AI applications will expand in global banking, finance and insurance

AI applications in banking, finance and insurance are expected to grow steadily.

According to the 2022-2032 report of Global Market Insights (USA), the AI market value in the BFSI sector reached 20 billion USD in 2022, expected to reach 100 billion USD in 2032, with an average growth rate of 20%/year.

Some of the key technology companies offering products in the market today are Avaamo Inc, Cape Analytics LLC, Amazon Web Services Inc, IBM Corporation, Oracle Corporation, Microsoft Corporation, Google and Baidu Inc.

Some of the first BFSI organizations to adopt chatbots and voicebots are Bank of America, Commonwealth Bank of Australia, MasterCard, Capital One, and OCBC Bank Singapore. BFSI organizations often outsource these technologies, as in-house development can lead to higher overhead costs.

Risk monitoring companies are using AI frameworks to record audio and video of interactions between customers and bankers, and to review documents typically supervised by auditors. For example, Denmark’s Danske Bank deployed an AI framework that improved fraud detection rates by 60%.

Additionally, Paypal has developed a fraud detection tool using open source tools, which works on a combination of data mining, machine learning and humans to help detect fraud.

Banks and financial institutions are using AI technology to personalize customer experiences and enhance their services. Beyond these basic applications, AI can also improve back-office efficiency and help reduce fraud and security risks for banks. This trend is gaining momentum globally, with a focus on leading regions such as North America, Europe, Asia-Pacific, South America, the Middle East, and Africa.

As technology continues to advance and investment in AI continues to increase, the coming decade is expected to bring huge growth opportunities for AI in the BFSI market. However, the sector will also face certain challenges to overcome, typically issues related to security and compliance; transparency, explainability and reliability; classified databases; economic foundations and social security, etc.

Overall, the AI in BFSI market is poised for significant growth, driven by advancements in technology and increased investments. The next decade holds great potential for this dynamic industry.

(according to Gminsights)

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