Latest News- Generative AI In Banking And Finance Market: Natural language processing is expected to lead the Technology segment during 2025-2029

The Generative AI In Banking And Finance Market is being driven by Imperative for enhanced customer experience

The Generative AI In Banking And Finance Market is expected to grow at a CAGR of 41.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 6980.5 million. In the banking and finance sector, a significant shift is occurring, fueled by generative AI's advanced capabilities to deliver customized customer experiences. This transition marks a departure from one-size-fits-all marketing strategies to a personalized, consultative approach. Financial institutions are harnessing generative AI to analyze vast and complex datasets, including transaction records, investment tendencies, customer interactions, and socioeconomic indicators. The ultimate goal goes beyond targeted advertising; it encompasses anticipating client needs, providing tailored financial advice, and fostering enduring client relationships. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Technology
  • Natural language processing
  • Deep learning
  • Predictive analytics
  • Generative adversarial networks
  • Others
• Deployment
  • Cloud based
  • On premises
• Application
  • Fraud detection
  • Risk assessment
  • Customer service
  • Trading and portfolio management
  • Compliance
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • Japan
    • South Korea
  • South America
  • 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 enhanced customer experience
• Escalating demand for operational efficiency and cost optimization
• Advanced capabilities in fraud detection and compliance

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

• Overcoming data security, privacy, and confidentiality hurdles
• Navigating evolving and fragmented regulatory landscape
• Ensuring model accuracy, reliability, and mitigating hallucination risks

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Market Scope in Generative AI In Banking And Finance Market Research Report

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Research Analysis Overview

In the banking and finance sector, Generative AI is revolutionizing various applications such as financial modeling, risk mitigation, and audit trails. Customer onboarding is streamlined with AI, and Explainable AI Finance ensures transparency. AI model validation, regulatory reporting, and synthetic data generation enhance efficiency. Anomaly detection in finance, AI in insurance, lending, payments, and bias detection ensure accuracy and fairness. Data quality assessment, model interpretability, responsible AI principles, and governance framework ensure compliance and trust.

Market Research Overview

In the dynamic world of banking and finance, the implementation of Generative AI models, a subset of Artificial Intelligence, is revolutionizing fraud detection. Utilizing advanced Natural Language Processing and Machine Learning algorithms, these models generate new data based on existing patterns, enhancing the ability to identify and prevent fraudulent activities. The application of Generative AI in banking and finance contributes to the global IT software market, specifically the application software sector, which encompasses companies specializing in software development for business and consumer markets. This includes enterprise and technical software, as well as cloud-based solutions. Technavio, a leading technology research and consulting firm, calculates the size of the IT software market based on the combined revenue generated by all types of IT software providers, including those offering cloud-based solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/