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Global Fintech Market Research Report - Segmentation By Technology (API; AI; Blockchain; Distributed Computing), Service (Payment; Fund Transfer; Personal Finance; Loans; Insurance; Wealth Management), Application (Banking; Insurance; Securities; & Others), Deployment Mode (Cloud & On-premises), Region, Competition, Forecast & Opportunities (2022 - 2027)

Published: January, 2022
ID: 8751
Pages: 180
Formats: report pdf report excel report power bi report ppt

Fintech Market Size & Growth Analysis (2022 - 2027)

The global financial technology market is expected to grow gradually and reach a market value of approximately $324 billion by 2026, growing at a compound annual rate of about 25.18% over the forecast period 2022-2027.

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 2026.

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.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2021 – 2027

Base Year

2021

Forecast Period

2022 - 2027

CAGR

25.18%

Segments Covered

Technology, Service, Application, Deployment

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

Market Leaders Profiled

ZhongAn, Oscar, Qufeng, Avant, Lufax, Atom Bank, Kreditech, Kabbage, JD Finance, SoFi, Nubank, Klarna, Square and Funding Circle and other market players

Fastest Growing Region

Asia Pacific

Largest Market

North America

 

Market Segmentation Analysis:

This global report on fintech market is segmented and sub-segmented into the following categories:

Global Fintech Market - By Technology

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.

Global Fintech Market - By Service

  • Payment
  • Fund Transfer
  • Personal Finance
  • Loans
  • Insurance
  • Wealth Management

Global Fintech Market - By Application

  • Banking
  • Insurance
  • Securities
  • Others

Global Fintech Market - By Deployment Mode

  • Cloud
  • On-Premises

The cloud segment accounted for the significant portion of the overall business, which is likely to expand further in the future.

Global Fintech Market - By Region

Based on region, the global market is segregated into

  • North America
  • Europe
  • South America
  • Asia-Pacific
  • 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:

  1. ZhongAn
  2. Oscar
  3. Qufeng
  4. Avant
  5. Lufax
  6. Atom Bank
  7. Kreditech
  8. Kabbage
  9. JD Finance
  10. SoFi
  11. Nubank
  12. Klarna
  13. Square
  14. Funding Circle are some of the other market players looking for market share in FinTech.

Recent developments

  • Commercial loan providers such as Kabbage, Lendio, Acción and Funding Circle (among others) provide established and easy businesses with quick and easy platforms for securing working capital. Oscar, an online start-up in insurance sector, gained $ 165 million as investment in March 2018.
  • In March 2019, Cognizant announced that the company will acquire the Dublin-based financial software company Meritsoft.
  • In March 2019, WorldFirst acquired the Australian company CurrencyVue to develop its global trading platform.

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