The size of the global fintech market was USD 100.09 billion in 2020, and it is anticipated to grow in value at an 8.5% CAGR. Rising demand for smartphones, growing private investor involvement in fintech firms, rising Internet usage for a variety of activities and functions, and rising disposable income among consumers in developing nations are key factors influencing market revenue growth. Fintech, or financial technology, combines technologically sophisticated financial solutions.
It calls for the application of cutting-edge technologies and solutions to produce banking and financial services that are more valuable and effective. The use of diverse software, applications, and algorithms for computer- and mobile-based tools is referred to as fintech. Fintech also includes hardware elements like VR trading platforms and connected high-tech piggy banks. To provide financial solutions more effectively and enhance customer experience, financial institutions and financial organizations also use financial technologies including Artificial Intelligence (AI), analytics, blockchain, mobile commerce, cloud infrastructure, cryptography, biometrics, and RPA.
Banking, investing and trading, mobile payments, insurance, lending, and other industries are some other key fintech solution application areas. Blockchain is a distributed, decentralized digital ledger that aids in gathering and managing digital asset transactional records. A digital currency called cryptocurrency is used to pay for products and services. It secures the recording of digital transactions using blockchain and cryptography. A crucial component of mobile banking is fintech. Customers can use their smartphones for mobile banking to conduct financial transactions remotely. Banks and other financial institutions are the main providers of mobile banking services. Through the use of digital platforms, people may quickly get credit reports and use immediate loan services.
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Some major players in the market include Microsoft, Paytm, Google, IBM, Intel, Affirm, Upstart, Sigmoidal, Zest Finance, and Amazon.
Due to the rise in usage and adoption of online and digitalized financial product lines among customers worldwide, the COVID-19 pandemic has had a substantial impact on the fintech technology industry. Additionally, lenders and investors are boosting Fintech firms’ cash and funding for technology. Fintech advances are consequently assisting in lowering the cost of providing services, making it possible to contact more people, and minimizing the need for face-to-face encounters during the pandemic. Access to inexpensive financial services is essential for poverty reduction and economic growth. In turn, during the current global health crisis, this has turned into one of the main development causes for the financial technologies market.
Varied laws establish different norms and regulations in various jurisdictions, and financial centers have a more uniform approach to regulation. This has emerged as a key consideration for fintech technology businesses as they develop solutions for a variety of regulations, including GDPR and MiFID II, which create inter-regulatory conflict and limit market expansion. For instance, banks in the United States adhere to the Dodd-Frank Act, whereas in Europe, enterprises subject to its jurisdiction must comply with MiFID II requirements. These factors prevent the market for fintech technologies from expanding.
Given that many financial businesses are integrating Fintech solutions into their current business operations, developing economies present a huge opportunities for Fintech tech companies to increase their product offerings. In the coming years, there is potential for the fintech technologies market due to high investments in digital transformation, the adoption of new technologies like artificial intelligence in Fintech, Big Data, machine learning, and chatbots, and the rapid expansion of domestic enterprises, particularly in countries like Australia, China, India, Singapore, and South Korea.
Technology Outlook (Revenue, USD Billion; 2018-2028)
- Artificial Intelligence (AI)
- Mobile Commerce
- Cloud Infrastructure
- Cyber Security
Services Outlook (Revenue, USD Billion; 2018-2028)
- Wealth Management
- Fund Transfer
- Personal Loans and P2P Lending
- Personal Finance
Application Outlook (Revenue, USD Billion; 2018-2028)
- Retail Banking
- Stock Trading Firms
- Investment Banking
- Hedge Funds
Regional Outlook (Revenue, USD Billion; 2018-2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
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