Fintech As a Service Market is Anticipated To Touch USD 676.9 Billion By 2028 By CIOTechOutlook Team

Fintech As a Service Market is Anticipated To Touch USD 676.9 Billion By 2028

CIOTechOutlook Team | Saturday, 12 August 2023, 02:14 IST

Fintech as a Service (FaaS) Market is anticipated to grow significantly, with predictions indicating a rise from USD 310.5 billion in 2023 to USD 676.9 billion by 2028, exhibiting a compound annual growth rate of 16.9%, during the forecast period. The introduction of cloud computing technology, which will enable operational flexibility and scalability for enterprises, as well as rising market demand for effective compliance and regulatory solutions are some of the reasons driving the growth of the FaaS market.

By enabling financial institutions to automate procedures, enhance customer experience, and cut costs, AI and ML have completely changed the Fintech sector. Applications of AI and ML in Fintech include risk management, fraud detection, customer assistance, and financial consulting. All-encompassing customer service can be offered via AI-powered chatbots, and ML algorithms can evaluate vast volumes of data to spot fraudulent activity. By examining client behavior and transaction data, these systems can instantly spot suspect activity and stop fraudulent transactions. These tools can improve consumer satisfaction, lower the risk of fraud, and aid in company decision-making. As a result, the adoption of FaaS solutions will heavily rely on AI/ML technology.

In the fintech sector, cloud computing has gained popularity. In order to store, manage, and process data, cloud computing entails employing remote servers that are housed on the Internet. In the context of finance as a service, cloud computing refers to the use of cloud-based infrastructure and services to offer financial services to independent developers, companies, and consumers, such as payments, loans, and asset management. Financial institutions can adapt swiftly to shifting market circumstances and client needs by scaling up or down based on demand using cloud solutions without considerable capital investment in hardware and software.