Artificial Intelligence in BFSI Market from service market is anticipated to grow prominently during the forecast timeline with an approximate CAGR of 38%.
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The artificial intelligence in BFSI 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. Persistently being channelized by cutting edge technologies, the deployment of artificial intelligence in BFSI market is aptly bringing a revolution in the operation model with regards to hassle-free efficient transaction. In an era of digitization, where consumers have been increasingly expecting more individualized and compelling services from banks, adoption of artificial intelligence in BFSI market is showing great level of interest. Artificial Intelligence has already made its presence felt in the banking infrastructure, providing smooth differential customer experience and security assurance on digital channels.
The solution segment is leading the artificial intelligence in BFSI market with more than 85% 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 artificial intelligence in BFSI market in solution segment includes chatbots, CRM, customer behavior analytics, data analytics and visualization, and fraud detection solutions. CRM is dominating the market with more than 40% share due to the high adoption among the financial institutes in the customer contact centers and business operations.
Automation is certainly the focus of interest which has triggered penetration of artificial intelligence in BFSI market. Most of the banks are making agonizing attempts to deploy automation technologies with an anticipation to deliver new wave of productivity, in tandem with improvement in cost savings and customer experience. Despite some of the early setbacks in application of robotics and AI in banking processes, the growth prospect of AI in BFSI industry is claimed to be humongous. The technology is rapidly maturing with domain expertise getting developed among both vendors and banks.
The customer service is the dominating application of the artificial intelligence in BFSI market with over 45% share in the revenue in 2017. The integration of the conversational AI solution and chatbot among the financial institutes is propelling the artificial intelligence in BFSI market 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.
North America accounted for more than 50% of the share in artificial intelligence in BFSI market in 2017. The high investments in the AI and fintech sector by the technology giants are the major factors pushing the market growth. Furthermore, the early adoption of the technology and highly developed infrastructure are supporting the market growth. Asia Pacific is anticipated to grow substantially with more than 40% CAGR. The market growth is credited to the high investments by China and India in the AI technology. […]