Global AI in banking market to reach $64.03 billion by 2030, growing at a CAGR of 32.6% during 2021-2030 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–Report “AI in Banking Market by Component, Enterprise Size, Applications and Technology: Global Opportunity Analysis and Industry Forecast, 2021-2030” has been added to from ResearchAndMarkets.com offer.
The global AI in banking market size was valued at USD 3.88 billion in 2020 and is projected to reach USD 64.03 billion by 2030, growing at a CAGR of 32.6% 2021 to 2030.
Artificial Intelligence (AI) brings the advantage of digitalization to banks and helps them face competition from FinTech players. For example, according to a joint study conducted by the National Business Research Institute and Narrative Science in 2020, around 32% of banks are already using AI technologies such as predictive analytics, voice recognition and various others, to gain an edge. competitive in the market. .
Moreover, AI also allows banks to manage huge volumes of data at record speed to extract valuable insights and develop a better understanding of customers and their behavior. This enables banks to personalize financial products and services by adding personalized features and intuitive interactions to deliver meaningful customer engagement and build strong relationships with their customers.
Improved data collection technology among banks and financial institutions is having a positive impact on AI in the growth of the banking market. Furthermore, an increase in investment by banks in AI and an increase in customer preferences for personalized financial services are driving the market growth across the globe. However, factors such as higher deployment cost of AI and advanced machine learning and lack of skilled labor are limiting the market growth. On the contrary, the surge in the adoption of modern applications in banks is expected to provide rewarding opportunities for the expansion of AI in the banking market during the forecast period.
By component, the solutions segment is expected to garner a significant AI in banking market share over the forecast period through the management of the massive volume of data generated for meaningful insights and better-informed decisions. Moreover, companies are mainly focusing on creating new opportunities for growth and revenue generation, thus increasing the preference for AI and advanced machine learning algorithms across industries. However, the services segment is expected to experience the highest growth over the forecast period, owing to a surge in demand for cloud-based AI services among end users.
Regionally, the market share of AI in banking was dominated by North America in 2020 owing to an increase in demand for modernization of banks and legacy business systems in the region. Furthermore, the surge in demand for conducting hassle-free and risk-free digital transformation among financial institutions is expected to drive the market growth. However, Asia-Pacific is expected to experience significant growth over the forecast period, owing to an increase in the need to monitor the rising number of breaches and financial crimes.
The report focuses on growth prospects, restraints, and trends in AI in Banking Market Analysis. The study provides – Porter’s Five Forces Analysis to understand the impact of various factors, such as the bargaining power of suppliers, the competitive intensity of competitors, the threat of new entrants, the threat of substitutes and the bargaining power of buyers, on AI in banking market share.
The global AI in banking market share is segmented on the basis of component, company size, application, technology and region. Based on component, the market is divided into solution and service.
According to the size of the company, it is fragmented into large companies and SMEs. Based on application, the market is divided into risk management compliance and security, customer service, back office/operations, financial advisory, and others. Based on technology, it is categorized into machine learning and deep learning, natural language processing (NLP), computer vision, and others. Regionally, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
COVID-19 impact analysis
The COVID-19 outbreak has had a significant impact on the growth of AI in the banking market, mainly due to the increase in digitalization among financial institutes and end users, the demand for AI technology advanced increased to reduce the burden on the banking sector. servers and reduce transaction times with the increase in digital transactions during the pandemic. For example, according to the Bank of England’s Prudential Regulation Authority (PRA) survey in August 2020, around 40% of respondents reported an increase in the importance of AI and data science for businesses. critical financial operations. Additionally, around 35% of banks said AI and data science had a positive impact on the technologies that support remote employee working and their overall security provided for AI projects. Additionally, the pandemic has accelerated the use of AI-powered tools to handle a sudden surge in customer demands. Thus, the number of such developments across the globe is expected to provide lucrative opportunities for market expansion.
Key market segments
Analysis of customer behavior
Customer Relationship Management (CRM)
Data analysis and visualization
By business size
Risk Management Compliance and Security
Machine learning and deep learning
Natural Language Processing (NLP)
The rest of Europe
Rest of Asia-Pacific
Main market players
Amazon Web Services Inc.
Cisco Systems, Inc.
Just Isaac Corporation
Hewlett Packard Enterprise Development LP
International Commercial Machinery Society
SAS Institute Inc.
Main topics covered:
CHAPTER 1 INTRODUCTION
1.1. Description of the report
1.2. Main benefits for stakeholders
1.3. Key market segments
1.4. Research methodology
CHAPTER 2: EXECUTIVE SUMMARY
2.1. Main findings
2.2. CXO point of view
CHAPTER 3: MARKET OVERVIEW
3.1. Definition and scope of the market
3.2. Key Forces Shaping Global AI in the Banking Market
3.3. Case studies
3.3.1. CargoSmart has adopted Tibco’s advanced analytics solution to improve its decision-making capability using real-time analytics
3.3.2. Honeywell International Inc. Adopted Expedien Inc.’s Data and Business Analytics Platform to Increase Productivity, Reduce Costs of Risk, Accelerate Growth and Reduce Risk for Organizations
3.4. Market dynamics
184.108.40.206. Increase in investments by banking companies in AI and machine learning
220.127.116.11. Growing preference for personalized financial services
18.104.22.168. Increased collaboration between financial institutes and the AI and machine learning solutions company
22.214.171.124. Higher deployment cost of AI and machine learning
126.96.36.199. Lack of skilled labor
188.8.131.52. Increased government initiatives and increased investment to leverage AI technology
3.5. Market Evolution/Industry Roadmap
3.6. Impact of Government Regulations on Global AI in the Banking Market
3.7. Impact Analysis of COVID-19 on AI in the Banking Market
3.8. Main future initiatives
3.8.1. Product launches
CHAPTER 4: GLOBAL AI IN BANKING, BY COMPONENT
4.3. A service
CHAPTER 5: GLOBAL AI IN THE BANKING MARKET, BY COMPANY SIZE
5.2. Big business
CHAPTER 6: GLOBAL AI IN THE BANKING MARKET, BY APPLICATION
6.2. Risk Management Compliance and Security
6.3. Customer service
6.4. Back office/Operations
6.5. Financial advice
CHAPTER 7: GLOBAL AI IN BANKING, BY TECHNOLOGY
7.2. Machine learning and deep learning
7.3. Natural Language Processing (NLP)
7.4. computer vision
CHAPTER 8: GLOBAL AI IN THE BANKING MARKET, BY REGION
8.1.1. Market size and forecast, by region
CHAPTER 9: COMPETITIVE LANDSCAPE
9.1. Analysis of the positioning of key players, 2020
9.2. Competitive Dashboard
9.3. The best winning strategies
For more information on this report visit https://www.researchandmarkets.com/r/wv49x6