AI in BFSI market to grow at more than 40%: Report

According to Global Market Insights report, artificial intelligence in BFSI Market for Machine learning technology is estimated to witness lucrative growth from 2018 to 2024. The integration of the intelligent algorithms for risk mitigation and compliance, anti-money laundering, and fraud detection applications is the primary factor that augments the demand for the technology.

Natural Language Processing (NLP) is also used widely in the BFSI sector in the customer contact center to analyze the customers’ voice and solve their queries. Financial institutions are also utilizing NLP for back-office applications & operations and text-mining.

The solution segment is leading the artificial intelligence in BFSI market with more than 85 percent stake in the revenue in 2017. Wealth management institutes, banks, and insurance companies are adopting AI solutions to analyze the customer behavior and fulfill their requirements and provide a personalized experience.

The solution market includes chatbots, CRM, customer behavior analytics, data analytics and visualization, and fraud detection solutions. CRM is dominating the market with more than 40 percent share due to the high adoption among the financial institutes in the customer contact centers and business operations.

Artificial intelligence in BFSI market in service market is anticipated to grow prominently during the forecast timeline with an approximate CAGR of 38 percent. The market is driven by the demand for professional and managed services to reduce the operational expenditure. Moreover, companies are now trying to focus more on core competencies to improve their market penetration.

The customer service is the dominating application of the artificial intelligence in BFSI market with over 45 percent share in the revenue in 2017. The integration of the conversational AI solution and chatbot among the financial institutes is propelling the growth. Furthermore, the use of advanced analytical tools by the banks, insurance, and wealth management companies to analyze the credit rating, risk profiling, and analyzing the customer behavior to provide personalized products and services also supports the technology in fintech growth.

Banks cover more than 50 percent of the artificial intelligence in BFSI market. The banks are teaming up with the fintech companies to develop advanced products and improve the customer services. They are relying more on machine learning algorithms for the risk management and fraud detection.

Furthermore, the adoption of the digital banking solutions and supportive government initiatives launched by the government to promote the digital banking also fosters the market growth. The customer service is the dominating application of the artificial intelligence in BFSI market with over 45 percent share in the revenue in 2017.