The global financial technology market is expected to grow gradually and reach a market value of approximately $ 305 billion by 2025, growing at a compound annual rate of about 22.17% over the forecast period 2020-2025.
Fintech is a combination of technology and financial services that have transformed the way businesses operate. In the last few years, the financial technology sector has emerged considerably, resulting in the modification of businesses to a customer-centric approach. Therefore, find room in a large number of companies ranging from start-ups to technology companies and established companies around the world. With a collaborative or demanding approach, financial services companies and technology companies have taken reciprocal paths and progressed with innovative and disruptive techniques in a continually changing business scenario.
Fintech or financial technology is a novel advancement that is gaining prominence across the globe by replacing traditional financial services in various sectors such as payments, electronic commerce, banking, social commerce, wealth management and others. As e-commerce is spreading rapidly around the world, it succeeds the key application segment of the FinTech market, which is expected to grow with a superlative annual growth rate of about 12% until 2025.
With a large number of mobile users who have a penchant for online transactions, coupled with the fact that the implementation of FinTech significantly improves the customer experience by providing convenience in payments and delivery in the e-commerce, the global Fintech market demand will experience incredible growth in the future.
Infrastructure-based technology in the open platforms and application programming interfaces is modifying the future of the financial services industry, while the operational advancements offered by the automation of robotic processes (RPA), chatbots and distributed accounting technology (DLT) allow greater agility, efficiency and precision.
Market growth and trends:
Information on the adaptation trends of fintech in small and medium-sized enterprises (SMEs)
Adoption of fintech services has grown at a rapid rate in the last few years among clients. Fintech helps SMEs meet their financial needs, such as banking and payments, financial management, financing, and insurance. In Asia, SMEs are pivotal, registering about 42% of GDP and accounting for almost 50% of all jobs. Nonetheless, SMEs receive only 19% of total bank credit in 2017. According to World Bank statistics, increasing credit to SMEs is an hourly necessity, because the creation of at least 1 million new jobs are needed per month. to satisfy the growing Asian workforce.
With a global adoption rate of 25%, this market presents many growth opportunities and opportunities for fintech companies. In addition to credit financing, there are several ways that SMEs can benefit, such as using APIs and distributed accounting technologies to achieve process efficiency, are some examples where SMEs can benefit from the ecosystem of Fintech.
Market Drivers and Limitations:
• FinTech strengthens the security of financial data -
Cybersecurity is becoming a worrying challenge in information technology. Organizations are vulnerable to financial loss due to cyber-attacks, so they invest heavily in FinTech. FinTech not only ensures the security of financial data, but also instills convenient transactions, leading to smooth operations and perfect cash flow in the financial system.
• The growing demand for mobile banking applications:
In the contemporary world, each bank has its own mobile application that allows customers to transact online and transfer money to other users around the world. This creates a significant FinTech market for providers to capitalize on demand from various banks, old and new.
Sadly, the size of the FinTech market is overshadowed by government regulations with strict rules that limit the operability of FinTech applications. Also, there is a notable lack of human contact in these apps, which is sometimes combined with the additional convenience fees applicable to transactions, and this is quite evident from the fact that many accounts created in FinTech mobile apps are idle. However, the future foresees less stringent government rules, advanced data security and a greater preference for FinTech applications by people, which will drive the growth of demand for them.
Global fintech market can be segmented based on:
Based on technology, the market can be segmented into API, AI, Blockchain and Distributed Computing. Of these, significant growth is foreseen in the technologies like artificial intelligence and blockchain over the evaluated years. AI interfaces and chatbots have revolutionized customer service in recent years, and its augmenting business will allow AI-oriented fintech market to develop at a CAGR of around 21% in the next five years.
By Service, the global market comprises payment, fund transfer, personal finance, loans, insurance and wealth management.
By Application, the global fintech market is divided into banking, insurance, securities and others.
By Deployment Mode, the global fintech market is categorized as cloud and on-premises. The cloud segment accounted for the significant portion of the overall business, which is likely to expand further in the future.
Based on region, the global market is segregated into North America, Europe, South America, Asia-Pacific and Middle East and Africa. Among them, North America was the leading revenue contributor to the global business in 2019 and is presumed to continue its dominion in the coming years as well which can be attributed to increased adoption and development of prominent technologies in the fintech sector in the region.
Opportunities abound in the changing landscape of fintech in the Asia-Pacific region, and investment is rushing to exploit them. Open banking and other regulatory policies are modifying financial services business, with external service providers ready to access customer information from formerly owned banks. China and India are experiencing much higher penetration rates for fintech services in this vicinity.
Key players in the market:
ZhongAn, Oscar, Qufeng, Avant, Lufax, Atom Bank, Kreditech, Kabbage, JD Finance, SoFi, Nubank, Klarna, Square and Funding Circle are some of the other market players looking for market share in FinTech.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Fintech Market, By Technology
6.1.2 Artificial Intelligence
6.1.4 Distributed Computing
6.1.5 Market Size Estimations & Forecasts (2019-2024)
6.1.6 Y-o-Y Growth Rate Analysis
6.1.7 Market Attractiveness Index
6.2 Fintech Market, By Application
6.2.4 Market Size Estimations & Forecasts (2019-2024)
6.2.5 Y-o-Y Growth Rate Analysis
6.2.6 Market Attractiveness Index
6.3 Fintech Market, By Service
6.3.2 Fund Transfer
6.3.3 Personal Finance
6.3.6 Wealth Management
6.3.7 Market Size Estimations & Forecasts (2019-2024)
6.3.8 Y-o-Y Growth Rate Analysis
6.3.9 Market Attractiveness Index
6.4 Fintech Market, By Deployment Mode
6.4.3 Market Size Estimations & Forecasts (2019-2024)
6.4.4 Y-o-Y Growth Rate Analysis
6.4.5 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Technology
7.2.3 By Application
7.2.4 By Service
7.2.5 By Deployment Mode
7.3.1 By Country
18.104.22.168 Rest of Europe
7.3.2 By Technology
7.3.3 By Application
7.3.4 By Service
7.3.5 By Deployment Mode
7.4 Asia Pacific
7.4.1 By Country
22.214.171.124 South Korea
126.96.36.199 South East Asia
188.8.131.52 Australia & NZ
184.108.40.206 Rest of Asia-Pacific
7.4.2 By Technology
7.4.3 By Application
7.4.4 By Service
7.4.5 By Deployment Mode
7.5 Latin America
7.5.1 By Country
220.127.116.11 Rest of Latin America
7.5.2 By Technology
7.5.3 By Application
7.5.4 By Service
7.5.5 By Deployment Mode
7.6 Middle East and Africa
7.6.1 By Country
18.104.22.168 Middle East
7.6.2 By Technology
7.6.3 By Application
7.6.4 By Service
7.6.5 By Deployment Mode
8. Key Player Analysis
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.6 Atom Bank
8.9 JD Finance
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures