At a compound annual growth rate of 20.3%, the size of the worldwide Fintech (Financial technology) market is projected to reach $698.48billion in 2030.
The key factors such as maturing digital capabilities and increased venture capital funding is driving the global fintech market. Also, rising technological advancements like mobile wallets, digital currency, paperless lending, and the widespread use of e-commerce platforms, along with an increase in smartphone adoption have paved the way for a revenue boost in global fintech market.
Covid-19 Impact & Market Status
Due to the global expansion in customer usage and adoption of online and digitalized financial product lines, the COVID-19 pandemic has had a tremendous influence on the fintech industry. Additionally, lenders and investors are contributing more money to Fintech marketes' capital and technology budgets. For the eradication of poverty and the expansion of the economy, access to inexpensive financial services is essential. As a result, Fintech advancements are making it feasible to reach more people, lower the cost of providing services, and lessen the necessity for in-person encounters during a pandemic. In turn, given the current global health crisis, this has turned into one of the main development causes for the fintech market.
Artificial Intelligent Segment Will Lead The Market During The Forecast Period
The artificial intelligence, blockchain, artificial programming interface, distributed computing, data analytics, and robotic process automation segments make up the global fintech market by technology. Throughout the projected period, the AI segment is anticipated to develop at the fastest rate. AI has emerged as a crucial component of the FinTech sector in terms of gathering data, processing information, and developing customer-focused products. Global banking organizations are deploying advanced risk analytics and fraud detection tools that are powered by AI in order to prevent the loss of sensitive consumer data. Advanced risk analytics and fraud detection are being used more frequently, which is helping the segment's market share increase.
On-Premise Segment Will Maintain Lead Throughout The Forecast Period
The global fintech market is segmented into on-premise and cloud-based deployment types. Because of the practical choices it offers for the product's substantial customization, the on-premises segment generated the most income. On-premise implementation has been adopted by a number of marketes.
Payment Segment To Have The Highest Market Share
The market can be divided based on services into payment, fund transfers, personal finance, loans, insurance, and others, such as equity, wealth management, etc. During the projection period, the market is anticipated to be dominated by the payment sector, although the insurance segment is anticipated to experience the fastest growth.
The Banking Segment Contributed To The Largest Market Share
Depending on the application, the market is further divided into banking, insurance, securities, and other categories including e-commerce and ITR. The banking sector accounted for the largest share of the market throughout the projection period, and it is anticipated that it will continue to rule the industry. E-wallets and payment interfaces are being developed by banks and start-ups in this industry to sustain services and provide a better and quicker customer experience.
North America Holds A Prominent Share Of The Global Fintech Market
Asia-Pacific, Europe, North America, South America, and the Middle East & Africa are just a few of the regions that make up the FinTech market's geographical segments. North America represents a significant portion of the global fintech industry as a result of the expansion of e-commerce platforms and the rising demand for cutting-edge technology solutions to secure user financial data and records. The fintech market in Asia-Pacific is anticipated to grow quickly over the course of the forecast period as a result of key players expanding their investments in the region to offer solutions and as a result of users in the region using mobile apps and digital platforms at an increasing rate.
Growing customer demand for digital, mobile, interactive, and personalized financial services has improved reliance on fintech further propelling the global fintech market.
Fintech has risen dramatically with new comers investing and existing market players coming up with latest innovations increasing its scope in different applications and industries.
Change in financial structure and organization of financial service providers, alternative finance services emerging in the market such as crowd-funding, evolving payment methods such as cashless and digital currencies, organisations making efforts to reach financial services to vulnerable and excluded customers, AI in finance, changing financial regulations are some key drivers of global fintech market.
Owing to benefits such as price, convenience, access, choice, and community return on innovation investment, favourable regulatory environment, fintech is experiencing rapid adoption, thus fostering remarkable progress of global fintech market.
Fintech attempts to enhance and automate the supply of financial services, is the term for the application of new technical breakthroughs to goods and services in the financial market. Additionally, it uses a variety of technologies to compete with current traditional financial methods in the provision of financial services, including blockchain, artificial intelligence (AI), data analytics and application programming interface (API).
The global Fintech market is projected to reach USD 35.105 billion by 2029, growing at a CAGR of 34.4% over the forecast period (2022–2029).
Due to the high number of mobile users who enjoy making online purchases and the fact that Fintech implementation greatly enhances the customer experience by offering simplicity in payments and delivery in e-commerce, the demand for Fintech products will continue to soar in the coming years. The factors such as rising acceptance of IOT devices, more investments in technology-based solutions, favorable government laws, and rising popularity of digital payments are all anticipated to positively affect the global fintech market in the years to come.
It is anticipated that the need for fintech among marketes would increase as banks and insurance organizations increasingly use cutting-edge technologies in their corporate operations rather than employing older operating systems. In order to strengthen their position in the market and offer cutting-edge financial technology solutions, investors are also working with wealth management solution providers. Fintech solution providers may expect this to present them with several chances.
FinTech has emerged as one of the major industry drivers since it enables us to offer practical services and contributes to maintaining openness in terms of financial inclusions. The growth of the global fintech market is significantly fueled by partnerships that are forming more frequently between national regulators and financial institutions, as well as by the numerous financial institutions that are using cutting-edge technology to provide customers with integrated and value-added services.
The global fintech market expansion is hampered by identity, security, and data privacy issues as well as by the inconsistent and varying legal frameworks across different jurisdictions. Also, inflexible legacy systems, risk-averse budgeting and decision processing, and siloed channels barriers to entry hampering overall progress of global fintech market. On the other side, growing middle class populations, increased urbanization, higher levels of literacy, and a younger generation that is more tech aware present major prospects for fintech technology companies to extend their product lines. Additionally, during the projected period, significant prospects are anticipated due to the General Data Protection Regulation (GDPR) standards' mandatory application implemented by regulatory bodies.
The major companies in the global fintech market are Ant Financial, Oracle, Microsoft, IBM Corporation, Goldman Sachs, Cisco Systems, Blockstream Corporation, Bankable, NVIDIA Corporation, Tata Consultancy Services, Qudian, Sofi Lufax, Avant, Klarna, and others. To remain competitive in the market, these marketes are creating cutting-edge technologies and introducing new items. The development of new services and mergers and acquisitions are two other competitive strategies.
Latest Innovations In The Global Fintech Market: A Snapshot:
- Meritsoft, a financial software provider based in Dublin, was to be purchased, according to a March 2021 announcement by Cognizant.
- WorldFirst purchased the Australian business CurrencyVue in March 2020 in order to expand its global trading platform.
Fintech (Financial technology) Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 35.105 billion|
|Growth Rate||CAGR of 34.4 % during 2021-2028|
|Segment Covered||Technology, Application, Deployment, Service, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Ant Financial, Oracle, Microsoft, IBM Corporation, Goldman Sachs, Cisco Systems, Blockstream Corporation, Bankable, NVIDIA Corporation, Tata Consultancy Services, Qudian, Sofi Lufax, Avant, Klarna, and others.|
Key Segments of the Global Fintech Market
Technology Overview, 2019-2029 (USD Billion)
- Artificial Intelligence
- Artificial Programming Interface (API)
- Distributed Computing
- Data Analytics
- Robotic Process Automation
Deployment Overview, 2019-2029 (USD Billion)
Service Overview, 2019-2029 (USD Billion)
- Funds Transfer
- Personal Finance
- Wealth Management
Application Overview, 2019-2029 (USD Billion)
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa
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