Chatbot Market in BFSI By Component (Solution, Services) , By Platform Type (Web-based, Mobile-based) By End User (Banks, Insurance Companies, Others) By Application (Customer Support, Branding and Advertisement, Data Security and Compliance, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2032
Chatbot Market in BFSI
The chatbot market in BFSI was valued at $1.3 billion in 2023 and is projected to reach $11.6 billion by 2032, growing at a CAGR of 27.5% from 2024 to 2032.
Chatbot has become a critical interactive tool in the BFSI industry as it is transforming the way of communication between financial institutions and their customers. This virtual assistant is powered by the capabilities of AI and provides round-the-clock support to customers. The key benefits of using a chatbot include automation of routine tasks, enhanced customer experience, increase in operational efficiency, and scalability of operations.
The digitalization of the BFSI industry has upsurged 24/7 financial activities, fueling the need for immediate assistance at any time of the day. This is a key driver of the growth of the chatbot market in BFSI. In addition, the deployment of AI and ML algorithms has propelled the development of the market as they enhance the accuracy and personalization of chatbots. To boost their precision and customization, the adoption of multi-bot technology is gaining traction in the market. This technology includes the deployment of a specialized suite of chatbots with expertise in a specific domain of the financial sector, offering customers thorough information and assistance.
However, concerns pertaining to data privacy and unauthorized security breaches over digital platforms deter several individuals from using them, which restrains the growth of the chatbot market in BFSI. Furthermore, ensuring that chatbots comply with complex regulations of the BFSI industry pertaining to data security and anti-money laundering is a challenging process that hampers the market development. On the contrary, increase in the popularity of online banking among the millennial generation is presenting lucrative opportunities for the chatbot market in BFSI. According to a 2023 survey by the American Bankers Association, approximately 70% of the total population using online banking is between the age group 28-78. Moreover, more than half of the population (around 56%) using online services lies above the age of 44. Therefore, the convenience and efficiency offered by online financial services is poised to open new avenues for the chatbot market in BFSI.
Segment ReviewThe chatbot market in BFSI is segmented into component, platform type, end user, application, and region. On the basis of component, the market is bifurcated into solution and services. Depending on platform type, it is divided into web-based and mobile-based. As per end user, it is classified into banks, insurance companies, and others. According to application, it is categorized into customer support, branding & advertisement, data security & compliance, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key FindingsOn the basis of component, the solution segment was the highest shareholder in 2023.
Depending on platform type, the web-based segment acquired a high stake in the market in 2023.
As per end user, the banks segment dominated the market in 2023.
According to application, the branding & advertising segment held a high share of the market in 2023.
Region wise, North America was the highest revenue generator in 2023.
Competition AnalysisThe major players in the global chatbot market in BFSI include [24]7.ai, Inc., Acuvate, Amazon Corporation, Aivo, Artificial Solutions, Creative Virtual Ltd., eGain Corporation, IBM Corporation, Inbenta Technologies Inc., Next IT Corp., Nuance Communications, Inc., Google LLC, Kasisto, and LivePerson. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.
Key Market SegmentsBy ComponentSolution
Services
By Platform TypeWeb-based
Mobile-based
By End UserBanks
Insurance Companies
Others
By ApplicationCustomer Support
Branding and Advertisement
Data Security and Compliance
Others
By RegionNorth America
U.S.
Canada
Europe
France
Germany
Italy
Spain
UK
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
South Africa
Saudi Arabia
UAE
Mexico
Rest of LAMEA
Key Market Players[24]7.ai, Inc.
Acuvate
Amazon Corporation
Aivo
Artificial Solutions
Creative Virtual Ltd.
eGain Corporation
IBM Corporation
Inbenta Technologies Inc.
Next IT Corp.
Nuance Communications, Inc.
Google LLC
Kasisto
LivePerson