GVR Report cover Generative AI In Fintech Market Size, Share & Trends Report

Generative AI In Fintech Market Size, Share & Trends Analysis Report By Component (Service, Software), By Deployment (On-premises, Cloud), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68040-111-4
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Report Overview

The global generative AI in fintech market size was estimated at USD 888.8 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 36.1% from 2023 to 2030. Due to the growing use of artificial intelligence (AI) in the financial sector, the rising need for individualized financial advice, the increasing prevalence of fraud, and the growing complexity of the financial markets, the market is growing quickly. Task automation, better decision-making, risk reduction, fraud detection, and market data analysis are all efficiently performed by generative AI. As technology advances, even more advanced generative AI applications in the financial sector are anticipated.

U.S. generative AI in fintech market size and growth rate, 2023 - 2030

The rising availability of data is one of the primary elements leading to the rise of generative AI in the fintech business. Massive amounts of data are produced as more and more financial interactions and transactions are performed through digital channels, providing important insights into consumer behavior, market trends, and financial patterns. This abundance of data makes it possible for generative AI models to be trained and improved, resulting in outputs that are more precise and pertinent to the context.

Generative AI can generate synthetic data that simulates various financial scenarios, assisting in risk modeling and stress testing. It can also aid in training fraud detection algorithms by providing synthetic data that can be used to discover patterns of fraudulent activity. In addition, generative AI enables fintech businesses to provide customized services to each consumer, increasing customer happiness and engagement. Generative AI analyses customer data to provide personalized financial product suggestions.

Component Insights

In terms of component, the software segment dominated the market in 2022 with a revenue share of 62.49%. Trends and consumer behavior also influence the dominance of the software segment, and consumers are increasingly adopting digital solutions and want more individualized experiences. The software market enables fintech businesses to create unique solutions that address the preferences and demands of specific clients. The software category is predicted to grow fastest over the forecast period due to its flexibility and adaptability. Platforms for software-based generative AI are easily adaptable to shifting consumer preferences and expanding data quantities.

The service segment is estimated to register the highest CAGR of over 38% over the forecast period. The fraud detection and risk management service sector is experiencing a substantial movement towards AI-driven anomaly detection in the generative AI-powered fintech industry. Fintech organizations use generative AI algorithms to analyze enormous volumes of transactional and behavioral data to spot strange patterns and dubious behavior that might be signs of fraud or high-risk behavior. Anomaly detection models may be trained on various datasets owing to generative AI's capacity to produce synthetic data, which increases their accuracy and flexibility in response to changing fraud schemes.

Deployment Insights

In terms of deployment, the on-premises segment dominated the market in 2022 with a revenue share of 60.0%. Many financial organizations choose on-premises deployment of generative AI in fintech solutions for various reasons, including data security concerns, regulatory compliance requirements, and increased control over their systems. Customers are increasingly worried about the privacy of their data and are aware of where it is being held. On-premises deployment satisfies their preference for solutions that provide them with control over their data. The on-premises segment drives the market's expansion as demand for data security and compliance rises. Many businesses invest in on-premises generative AI systems because they understand the importance of securing crucially sensitive consumer data.

Using generative AI solutions on cloud platforms has become a significant trend in the quickly developing fintech business. Financial institutions are using the power of generative AI more and more to create personalized information that is realistic and customized, such as automated financial reporting, individualized investment advice, and bespoke client communications. These AI-driven systems can analyze enormous volumes of financial data in real time using the scalability and flexibility of cloud-based infrastructures, which results in better decision-making, better customer experiences, and more efficient operations. The fusion of generative AI with cloud technology promises to revolutionize the financial sector and drive further improvements in automation and personalization as the need for creative fintech solutions rises.

End-use Insights

In terms of end-use, the investment banking segment dominated the market in 2022 with a market share of 30.3%. Investment banks are adopting generative AI to simplify their processes and gain an advantage over rivals. These AI-driven systems can analyze big datasets, produce insightful results, and automate challenging financial modeling activities. Investment banks may enhance decision-making speed and accuracy, optimize portfolio management, and spot profitable investment possibilities more quickly by introducing generative AI into their operations. Generative AI is anticipated to play a significant role in influencing the future of financial analysis and strategy development as the need for data-driven and technologically sophisticated solutions in the investment banking industry continues to increase.

Retail banks are leading the way in implementing generative AI technology to improve client experiences, optimize processes, and maintain competitiveness in the fast-moving fintech sector. Consumer trends and behavior also impact the success of the retail banking sector. Customers increasingly use online and mobile banking services for convenience and ease of use. Retail banks deploy generative AI technologies to create intuitive, user-friendly interfaces, make individualized suggestions, and deliver seamless digital banking experiences. Due to the rising demand for digital banking services and the requirement for flawless client experiences, the retail banking market is anticipated to develop quickly in the coming years.

Application Insights

In terms of application, the compliance & fraud detection segment dominated the market in 2022 with a revenue share of around 19.1%. With the increased usage of generative AI applications, the fintech industry's compliance & fraud detection section is undergoing a significant shift. Financial institutions are increasingly turning to generative AI to improve compliance measures and expand their fraud detection skills. These advanced AI algorithms can analyze huge amounts of financial data, spot intricate trends, and quickly identify fraudulent activity. Fintech businesses may use generative AI for compliance and fraud detection to reduce risks, protect against fraudulent transactions, and maintain regulatory compliance, which will increase consumer and investor confidence in the financial ecosystem.

Global generative AI in fintech market share and size, 2022

Financial organizations increasingly use generative AI models to improve their predictive analysis skills. These advanced AI algorithms can analyze enormous volumes of financial history, spot hidden trends, and produce precise market trends, investment possibilities, and risk assessment predictions. Fintech organizations may make data-driven choices with increased accuracy and efficiency by integrating generative AI into their predictive analytic processes, which leads to smarter investment strategies, enhanced risk management, and better overall financial performance. Generative AI is anticipated to revolutionize predictive analysis as the fintech sector develops significantly, offering firms a competitive edge in the fast-moving financial landscape.

Regional Insights

Based on region, the North America region held the highest revenue share of 34.67% in 2022. North American financial institutions and fintech companies are becoming increasingly aware of the potential of generative AI, which can lead to a complete transformation of the financial services sector. Generative AI enhances consumer experiences and increases operational effectiveness in various areas, including personalized financial services, risk assessment, and fraud detection. In addition, the developed cloud infrastructure in the area and its data-driven philosophy favor the development and use of generative AI solutions in the fintech industry. North America is anticipated to continue its growth in the generative AI revolution in fintech as it evolves, spurring innovation, and determining the direction of financial services in the region.

Generative AI in Fintech Market Trends, by Region, 2023 - 2030

Asia Pacific is anticipated to emerge as the fastest-growing regional market, with the fastest CAGR of 44.2% over the forecast period. One significant trend in the Asia Pacific region for generative AI in the fintech business is the rising collaboration between established financial institutions and startups. Traditional banks and new fintech businesses have recently formed more collaborations and strategic alliances to use generative AI technology. Through these partnerships, major financial institutions' knowledge and client base will be combined with fintech startups' creativity and agility to create ground-breaking generative AI solutions that address a range of financial demands.

Key Companies & Market Share Insights

The market is quite competitive with the presence of so many well-known businesses. Agreements, expansions, partnerships, and joint ventures have all been employed by players. They are creating new solutions/products with faster speeds and enhanced features to diversify their product line and keep a significant market share. For instance, PayPal and Stripe's payment processing systems will utilize machine learning algorithms to detect and prevent unauthorized activity. As a result, users' financial information will be safer and more secure during online transactions.

In another instance,in June 2023, Bank of America and Palantir will utilize machine learning to analyze massive volumes of data and continually learn from trends in their fraud detection system. It will enable the system to spot suspicious activity and reduce financial fraud. Some prominent players in the global generative AI in fintech market include:

  • Open AI

  • Microsoft Corporation

  • Google LLC

  • Genie AI Ltd.

  • IBM Corporation

  • MOSTLY AI Inc.

  • Veesual AI

  • Adobe Inc.

  • Synthesis AI

  • Salesforce

Generative AI In Fintech Market Report Scope

Report Attribute


Market size value in 2023

USD 1.14 billion

Revenue forecast in 2030

USD 9.87 billion

Growth rate

CAGR of 36.1% from 2023 to 2030

Base year for estimation


Historical data

2017 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD million/billion, and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, deployment, application, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; UK; Germany; France; China; Japan; India; South Korea; Australia; Brazil; Mexico; Kingdom of Saudi Arabia (KSA); UAE; South Africa

Key companies profiled

Open AI; Microsoft Corporation; Google LLC; Genie AI Ltd.; IBM Corporation; MOSTLY AI Inc.; Veesual AI; Adobe Inc.; Synthesis AI; Salesforce

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Global Generative AI In Fintech Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global generative AI in Fintech market report based on component, deployment, application, end-use, and region:

  • Component Outlook (Revenue, USD Million, 2017 - 2030)

    • Service

    • Software

  • Deployment Outlook (Revenue, USD Million, 2017 - 2030)

    • On-premises

    • Cloud

  • Application Outlook (Revenue, USD Million, 2017 - 2030)

    • Compliance & Fraud Detection

    • Personal Assistants

    • Asset Management

    • Predictive Analysis

    • Insurance

    • Business Analytics & Reporting

    • Customer Behavioral Analytics

    • Others

  • End-use Outlook (Revenue, USD Million, 2017 - 2030)

    • Retail Banking

    • Investment Banking

    • Stock Trading Firms

    • Hedge Funds

    • Other Industries

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Australia

    • Latin America

      • Mexico

      • Brazil

    • Middle East and Africa

      • Kingdom of Saudi Arabia (KSA)

      • UAE

      • South Africa

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