The AI in Fintech Market size is estimated at USD 42.83 billion in 2023, and is expected to reach USD 49.43 billion by 2028, growing at a CAGR of 2.91% during the forecast period (2023-2028).
The COVID-19 pandemic outbreak has been accelerating the change in the way how people interact with financial services. Payment- and wealth-focused fintech companies have focused on bolstering their existing infrastructure by investing in new resources or expanding capacity to withstand the stress to their systems from higher transaction volumes. Though it seemed challenging for fintech companies, such actions have provided a significant need for AI solutions as these companies depend on transaction volumes for revenue. Such factors are expected to spearhead the demand for AI solutions in the fintech market.
AI in the Fintech market is moving towards fragmented due to many global players. Various acquisitions and collaborations of large companies are expected to occur shortly, focusing on innovation. Some major players in the market include IBM Corporation, Intel Corporation, Narrative Science, and Microsoft Corporation.
In February 2023, Baiduri Bank in Brunei chose Singapore-based Software-as-a-Service (SaaS) fintech Finbots.ai to modernize its credit risk management with artificial intelligence (AI). According to Finbots.ai, its AI credit modeling solution, creditX, will allow Baiduri Bank to design and deploy high-quality credit scorecards in a fraction of the time and cost. This will minimize credit risk, increase efficiency and agility for retail and small and medium-sized organizations (SMEs), as well as expedite the bank's financial inclusion campaign for the underserved credit market.
In February 2023, Scotiabank introduced a new tool, Scotia Smart Investor, to give customers greater asset control. The Canadian lender introduced the new device via assistance+, combining AI-powered recommendations with real-time personalized assistance. Scotia Smart Investor was created by Scotia Securities, Scotiabank's linked mutual fund dealer. The tool, which includes an AI-powered advice engine, will assist users in designing, planning, monitoring, and updating financial goals.
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