Global Autonomous Finance Market Size, Share & Industry Trends Analysis Report By Solution, By End-Use (Banks, Financial Institutions, Healthcare, Insurance Companies, Telecom, and Others), By Regional Outlook and Forecast, 2022 - 2028
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Get in-depth analysis of the COVID-19 impact on the Autonomous Finance Market
Market Report Description
The Global Autonomous Finance Market size is expected to reach $33.3 billion by 2028, rising at a market growth of 13.6% CAGR during the forecast period.
Self-learning software agents that optimize front-, middle-, and back-office operations control most of the procedures and activities in an autonomous financial function. In addition to being fully automated, an autonomous finance department may give enhanced real-time and predictive insights, simple compliance, and more flexibility in financial planning. But to implement this transition, CFOs require a robust technology roadmap and a new way of thinking. It depends on self-learning software agents.
Autonomous finance executives gravitate more and more toward autonomous financial solutions because they can automate and improve corporate workflows, operations, and procedures. The expansion of autonomous financial operations may be ascribed to numerous advantages offered to firms, including cost-effectiveness, real-time data analytics & reporting, a decrease in system downtime, and scalability in operations without adding more employees.
Artificial intelligence (AI), cloud computing, and robotic process automation (RPA) are technologies used to construct digital processes and improve the consumer experience while receiving digital and autonomous financial services. Early adopters are predicted to get a competitive edge thanks to autonomous finance fintech organizations' technical capabilities. 89.0% of finance professionals in the BFSI sector feel that businesses who embrace autonomous financial operations early would gain a significant competitive edge over their counterparts, according to receeve GmbH, a debt recovery, and collection platform.
Several financial functions, including accounting, loan application processing, asset management, and liquidity management, now use autonomous finance. As businesses unite to enhance customer experience and technological capabilities, the autonomous finance industry is anticipated to expand. Additionally, the pandemic hastened to shift consumer expectations for digital and omnichannel banking services. The capacity to access financial services remotely was the main driver of this transformation. As a result, market growth is anticipated to be propelled by the acceleration of digitalization and the need for companies to adapt to changing consumer requirements.
COVID-19 Impact Analysis
The COVID-19 pandemic has affected practically all sectors worldwide. During the early phases of the pandemic, many production and research facilities throughout the world were compelled to cease operations. To slow the pandemic's rapid spread, state and national governments instituted lockdown measures and made sure social distance rules were followed. The commercial launch of pharmaceutical and other businesses was also significantly delayed due to the financial crisis that immediately followed the pandemic. As a consequence, the revenue of various small and medium-sized enterprises significantly decreased. Due to COVID-19, the Financial Services Industry (FSI) saw substantial changes. The popularity of digital platforms substantially increased during the pandemic as automation emerged as a crucial trend, and customers of all ages preferred digital interactions with enterprises.
Market Growth Factors
Factors Increasing Artificial Intelligence (AI) Use in the BFSI Industry
Artificial intelligence (AI) in banking, financial services, and insurance (BFSI) is expected to grow, leading to a significant increase in the global autonomous finance market throughout the projection period. The industry's growing emphasis on enhancing customer satisfaction and retention will also contribute to the rise. End Users, such as Banks, Insurance Companies, and Financial Institutions, have started integrating automation into their products to speed up routine financial operations like insurance, bill payment, and subscription renewal. Such machine learning and AI-based solutions can understand user behavior and provide accurate financial advice thanks to advanced algorithms.
Utilizing Financial Apps More Will Help Reduce Human Error
Applications for financial services nowadays are customized to a user's specific financial requirements. These applications independently create and carry out financial plans depending on the user's age, goals, bank balances, risk tolerance, and other traits. A financial service application's primary goal is to reduce the likelihood of human errors and inefficiencies. It also improves investment allocation by entrusting sophisticated algorithms with tasks like automating bill payments and managing portfolios. Numerous venture capital organizations are concentrating on investing in autonomous financial solutions because of the enhanced growth potential of these products in the Banking, Financial Services, and Insurance (BFSI) industry.
Market Restraining Factors
Lack of Advanced Communication Technologies in Developing Regions
The success of smart finance technologies is dependent on technological innovation and operational effectiveness. Several countries in the Asia Pacific, the Middle East, Africa, and Latin America are impeded by a lack of essential technology, such as telecom and networking infrastructure, and are unable to quickly implement smart projects due to a variety of circumstances, such as a low budget and a low literacy rate. Several countries have yet to mature or even adopt 4G technology, even though countries like China have completed 5G experiments.
Based on the solution, the autonomous finance market is segmented into Asset Management, Auto Payments, Digital Identity Management Systems, Liquidity Management, Loan Application Processing, and Others. The asset management segment generated the significant revenue share in the market during 2021. Algorithms are used in autonomous asset management to manage assets and portfolios automatically. The main driver of category development is autonomous asset management's capacity to mimic human decision-making skills while locating the optimal execution rates for deals.
Based on end-use, the autonomous finance market is divided into banks, financial institutions, healthcare, insurance companies, telecommunications, and others. The telecom segment is registering the promising growth rate during the forecast period. The telecom industry's networks have become more complicated to support emerging technologies like software-defined wide-area networks and network function virtualization.
|Market size value in 2021||USD 13.9 Billion|
|Market size forecast in 2028||USD 33.3 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 13.6% from 2022 to 2028|
|Number of Pages||196|
|Number of Tables||320|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling|
|Segments covered||Solution, End-use, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on region, the Autonomous Finance Market is divided into North America, Europe, Asia Pacific, and LAMEA. In 2021, North America led the market for autonomous finance and generated a higher revenue share. The environment that supports the early adoption of novel technologies, particularly autonomous banking, is unique to the North American area. In addition, governments strongly emphasize fostering effective governance and a digitized, sustainable financial infrastructure. As a result, American businesses are working together to improve digital capabilities.
Free Valuable Insights: Global Autonomous Finance Market size to reach USD 33.3 Billion by 2028
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Oracle Corporation, NICE Ltd., HighRadius Corporation, Signzy Technologies Private Limited, Roots Automation, Inc., ReGov Technologies Sdn Bhd, Fennech Financial Ltd, Auditoria.AI, VIC.AI and ViralGains, Inc.
Scope of the Study
Market Segments Covered in the Report:
- Auto Payments
- Digital Identity Management System
- Loan Application Processing
- Liquidity Management
- Asset Management
- Financial Institutions
- Insurance Companies
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Oracle Corporation
- NICE Ltd.
- HighRadius Corporation
- Signzy Technologies Private Limited
- Roots Automation, Inc.
- ReGov Technologies Sdn Bhd
- Fennech Financial Ltd
- ViralGains, Inc.
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What would be the size of the Autonomous Finance Market by 2028?
The Autonomous Finance Market size is projected to reach USD 33.3 billion by 2028.
What are the key driving factors and challenges in the Autonomous Finance Market?
Factors Increasing Artificial Intelligence (AI) Use in the BFSI Industry are driving the market in coming years, however, Lack of Advanced Communication Technologies in Developing Regions restraints the growth of the market.
What are the major top companies in the competitive landscape?
Oracle Corporation, NICE Ltd., HighRadius Corporation, Signzy Technologies Private Limited, Roots Automation, Inc., ReGov Technologies Sdn Bhd, Fennech Financial Ltd, Auditoria.AI, VIC.AI and ViralGains, Inc.
Which segment is leading the market in 2021?
The Auto Payments market is leading the segment in the Global Autonomous Finance Market by Solution in 2021; thereby, achieving a market value of $9.6 billion by 2028.
Which region dominated the Autonomous Finance Market in 2021?
The North America market dominated the Global Autonomous Finance Market by Region in 2021; thereby, achieving a market value of $10.9 billion by 2028.