Natural Language Processing or NLP is another technical term that keeps popping up when discussing fintech and insurance industry trends. Recent reports show that the NLP market is expected to reach a CAGR of 19.7% during 2019–2024. From this figure alone, we can infer that the growth of the NLP market is picking up pace.
Valued at $8.3 billion back in 2018, the use of NLP became widespread in the banking, financial services, and insurance (BFSI) sector. However, this doesn’t come as a surprise since the NLP technology has proven helpful in dealing with unstructured data in huge sectors. Now more than ever, companies are turning to NLP to extract valuable data insights, make informed business decisions, and provide better experiences and financial solutions to customers.
Additionally, as the NLP market grows, companies are relying more on conversational bots or virtual assistants. Through NLP, chatbots can now bring businesses and customers closer without too much hassle. These bots can help with business processes — especially in the customer service aspect — as they are capable of dealing with numerous languages. Experts also believe that chatbots will pave the way to accurate and swift lead generation because they can identify potential customers in social media and interact with them just like a human agent would.
By 2024, the NLP market is forecasted to sit at $22.9 billion. By that time, companies would be competing in the automated, digitally-driven world and traditional models might be shunned in order to survive. As such, the booming NLP market also indicates positive trends in automation. Meaning, financial service providers will be looking at decreased operational costs and human error, improved products/services, and increased business growth rate in the near future.