Intelligent Virtual Assistant (IVA) Based Banking Market Expected to Reach $11.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Intelligent Virtual Assistant (IVA) Based Banking Market," The intelligent virtual assistant (iva) based banking market was valued at $1.3 billion in 2021, and is estimated to reach $11.2 billion by 2031, growing at a CAGR of 24.5% from 2022 to 2031.

Access to high-speed internet and digitalization of banks resulting in adoption of intelligent virtual assistants (IVAs) or intelligent virtual agents drive the global intelligent virtual assistant (IVA) based banking market growth. Furthermore, rise in penetration of smartphones across the globe and development of the virtual assistants AI in emerging countries are the major factors driving the growth of the market. However, rise in costs of IT infrastructure hampers the growth of the market. Moreover, increase in reliance on virtual assistants for various online operations on digital platform is driving the growth of the market.

Furthermore, the global intelligent virtual assistant (IVA) based banking market is developing rapidly with the increasing development by R&D sectors, and exhibits high growth potential, due to rise in need for operational efficiency globally. For instance, Verint released the Verint Intelligent Virtual Assistant Professional (IVA Pro) Package in April 2021, a low-code conversational artificial intelligence (AI) with a production-ready chatbot to divert calls and provide customer service.

By user interface, the text-to-text segment acquired a major share of intelligent virtual assistant (IVA) based banking market. This was attributed to the fact that majority of businesses have turned to SMS marketing to reach out to interested clients during the pandemic. SMS is a highly dependable technique to contact the target audience because most customers have their phones with them all the time.

Region wise, North America is expected to grow at a significant rate during the forecast period. The increasing adoption of new technology in notable nations such as the U.S., together with the expanding prevalence of smartphones in the area, is driving the region's market growth. Large corporations are investing more effort into adding complex and distinctive features to their products in order to attract more customers, which is boosting the growth of intelligent virtual assistant (IVA) based banking market in the U.S.

The demand for intelligent virtual assistant (IVA) based banking industry has increased considerably during the COVID-19 pandemic. This is attributed to increase in adoption of cloud-based digital platforms by the banking sector, which has aided the customers to know digital banking. Moreover, intelligent virtual assistant (IVA) based banking market trends witnessed a rise in pandemic, and is anticipated to remain high during the forecast period. Thus, these factors promoted the growth of the intelligent virtual assistant (IVA) based banking industry during the pandemic situation.     

KEY FINDINGS OF THE STUDY

• By product, the chatbots segment led the highest intelligent virtual assistant (IVA) based banking market share, in terms of revenue in 2021.
• On the basis of user interface, the automated speech recognition segment is expected to exhibit the fastest growth rate during the forecast period.
• Region wise, North America generated the highest revenue of intelligent virtual assistant (IVA) based banking market size in 2021.  

The key players operating in the intelligent virtual assistant (IVA) based banking market analysis include Alphabet Inc., Amazon.com Inc., Artificial Solutions, IBM, Nuance Communications Inc., CSS Corp., eGain Corporation, Oracle, True Image Interactive, Inc. and Verint Systems Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.