: 30
  • Companies covered: 21
  • Countries covered: 19

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