Artificial Intelligence in FinTech global market to reach $24.17 billion by 2026
The global Artificial Intelligence (AI) in FinTech market is expected to grow from $7.25 billion in 2021 to $9.13 billion in 2022 at a compound annual growth rate (CAGR) of 25.9%. The AI in FinTech market is expected to grow to $24.17 billion in 2026 at a CAGR of 27.6%.
North America was the largest region in the AI in FinTech market in 2021. The AI in FinTech market report covers Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The need for fraud detection in fintech or financial institutions contributes to AI growth in the fintech market. Artificial intelligence or machine learning algorithm can learn new information from the data collected, the more data that AI manipulates, the more AI can be learned, and the banks can gain deeper insights with AI technology.
The most significant advantage of AI is that, over time, the algorithm builds on collecting more data and learning how to use it. The advantage is that it starts when the AI is deployed and continues to grow without interruption of contribution. The need for fraud detection in FinTech drives the market for AI in FinTech.
According to the 2020 Identity Fraud Report by Javelin Strategy & Research, a US-based insights company for financial institutions, Financial institutions suffered a loss of $16.9 billion in 2019 alone due to account takeover and fraud identity. It’s difficult to identify correctly and authenticate people on digital channels. Capgemini claims that fraud detection systems powered by AI or machine learning algorithms minimize fraud investigation time by 70% and improve detection accuracy by 90%.
Technological Advancement is the critical trend gaining popularity in AI in the FinTech market. For instance, in 2021, In India, Robo-advisory technology refers to the digital platforms that provide financial advice through AI, driven software with zero human intervention. It advises the people to pick up the right stock and even suggests replacing the existing stock in the portfolio based on the factors related to valuations, governance, and performance.