According to Analytics Insight, AI in the BFSI sector will soon cross a staggering US$48 billion. According to Analytics Insight, the Global Artificial Intelligence Market Revenue in the Banking Sector will reach USD48.3 billion by 2025, up from USD13.7 billion in 2019, and will rise at a CAGR of 28.6% from 2019 to 2024. The BFSI industry has always been resistant to change, especially when it comes to technology. However, in recent years, there has been an explosion in AI adoption in the financial sector, which has realigned the industry’s operations and processes.
Customers are at the heart of the financial and banking industries, and in today’s world, customers are clamouring for tailored, simpler, and digital services.
People have migrated to the digital realm, resulting in the emergence of digital banking and open banking. The BFSI sector has been able to meet the demands of a smarter customer base thanks to artificial intelligence. This dramatic growth of AI in banking would draw more audiences and pave the way for innovations in a post-pandemic world.
Fintech companies have aided the banking industry’s development by offering digital assistance and adhering. The BFSI market has benefited from AI’s improved operating performance, intelligent automation, and customization.
The banking industry has benefited greatly from conversational AI. It strengthens the customer experience, allows for cost savings, and alleviates workers of routine tasks. Fraud detection is another advantage of AI implementation in the financial industry. In terms of accurate, real-time fraud prediction and detection, AI has been generally accepted and appreciated.
According to a Business Today report, the RBI’s annual report announced a big surge in banking frauds in the fiscal year 2019-20. We must not forget that, with the implementation of disruptive technologies, cyberattacks have become more sophisticated. As a result, AI is a necessary move in the financial sector’s combat against data breaches and fraud.
The banking sector’s future with AI is intelligent and creative. The banking industry will be able to serve a wider audience with minimal human interaction and optimum productivity thanks to AI infrastructure.