FinTech AI Revenue to Rise
FinTech companies are investing heavily in artificial intelligence (AI), but meaningful revenue contributions from AI-led products are expected to emerge only from FY28, according to an assessment by Emkay. The outlook suggests that the sector is still in the investment and capability-building phase.
The growing adoption of AI across financial technology is creating opportunities in areas such as lending, customer service, fraud detection, risk assessment and financial advisory.
However, developing AI capabilities involves significant expenditure on technology infrastructure, data, specialised talent and governance. As a result, increased AI adoption does not immediately translate into higher revenue.
The FY28 outlook indicates that FinTech companies may need several years to move from experimentation and deployment towards commercially scalable AI products.
Financial institutions are also increasingly partnering with FinTech companies to integrate AI capabilities into their operations. Such partnerships can help banks and other financial institutions improve efficiency while providing FinTech firms with access to larger customer and transaction ecosystems.
AI-based lending and underwriting can improve credit assessment by analysing large volumes of information. Fraud detection systems can identify unusual transaction patterns, while AI-powered customer service can automate routine interactions.
However, financial services require a high level of accuracy and accountability. AI products therefore need strong data governance, model validation, cybersecurity and regulatory controls before they can be deployed at scale.
For FinTech companies, monetisation will also depend on whether AI solutions produce measurable business outcomes. Cost reduction, improved customer acquisition, better risk decisions and increased transaction activity could provide important sources of commercial value.
The emergence of AI revenue will therefore depend not simply on technology adoption but on the ability to convert AI capabilities into reliable, scalable financial products.
Risk management will remain an important consideration. Poorly governed AI models can create inaccurate decisions, customer harm, compliance problems and reputational risks.
The sector’s current investment cycle could therefore be viewed as a foundation-building phase. Companies are developing technology, data capabilities and talent before expecting significant commercial returns.
For banks and FinTech companies, the key challenge will be balancing AI investment with disciplined financial management and effective governance.
The expected FY28 revenue milestone highlights an important point: AI adoption in financial services may require sustained investment before its commercial benefits become significant.
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