Voice Banking Market Expected to Reach $3.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Voice Banking Market By Component (Solution, Services), By Deployment Mode (On-Premise, Cloud), By Technology (Machine Learning, Deep Learning, Natural Language Processing, Others), By Application (Banks, NBFCs, Credit Unions, Others): Global Opportunity Analysis And Industry Forecast, 2022-2031" The voice banking market was valued at $984.58 million in 2021, and is estimated to reach $3.7 billion by 2031, growing at a CAGR of 14.5% from 2022 to 2031.

Voice banking is the technology powered by AI that allows users to access banking through their words or voice commands. A bank staff and a customer can communicate via voice call through voice banking. In addition, consumers may use a laptop, tablet, or smartphone to speak with their bank via voice banking while at home. It uses live voice call to link a client with a banker or financial advisor.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, In December 2021, Emirates NBD, a leading banking group in the LAMEA region is offering voice banking with Amazon Alexa in the UAE. The Amazon Alexa App is now available on both UAE iOS App and Google Play stores. Emirates NBD customers can enable the Emirates NBD banking skill on their Alexa App and access details of their recent Emirates NBD account and credit card transactions using conversational language as well as listen to market briefings through any Amazon Alexa-enabled device. This service is part of the bank’s continued efforts to offer value-added banking and utilizes application program interfaces (APIs) built in line with established open banking standards, allowing exchange of financial information between banks and third-party providers such as Amazon while upholding strict security and privacy guidelines for users. With the help of this partnership the companies delivered more personal approach to voice banking that build customer and bank relationship. Which provided a strategic advantage to the company and voice banking market size.

On the basis of application, the banks segment is the highest growing segment. This is attributed to the banking institutions provide voice banking which generally involves advice and execution of transactions on behalf of affluent clients. Moreover, banks also help with financial planning, manage client portfolios, and performs a variety of other financial services in relation to a client’s private financing choices with the help of voice banking.

Based on region, North America attained the highest growth in 2021. This is attributed to the voicebots are emerging as a game changer in banking and financial services. As an industry that’s always been a forerunner in adopting innovative technology, Voicebot is helping them meet customer expectations in the best possible way. In addition, as per cognizant survey, customer behavior is changing from using the eyes to read text and fingers to swipe, to using voice and ears to talk and listen.   

COVID-19 had a positive impact on the voice banking market growth. Rapid adoption of digitalization in the banking sector during the pandemic helped to grow the voice banking market. Moreover, to improve the security features in the banking platform, many banks adopted machine learning to predict fraud even before it happens. In addition, AI in voice banking solutions possesses extreme capabilities to reduce account opening time and operational costs. Furthermore, in the approaching years, it is anticipated that this aspect will present the voice banking industry with numerous, very lucrative prospects.

Key Findings of the Study

• By component, the solution segment led the voice banking market in terms of revenue in 2021.
• By deployment mode, the on-premise segment accounted for the highest voice banking market share in 2021.
• By technology, the natural language processing segment accounted for the highest voice banking market share in 2021.
• By region, the North America segment accounted for the highest voice banking market share in 2021

The report analyzes the profiles of key players operating in the voice banking market such as Acapela Group, Axis Bank, BankBuddy, Central 1 Credit Union, DBS Bank, Emirates NBD Bank, HSBC, IndusInd Bank, NatWest Group and U.S. Bank. These players have adopted various strategies to increase their market penetration and strengthen their position in the voice banking market.