According to the latest research report titled, “AI in Fintech Market Report (2023 – 2028)” by Mordor Intelligence, the market is estimated at USD 42.83 billion in 2023 and growing at a CAGR of 2.91% during the forecast period. 

Artificial intelligence assists in identifying rapid and effective ways to detect financial fraud and malpractice in the Fintech Market. It creates a grasp of a user’s app usage habits, such as transaction methods, and payments that is used to spot anomalies in real-time. It reduces false positives and allows specialists to focus on more complex issues because it is more efficient than manual techniques. Several credit card companies implement predictive analytics into their existing fraud detection workflows to reduce false positives. The market further gains traction with several players offering AI-based Anti-money Laundering (AML) and Fraud detection solutions for credit card companies and other financial institutions. 

Payment – and wealth-focused fintech companies have focused on bolstering their existing infrastructure by investing in new resources or expanding their 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. 

Report Summary 

• Market Size (2023): USD 42.83 Billion 
• Market Size (2028): USD 49.43 Billion 
• CAGR (2023 – 2028): 2.91% 
• Study Period: (2018-2028) 
• Fastest Growing Market: Asia-Pacific 
• Fastest Growing Market: North America 
• Forecast Units: Value (USD Billion)   
• Report Scope: Market Dynamics, Revenue Forecast & Segmentation, Competitive Landscape & Recent Developments, Market Growth, Future Opportunities, and Trends    
• Market Drivers: Increasing Demand for Process Automation Among Financial Organizations and Increasing Availability of Data Sources  

Which are the Top Companies in the AI in 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. 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).  

Prominent players in the AI in Fintech Market are: 

• IBM Corporation 
• Intel Corporation 
• ComplyAdvantage.com 
• Narrative Science 
• Amazon Web Services Inc. 
• IPsoft Inc. 
• Next IT Corporation 
• Microsoft Corporation 
• Onfido 
• Ripple Labs Inc. 
• Active.Ai 
• TIBCO Software (Alpine Data Labs) 
• Trifacta Software Inc. 
• Data Minr Inc. 
• Zeitgold 
• Sift Science Inc. 
• Pefin Holdings LLC 
• Betterment Holdings 
• WealthFront Inc. 

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Key Highlights from the AI in Fintech Market Report 

 

1. Fraud Detection is Expected to Witness Significant Growth 

• According to a new poll conducted by Certified Fraud Examiners (ACFE) and analytics pioneer SAS, the use of Artificial Intelligence (AI) and Machine Learning (ML) for fraud detection increased internationally last year.  

• According to the poll, 13% of organizations employ artificial intelligence (AI) and machine learning to detect and deter fraud, with another 25% planning to do so in the next year or two, representing roughly 200% growth. 

• The Reserve Bank of India (RBI) reported around 9,103 bank fraud incidents across India in fiscal year 2022. This increased over the previous year, reversing the last decade’s trend.  

• The total value of bank scams fell from INR 1.38 trillion to INR 604 billion. Such a high rise in bank fraud cases would allow the AI market players to develop new solutions or tools to cater wide range of needs of the customer. 

• The players in the market are collaborating to provide better service to their customers. For instance, in February 2023, Mastercard partnered with Network International, the Middle East and Africa’s premier provider of digital commerce, to address fraud, declines, and chargebacks to minimize costs and risk for acquirers.  

2. North America Holds the Largest Market Share of AI in Fintech Market 

North America is expected to dominate the market due to prominent AI software and systems suppliers, combined investment by financial institutions into projects, and the adoption of AI in Fintech solutions. The region is expected to experience significant growth in this area in the coming years. Government initiatives and investments towards AI drives the market. In fiscal year 2022, the U.S. government spent USD 3.3 billion on artificial intelligence contracts, according to data from a recent Stanford University study. 

The players in the market are collaborating to provide better service to the customers in the region. In August 2022, Zest AI, the recipient of NACUSO’s CUSO of the Year Award and a player in improving credit access through better scoring announced a partnership with Equifax, Inc., a worldwide data, analytics, and technology firm. The collaboration will allow credit unions that use Zest AI’s underwriting technology to analyze more of the data sourced by Equifax to accept more applications with better speed, particularly those who have traditionally been underbanked. This is Zest AI’s first big distribution relationship with a National Consumer Reporting Agency.   

What are the Latest Developments in the AI in Fintech Market?    

• In Mar 2023: CSI, an end-to-end fintech and regtech solution provider, partnered with Hawk AI, a global anti-money laundering (AML) and fraud prevention technologies for banks and payment processors, to provide its latest products, WatchDOG Fraud and WatchDOG AML. AI and ML models in the products enable multilayered, automated oversight that monitors, detects, and reports fraudulent or suspect activity in real-time.  
• In Feb 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.  
• In Jan 2023: Inscribe raised USD 25 million to fight financial fraud with artificial intelligence. Inscribe parses, classifies, and data-matches financial onboarding documents, emphasizing any inconsistencies between the papers provided and documents recovered using its AI-powered fraud detection.
• Mordor Intelligence Report on the AI in Fintech Market segments the market based on product type, application, and geography: 

 

• By Type (Market Size & Forecast based on Value (USD Billion), 2023-2028)   

• Solutions 
• Services 

• By Deployment (Market Size & Forecast based on Value (USD Billion), 2023-2028)   

• Cloud 
• On-premise 

• By Application (Market Size & Forecast based on Value (USD Billion), 2023-2028)   

• Chatbots 
• Credit Scoring 
• Quantitative & Asset Management 
• Fraud Detection 
• Other Applications 

• By Geography (Market Size & Forecast based on Value (USD Billion), 2023-2028)   

• North America 
• Europe 
• Asia Pacific 
• Rest of the World 

In a nutshell, the Mordor Intelligence Market Research Report provides in-depth market insight to industry players, investors, researchers, consultants, and business strategists, looking for comprehensive details on the AI in Fintech industry. Get a glance at the AI in Fintech Market Report (2023 – 2028) 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.   

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