Artificial Intelligence (AI) In Banking Market Forecasts 2025-2030: Growth Opportunities, Challenges, Regulatory Framework, Customer Behaviour, and Trend Analysis

Dublin, Jan. 10, 2025 (GLOBE NEWSWIRE) — The “Artificial Intelligence (AI) In Banking Market – Forecasts from 2025 to 2030” report has been added to ResearchAndMarkets.com’s offering.

Artificial intelligence (AI) in the banking market is estimated to grow at a CAGR of 17.96%, attaining US$75.357 billion by 2030, from US$32.988 billion in 2025.

AI integration in banking has transformed the sector. This transformation is leading to a more customer-centric approach and enhanced technological relevance. These systems reduce costs through heightened productivity. The BIS Annual Economic Report, emphasizes that Central banks should embrace artificial intelligence, anticipating its impact on the economy. The widespread adoption will create the importance of data as a cornerstone of the AI revolution and the need for central bank cooperation.

Moreover, intelligent algorithms rapidly detect fraudulent activities, significantly improving security measures within seconds. For example, in August 2024, Zest AI announced its new fraud detection solution, Zest Protect. Zest Protect can identify fraudulent activity during the loan decision process, helping credit unions, banks, and other lenders navigate the rising application frauds. This is a crucial shift in banking services, prioritizing efficiency and security.

Further, the growing number of internet users has created a demand for innovative technology and solutions. The number of internet users reached 5.4 billion in 2023 from 5.1 billion in 2023, according to the ITU (International Telecommunication Union) data. This led organizations like Bank of America to use innovative technology to meet the needs of its clients and employees. The organization has had a 94% increase in artificial intelligence and machine learning (ML) granted patents and pending patent applications since 2022. The company has nearly 1,100 AI and ML patents and pending applications in its portfolio, with more than half having already been granted.

Artificial Intelligence (AI) in banking growth drivers

Increase in the number of digital payments

Nowadays, every bank has a mobile app that works effectively and manages the majority of customer interactions. Digitalization has improved banks’ ability to meet customers’ needs. However, as the number of digital payments and interactions increased spontaneously, this became a challenge for the banks to achieve their goals. Yet the goal is also to increase the proportion of digital interactions.

In India, the number of digital payment transactions has increased at a CAGR of 44% from FY 2017-18 to FY 2023-24. The total digital payment transactions volume increased from 8,839 crore in FY 2021-22 to 13,462 crore in FY 2022-23.

The growing number of banks and their related transactions would seek a greater return on their investment in digital by using their vast stores of customer data and advanced analytics. These can be achieved through AI capabilities, moving beyond basic demographic segmentation and treating customers as individuals. This will also allow these banks to gain a better understanding of customer’s needs and demands.

Artificial Intelligence (AI) in the Banking Market Geographical Outlook

The Asia-Pacific artificial intelligence (AI) in banking market size is expected to grow significantly during the forecast period. The growth of AI in China’s banking sector is a phenomenal development in terms of technology and strategy for the industry. In recent years, Chinese banks have been increasing their role to adopt AI technologies aimed at enhancing efficiency in operations, better customer experience, and new income sources.

A survey was conducted with 16,000 decision-makers in industries worldwide by U.S. AI and analytics software company SAS and Coleman Parkes Research, which showed that China is leading the world in terms of their adoption of generative AI. 83% of Chinese respondents said that they use generative AI, which was higher than the global average survey of 54% consisting of 16 other countries and regions involved in the survey, including the United States, where only 65% have adopted AI.

One of the main reasons Chinese banks are embracing AI is the need to diversify income sources. Experts estimate that AI will increase fee-based income for banks from about 30% to 40% of total revenues, allowing them to reduce their dependence on net interest income, which is highly sensitive to central bank policies. The integration of AI means that banks can automate most of their processes, from customer service to fraud detection, saving on operational costs and becoming more productive. For example, major banks in China now make an average of 400 million decisions daily by applying machine learning models to position themselves miles ahead of their competitors elsewhere in Asia, such as in Singapore and India.

Reasons for buying this report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
• Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
• Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

Report Coverage:

• Historical data & forecasts from 2022 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

Key Attributes:

Competitive Analysis

• Major Players and Strategy Analysis
• Market Share Analysis
• Mergers, Acquisitions, Agreements, and Collaborations
• Competitive Dashboard

Companies Featured

• Zest AI
• IBM
• Data Robot Inc.
• Accenture
• Personetics Technologies
• Wipro
• Intel Corporation
• SAP
• Temenos
• SAS
• Abe AI (Yodlee)
• OSP Labs
• Amazon Web Services, Inc
• ACE Software Solutions Inc
• Adesso SE

By Solution

By Application

• Customer Service
• Robot Advice
• General Purpose/Predictive Analysis
• Cyber Security
• Direct Learning

By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia-Pacific

For more information about this report visit https://www.researchandmarkets.com/r/fhr7do

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• Artificial Intelligence (AI) In Banking Market