According to the most recent research conducted by knowledgeable researchers at Fact.MR, the worldwide banking industry is expected to generate US$ 229.55 billion by the end of 2034, representing a high-value 21.4% CAGR, from US$ 33.01 billion in 2024. Key drivers propelling market expansion include banks' expanding AI investments and consumers' growing preference for individualized financial services.
Prominent financial firms are putting a lot of money into artificial intelligence (AI) to supplement automated investment advisors. The goal is to apply new approaches to detect red flags, including money laundering, and bring expertise in recognizing them. This will drive the rise of AI and automation in the banking business over the assessment period. Additionally, as the banking business becomes more competitive and complex, there is a growing need for industry-specific solutions to meet the growing demands. Therefore, a number of banks and FinTech companies are widely implementing AI solutions to satisfy the expanding needs of their clientele. Growing funding from major players in the sector is boosting the growth of the global AI and automation in banking market.
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Banks are providing their customers with AI-powered budget management tools that enhance their money management process and help them reach their financial goals. Additionally, as robo-advisors generally cater to investors with low resources, such individuals and SMEs, they are becoming increasingly popular in the personalized financial services space.
Furthermore, traditional data processing methods are used by AI-powered robo-advisors to provide their clients with financial portfolios and services including trading, retirement planning, and investments. Furthermore, another major element propelling the growth of AI and automation in the banking industry is the rise in usage-based loans, which is helping to calculate the interests suitable for various individuals with the aid of sophisticated algorithms.
Key Market Growth Drivers
- Data entry, compliance checks, and transaction processing are examples of repetitive and routine activities where automation reduces operational costs and human error. This boosts output and frees up banking staff members to work on more strategic and valuable projects.
- Technologies based on artificial intelligence (AI) are now crucial for identifying and preventing fraud.
- Banks are able to effectively control risk and respond quickly to potential assaults with the use of machine learning algorithms for real-time anomaly identification and transaction pattern analysis.
- Artificial intelligence-powered chatbots and virtual assistants that provide 24/7 support and customized customer care, significantly improving the client experience, are key trends in the banking industry related to automation and AI.
- Artificial intelligence (AI) and automation are helping banks maintain compliance by reducing the risk of non-compliance and the associated fines by automating compliance monitoring, reporting, and documentation operations.
- AI is automating a number of banking processes, which reduces the need for human labor and saves a significant amount of money.
- Artificial intelligence (AI) systems are analyzing vast amounts of data quickly and correctly, providing decision-makers with useful information.
- Banks are utilizing automation and artificial intelligence (AI) to enhance corporate procedures, develop new products and services, and comprehend market trends and customer behavior better.
Banks are providing their customers with AI-powered budget management tools that enhance their money management process and help them reach their financial goals. Additionally, as robo-advisors generally cater to investors with low resources, such individuals and SMEs, they are becoming increasingly popular in the personalized financial services space.
Furthermore, traditional data processing methods are used by AI-powered robo-advisors to provide their clients with financial portfolios and services including trading, retirement planning, and investments. Furthermore, another major element propelling the growth of AI and automation in the banking industry is the rise in usage-based loans, which is helping to calculate the interests suitable for various individuals with the aid of sophisticated algorithms.
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In terms of AI and automation in banking, North America is expected to account for 33% of the worldwide market share by 2024. The early adoption of contemporary technologies by the area market is credited with its rapid development. The presence of established firms' networks in the area is significantly boosting the expansion of the industry. During the projected period (2024 to 2034), the East Asia region is expected to have a notable compound annual growth rate (CAGR) of 22.6% in the use of artificial intelligence (AI) and automation in banking.
Segmentation of AI and Automation in Banking Market Research
- By Component :
- Services
- Solutions
- By Technology :
- Deep Learning Machine Learning
- Natural Language Processing
- Computer Vision
- By Application :
- Customer Service
- Back Office
- Financial Advisory
- Compliance Security
- Risk Management
- By Solution :
- Customer Service Analytics
- Data Analytics Visualization
- Fraud Detection
- Customer Relationship Management
- By Region :
- North America
- Western Europe
- Eastern Europe
- Latin America
- East Asia
- South Asia Pacific
- Middle East Africa
AI-driven solutions are revolutionizing traditional banking processes, from customer service chatbots and personalized financial advice to fraud detection and risk management. Automation is streamlining operations, enabling faster and more accurate transaction processing, and facilitating seamless regulatory compliance. These advancements are not only enhancing the capabilities of financial institutions but also transforming customer expectations and experiences.
