Global Artificial Intelligence in Banking Market Size Likely to Grow at a CAGR of 22.5% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the global artificial intelligence in banking market will grow at a CAGR of 22.5%. In 2024, the market size is projected to reach a valuation of USD 22,688.7 Million. By 2033, the valuation is anticipated to reach USD 140,940.1 Million.

Artificial Intelligence in Banking Market: Growth Factors and Dynamics

• Improved Customer Experience: AI-based technologies such as chatbots and personalized recommendations enhance customer interaction, responses are immediate, and financial services seem more tailored to improve total satisfaction and engagement.
• Fraud Detection and Prevention: The AI system monitors the pattern of transactions and reports any anomaly in real-time. Hence, fraud and security risks are reduced, which consequently improves the security aspects of finance and trust.
• Operational Efficiency: Processes in which automation is implemented via AI and RPA are usually completed with a few mistakes and less costs.
• Advanced Analytics: Thanks to advanced AI-enhanced data analytics, improvements in risk analytics, portfolio management, and decision-making processes are possible, allowing banks to maximally enhance their performance and efficiency.
• AI-Driven: Personalization: The bank could personalize and deliver more relevant products and services to specific customer needs and wants using AI. This would help with acquisition and retention.
• AI in banking: Foraying into New Markets—The Use of AI in banking enables banks to explore newer opportunities in emerging markets, as rapid digitalisation offers banks the opportunity to introduce smart technologies to new segments of customers.

Artificial Intelligence in Banking Market: Partnership and Acquisitions

• In 2023, Temenos, a Switzerland-based software company, partnered with Amazon Web Services (AWS) to deliver core banking solutions via Software-as-a-Service (SaaS). This collaboration extends Temenos Banking Cloud’s global reach, ensuring high availability and data sovereignty without expensive onsite infrastructure.
• In 2022, JPMorgan Chase & Co. acquired Renovate Technologies, a cloud-native payments technology firm, to advance its merchant acquiring platform. This acquisition supports JPMorgan Chase’s payments modernization strategy and accelerates its transition to cloud-based solutions for enhanced efficiency.

Report Scope

Artificial Intelligence in Banking Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Artificial Intelligence in Banking Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Accelerated Digital Transformation The pandemic pushed the curve toward accelerated digital transformation as the demand for digital banking and AI increased. Banks wanted to make their remote services offerings more efficient while checking increased, more voluminous online transactions, forcing the market to adapt rapidly to evolving consumer behavior and operational needs.
• Greater Cybersecurity Threats: E-banking and digital banking surged during the pandemic and sadly brought more cyber threats and fraud attempts against those banks. This has even baffled AI systems, which find it hard to detect and mitigate these sophisticated threats; thus, less trust and security are placed in digital platforms.
• AI Security Upgrades. Today, banks are deploying advanced AI-based security measures so that sensitive data will be kept safe and efforts to prevent rising threats towards digital platforms will be thwarted. This helps to recover lost confidence among consumers.
• Rapid Integration of AI. Due to the pandemic, the speed of business change has forced banks to expedite AI integration into operations. Improved AI systems, including several others, are deployed to offer enhanced customer service, automate procedures, and smoothen operations.
• Remote Banking Solutions: Investment in developing and improving remote banking solutions using artificial intelligence to create easy online experiences, virtual customer support, and safe digital transactions keeps up with the growing demand for service delivery at a distance.
• Customer Insight and Personalization: Banks are using AI more to understand customer data and preferences. Based on customer insights and targeted marketing, they can deliver personalized services, which can help retain existing customers and acquire new ones in the aftermath of the pandemic.
• Strengthened regulatory compliance: To be entrenched in the ever-emerging regulatory compliance, banks have had to invest in AI-driven compliance tools that accelerate and make reporting compliant with emerging regulations—a factor that has reduced risks and increased the transparency of operational procedures.
• Advanced AI Training and Development: Banks, in particular, spend a lot of money on training and developing AI systems to better present solutions to complex scenarios requiring more effort to refine their decision-making skills. Further improvement to algorithms and expansion of data sets help increase accuracy and efficiency in deploying AI solutions.

In conclusion, the COVID-19 pandemic has had a mixed impact on Artificial Intelligence in the Banking Market, with some challenges and opportunities arising from it.

List of the prominent players in Artificial Intelligence in Banking Market:

• IBM Corporation
• Microsoft Corporation
• Google LLC
• Amazon Web Services (AWS)
• Salesforce.com Inc.
• SAS Institute Inc.
• Oracle Corporation
• SAP SE
• NVIDIA Corporation
• Cognizant Technology Solutions Corporation
• Accenture plc
• Infosys Limited
• TIBCO Software Inc.
• H2O.ai
• ThoughtSpot Inc.
• Others

The Artificial Intelligence in Banking Market is segmented as follows:

By Component

• Service
• Solution

By Application

• Fraud Detection and Prevention
  • Transaction Monitoring
  • Identity Verification
• Customer Service
  • Virtual Assistants
  • Automated Customer Support
• Risk Management
  • Credit Scoring
  • Market Risk Analysis
• Personalized Banking
  • Customer Recommendations
  • Targeted Marketing
• Compliance and Regulatory Reporting
  • Anti-Money Laundering (AML)
  • Know Your Customer (KYC)
• Others

By Technology

• Machine Learning
• Supervised Learning
• Unsupervised Learning
• Reinforcement Learning
• Natural Language Processing (NLP)
• Text Analysis
• Speech Recognition
• Chatbots and Virtual Assistants
• Robotic Process Automation (RPA)
• Process Automation
• Workflow Automation
• Predictive Analytics
• Risk Management
• Customer Insights

By Enterprise Size

• Large Enterprise
• SMEs

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America