Autonomous Finance Market Expected to Reach $82.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Autonomous Finance Market, By Solution (Asset Management, Auto Payments, Digital Identity Management System, Liquidity Management, Loan Application Processing, and Others), and By End User (Banks, Financial Institutions, Insurance Companies, and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032". The autonomous finance market was valued at $15.8 billion in 2022, and is estimated to reach $82.6 billion by 2032, growing at a CAGR of 18.2% from 2023 to 2032.

Autonomous finance refers to the use of advanced technology, such as artificial intelligence and machine learning, to automate and streamline financial processes. It harnesses the power of algorithms and data analysis to provide personalized financial planning and automate transactions and investments. By leveraging technology, autonomous finance aims to enhance efficiency, decision-making, and ultimately, the overall financial well-being of individuals.

Furthermore, autonomous finance is revolutionizing the way individuals manage their finances. With the help of cutting-edge technology, individuals can now delegate everyday financial tasks, such as budgeting, investing, and saving, to automated systems. These systems analyze personal financial data, identify patterns, and make recommendations based on individual goals and risk tolerance.

Advancements in artificial intelligence (AI) are driving the growth of the autonomous finance market. AI is increasingly improving its ability to analyze vast amounts of financial data, identify patterns, and make real-time decisions. This enables autonomous finance systems to provide more accurate and timely financial advice, investment strategies, and risk management. Furthermore, consumer demand for convenient and personalized financial services is a key driver behind the rapid growth of the autonomous finance market. In addition, cost efficiency and risk management of autonomous finance systems are significant drivers of the growth of the autonomous finance market. Financial institutions and businesses are increasingly turning to autonomous finance solutions to streamline their operations and reduce operational costs. Automation can handle repetitive and time-consuming tasks, such as data analysis and processing, with precision and speed, leading to substantial cost savings.

However, data privacy and security concerns have emerged as significant barriers for the growth of the autonomous finance market. The autonomous finance market relies heavily on collecting and analyzing vast amounts of personal and financial data to provide tailored financial recommendations and services. The abundance of sensitive information makes it a prime target for cyberattacks and data breaches, hampering the autonomous finance market growth. On the contrary, increase in the adoption of FinTech is expected to offer lucrative growth opportunities to the autonomous finance market trends in the upcoming years. FinTech innovations have transformed the way consumers manage and interact with their finances, from mobile banking apps to digital payment platforms. These technologies create a seamless and interconnected financial ecosystem, and autonomous finance can seamlessly integrate with these systems.

On the basis of solution, the auto payments segment acquired a major share in 2022. The growth of the auto payments segment is propelled by increase in the integration of smart technologies. These technologies enable automatic and seamless payment processes. In addition, rise of contactless payment methods and mobile apps makes it easier for people to make transactions, enhancing convenience and efficiency. However, the liquidity management segment is the fastest-growing segment during the forecast period. The growth of the liquidity management segment is being propelled by the need for businesses and individuals to effectively manage their cash flow.

Region-wise, North America dominated the autonomous finance market in 2022, owing to increase in adoption of artificial intelligence and machine learning technologies in the financial sector, growing demand for personalized financial services, need for more efficient and cost-effective financial management, and development of advanced fintech solutions. However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. This is attributed to rapid digitalization, vast and diverse consumer base, and increase in penetration of smartphones and internet connectivity in Asia-Pacific.

The COVID-19 pandemic had a positive impact on the autonomous finance market size. It accelerated the adoption of digital financial services and automation. With lockdowns and social distancing measures, people turned to online banking, robo-advisors, and automated budgeting tools to manage their finances remotely. This surge in demand for digital financial solutions boosted the growth of the autonomous finance sector, as more individuals and businesses sought automated ways to handle their money.     

Key Findings of the Study

• On the basis of solution, the auto payments segment accounted for the highest autonomous finance market share, in terms of revenue in 2022.
• On the basis of end user, the banks segment attained the highest market share in 2022.
• On the basis of region, North America generated the highest revenue in 2022.  

The key players operating in the autonomous finance market analysis include Signzy Technologies Private Limited, Roots Automation, ReGov Technologies Sdn Bhd, Fennech Financial, HighRadius, Oracle, Auditoria.AI, Vic.ai, Emagia, and NICE Actimize. These players have adopted various strategies to increase their market penetration and strengthen their position in the autonomous finance industry.