Fintech platform revenues set for massive rise: Juniper
Fintech platform revenues for unsecured consumer loans issued using machine learning technology are set to jump by a whopping 960% globally over the next six years, according to new research from Juniper.
According to the latest report on the worldwide Fintech market from Juniper Research, revenues will rise to US$17 billion by 2021, with spending advancing rapidly due to the highly data-driven nature of the market, “meaning that AI integration is likely to spell substantial benefits”.
Juniper says that until recently, machine learning was too expensive and computationally time-intensive to break into the mainstream, while access to extensive data sets for algorithm training were limited.
Research author Steffen Sorrell says that presently, the ability to use GPU (graphics processing unit) hardware for processing massive and highly available data sets, along with unlimited affordable computing power in the form of distributed architecture, has opened the market to a swathe of disruptive new players.
Sorrell says machine learning — a subset of AI — has seen a “tremendous leap” in activity since 2011, with substantial increases in venture capital (VC) and R&D investment.
By way of example, Sorrell says two Fintech start-ups — Kabbage and ZestFinance — have collectively raised US$500 million in funding alone, while vendors analysed in his research report have spent a total of US$83 billion in R&D during 2015, with each of these vendors naming AI as a part of core strategy.
To read more, please click on the link below…