Latest News- AI And Automation In Banking Market: Solutions is expected to lead the Component segment during 2025-2029

The AI And Automation In Banking Market is being driven by Imperative for operational efficiency and cost reduction

The AI And Automation In Banking Market is expected to grow at a CAGR of 26.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 88177.9 million. The global AI and automation in banking market is witnessing a significant shift towards the adoption of generative AI technology. This advanced form of AI goes beyond predictive capabilities, generating new and original content such as human-like text, computer code, and synthetic data. This technological innovation is revolutionizing customer engagement, internal operations, and product development within the financial sector. In customer service, generative AI is driving the evolution of conversational agents, enabling them to handle intricate, multi-turn dialogues, interpret nuanced intent, and deliver empathetic and contextually appropriate responses, thereby enhancing the customer experience far beyond the limitations of scripted chatbots. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Solutions
  • Services
• Business Segment
  • Large enterprises
  • SMEs
• Application
  • Fraud detection and prevention
  • Customer relationship management
  • Process automation
  • Predictive analytics
  • Others
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Imperative for operational efficiency and cost reduction
• Escalating demand for enhanced customer experience and hyper-personalization
• Increasingly complex risk management and regulatory compliance requirements

However, the market also witnesses some limitations, which are as follows:

• Pervavsive data privacy, security, and governance concerns
• High implementation costs and complex integration with legacy systems
• Navigating regulatory uncertainty and AI black box challenge

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Market Scope in AI And Automation In Banking Market Research Report

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Research Analysis Overview

In the banking sector, AI and automation are revolutionizing operations through deep learning applications, optimizing bank processes, and enhancing financial modeling techniques. Data security protocols and transaction security systems ensure safety, while customer relationship management and regulatory reporting automation improve experience and compliance. Risk assessment algorithms, explainable AI finance, and intelligent process automation drive operational efficiency gains. Digital transformation banking includes cybersecurity solutions, fraud prevention strategies, client onboarding automation, and financial inclusion programs. Investment portfolio management, credit risk management, account reconciliation automation, and payment fraud prevention further boost efficiency and decision-making. Automated account management and customer retention strategies ensure long-term success.

Market Research Overview

In the dynamic world of banking, AI and automation are revolutionizing operations through advanced technologies such as ai-powered fraud detection, robotic process automation (RPA), machine learning algorithms, and natural language processing. These innovations fall under the application software market segment of the global IT software industry. According to Technavio, this market encompasses businesses producing specialized software for enterprises and consumers, excluding those focused on interactive home entertainment or systems software. The market size is determined by the consolidated revenue generated by these entities, including cloud-based software providers.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/