Dublin, July 06, 2026 (GLOBE NEWSWIRE) — The “Explainable AI in Banking Market Report 2026” has been added to ResearchAndMarkets.com’s offering.
The explainable artificial intelligence (AI) in banking market has witnessed rapid growth, with projections showing an increase from $1.3 billion in 2025 to $1.61 billion in 2026, reflecting a compound annual growth rate (CAGR) of 23.8%. This surge is driven by the heightened adoption of AI in banking, increased regulatory focus on AI models, the need for transparency in credit decisions, early AI governance frameworks, and the rising demand for fraud detection solutions. The forecast suggests a continuation of this upward trend, with the market expected to reach $3.8 billion by 2030, at a CAGR of 24%. This growth is powered by a strong demand for compliance with explainable AI, expansion of AI-driven risk solutions, integration of AI with banking analytics, and the adoption of cloud-based explainability tools.
The rising incidence and complexity of fraud in the financial sector accentuate the importance of explainable AI in banking. The shift towards digital banking and online payment systems has increased fraud opportunities, necessitating sophisticated AI systems that not only identify fraudulent patterns but also clearly justify automated risk decisions. For instance, in November 2025, the Federal Reserve Bank of Kansas City reported that U.S. fraud-related losses amounted to $12.5 billion in 2024, a 25% increase from the previous year, highlighting the critical need for transparency and accountability in fraud detection.
Leading companies are innovating AI solutions to bolster regulatory trust and personalize banking services. For example, in September 2023, Swiss banking software provider Temenos launched its Secure Generative AI Transaction Classification Solution. This platform offers transparent classifications of customer transactions, extending support for auditable risk evaluation within banking processes, and promoting responsible AI usage.
Furthermore, strategic acquisitions are shaping the market landscape. Aurionpro Solutions Limited’s acquisition of Arya.ai, for approximately $16.5 million in April 2024, underscores the push for enhanced AI transparency. Arya.ai’s governance-ready AI models, specialized in banking solutions, are set to increase regulatory compliance and decision clarity across Aurionpro’s portfolio.
Key market players include Alphabet Inc., Microsoft Corporation, Accenture plc, IBM, Oracle Corporation, SAP SE, and others. They are driving the evolution of explainable AI with innovative products and solutions aimed at fostering model interpretability, bias detection, and AI governance.
Tariff implications on imported hardware and software tools have sparked an increased reliance on domestic solutions, particularly in hardware-dependent markets in Europe and Asia-Pacific. This shift encourages local innovation and reduces dependency on foreign technology providers.
The explainable AI in banking market encompasses revenues from services such as risk and credit decision analysis, AI model validation, system integrations, and monitoring of AI decisions. The market’s reach includes software, services, and hardware components. Key applications span risk management, fraud detection, customer service, compliance, and credit scoring, serving various financial entities from banks to fintech firms.
Overall, the market research report offers a comprehensive analysis of the global and regional market dynamics, competitor landscapes, market segments, and emerging trends. It provides valuable insights necessary for thriving in the evolving explainable AI in banking industry.
The Explainable Artificial Intelligence (AI) in Banking Market Global Report 2026 offers strategists, marketers, and senior management essential insights to evaluate the expanding market. The report details trends shaping the market over the next decade, emphasizing the importance of explainable AI technologies in the banking sector and how they integrate with broader financial landscapes worldwide.
Reasons to Purchase:
- Obtain a global perspective with comprehensive coverage across 16 geographies.
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- Understand consumer preferences through end-user analysis.
- Benchmark against key competitors by evaluating market share, innovation, and brand strength.
- Assess market potential with total addressable market (TAM) evaluations and market attractiveness scoring.
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- Experience interactive data delivery via an Excel dashboard.
Description
The report answers critical questions about the largest and fastest-growing markets for explainable AI in banking and explores how these markets relate to the broader economy and demographic trends. It highlights technological disruptions, regulatory shifts, and evolving consumer preferences that will influence market dynamics.
The report segments the market by component, deployment mode, enterprise size, application, and end-users, covering various countries and regions globally. It provides a thorough analysis of market characteristics, size, growth segmentation, and key products and services. The competitive landscape is detailed with market shares, major financial deals, and a company scoring matrix.
Report Scope
Markets Covered:
- By Component: Software, Services, Hardware
- By Deployment Mode: On-Premises, Cloud
- By Enterprise Size: Small and Medium Enterprises, Large Enterprises
- By Application: Risk Management, Fraud Detection, Customer Service, Compliance, Credit Scoring, Other Applications
- By End-User: Banks and Financial Institutions, Fintech Companies, Payment Service Providers, Insurance and Investment Firms
Subsegments:
- Software: Model Interpretability, Decision Transparency, Risk Analytics, Visualization and Reporting, Model Governance
- Services: Consulting, Model Audit, Implementation, Regulatory Compliance Advisory, Training and Support
- Hardware: High Performance Servers, Data Processing Units, Storage and Memory Systems, Secure Computing Infrastructure, Networking Equipment
Companies Mentioned: Alphabet Inc., Microsoft Corporation, Accenture plc, IBM, Oracle Corporation, SAP SE, Cognizant Technology Solutions, Moody’s Analytics Inc., SAS Institute, Teradata Corporation, Fair Isaac Corporation, Tredence Inc., AlphaSense Inc., C3.ai Inc., H2O.ai Inc., Zest AI Inc., Squirro AG, aiXplain Inc., Seldon Technologies Limited, Symphony Ayasdi AI Inc., MindBridge Ai Inc., Arthur AI Inc.
Countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain
Regions: Asia-Pacific, Southeast Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
Time Series: Five years historic forecast and ten years forecast.
Data: Includes market size ratios, GDP proportions, expenditure per capita.
Data Segmentation: Historic and forecast data, competitive market shares, market segments by country and region.
Sourcing and Referencing: Data is sourced using endnotes.
Delivery Format: Word, PDF, or Interactive Report coupled with an Excel Dashboard
Added Benefits:
- Bi-Annual Data Updates
- Customization Options
- Expert Consultant Support
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2026 – 2030 |
| Estimated Market Value (USD) in 2026 | $1.61 Billion |
| Forecasted Market Value (USD) by 2030 | $3.8 Billion |
| Compound Annual Growth Rate | 24.0% |
| Regions Covered | Global |
Companies Featured
The companies featured in this Explainable AI in Banking market report include:
- Alphabet Inc.
- Microsoft Corporation
- Accenture plc
- International Business Machines Corporation
- Oracle Corporation
- SAP SE
- Cognizant Technology Solutions Corporation
- Moodys Analytics Inc.
- SAS Institute Incorporated
- Teradata Corporation
- Fair Isaac Corporation
- Tredence Inc.
- AlphaSense Inc.
- C3.ai Inc.
- H2O.ai Inc.
- Zest Artificial Intelligence Inc.
- Squirro AG
- aiXplain Inc.
- Seldon Technologies Limited
- Symphony Ayasdi AI Inc.
- MindBridge Ai Inc.
- Arthur AI Inc.
For more information about this report visit https://www.researchandmarkets.com/r/mx7jyz
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- Explainable AI in Banking Market
