AI in Banking and Finance Market to 2034
Source: globenewswire.com
The Generative Artificial Intelligence (AI) in Banking and Finance Market is expected to grow from $1.29 billion in 2024 to $21.57 billion by 2034, showing a CAGR of 31.64%.
This growth is driven by data security, personalized financial services, and fraud detection. Future growth will be supported by economic expansion, urbanization, digital transformation, and governmental support, despite a past lack of trust in AI.
The industry is challenged by a shortage of AI experts. The market is fragmented, with the top ten players holding only 16.45% of the total market share in 2023. Microsoft Corporation leads with a 2.10% share, followed by Google LLC and IBM.
North America had the largest market share at 52.10% in 2024. South America and Africa are projected to be the fastest-growing regions.
Natural language processing is the largest technological segment, accounting for 36.89% of the market in 2024, and is expected to lead future growth. Cloud-based solutions dominate deployment models. Fraud detection leads in application, while trading and portfolio management are expected to grow rapidly.
Banks make up 48.31% of the end-user segment, but fintech companies are expected to drive future growth.
Opportunities exist in technology, deployment, application, and end-user market segments. Natural language processing and cloud-based deployments are expected to see significant gains.
Market trends show transformative impacts on financial documentation and innovative financial services through low-code AI solutions, with strategic partnerships boosting AI innovation. Priorities for banks and finance firms include leveraging AI for better services, enhancing efficiency, adhering to compliance, and expanding into markets like South America and Africa.
Strategic collaborations and transparent AI solutions are key to building trust and maximizing growth. Generative AI firms should focus on competitive pricing, consumer education, and strategic alliances. Fintech partnerships and opportunities in trading and portfolio management can unlock high-growth potential.