The Financial Technologies, or FinTech, industry is currently experiencing a significant global surge. It is driven by factors such as evolving consumer expectations, technological advancements, and regulatory developments. FinTech is revolutionizing the traditional financial services industry by integrating technology into financial services to enhance their efficiency, convenience, and accessibility.
The global FinTech market was valued at approximately $128.51 billion in 2018, and it is expected to reach a market value of $435 billion by 2026, according to Allied Market Research. This signifies a Compound Annual Growth Rate (CAGR) of 16.74% from 2019 to 2026. The increasing shift towards digital payments for both B2B and B2C transactions is one of the key factors driving this growth.
AI is playing a crucial role in this growth, particularly in areas such as risk management, fraud detection, and personalized financial planning. AI's ability to analyze vast amounts of data, identify patterns, and make predictions is helping companies to mitigate risks, detect fraudulent activities, and deliver personalized financial services. As the FinTech industry continues to grow, the use of AI and other advanced technologies is expected to become more prevalent.
AI can assist in fraud detection by recognizing patterns and anomalies in transactions.
- Risk management: predicting market trends and fluctuations.
- Personalized financial planning: can be made possible with AI, helping customers make informed decisions about their investments.