Fintech Market

Fintech Market

Global Fintech Market- By Deployment Mode, Application, Technology and End User.

Market Synopsis:

The Global Fintech Market is valued at USD 133.84 Billion in the year 2022 and is projected to reach a value of USD 556.58 Billion by the year 2030. The Global Market is expected to grow exhibiting a Compound Annual Growth Rate (CAGR) of 19.50% over the forecast period.

Fintech (financial technology) is the use of new technical breakthroughs to financial products and services with the goal of enhancing and automating the supply and usage of financial services. It also intends to compete with existing traditional financial methods in the delivery of financial services by incorporating a variety of technologies such as application programming interfaces (APIs), artificial intelligence (AI), blockchain, and data analytics. Fintech has been one of the market's key driving drivers because it enables for convenient services and helps preserve transparency in terms of financial elements. Furthermore, the implementation of advanced technologies by several financial bodies to provide integrated and value-added services to customers, as well as a growing number of collaborations between national regulators and financial institutions, are major factors driving the Fintech Market's growth.

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The financial sector, which handles a great deal of sensitive information about persons and businesses, places a premium on data privacy and security. The exponential rise of Fintech has made data in digital formats easily accessible, ensuring that data is now readily available to create more insights, making it vulnerable to security breaches. The financial technology (Fintech) business is being held back by concerns about consumer data security. Fintech firms amass a vast amount of information about their consumers, including personal information and financial records. To track a customer's digital footprint, many Fintech companies collect data on their online buying habits and social media habits. This information is analysed in areas such as marketing, sales, and financial decision-making, such as calculating a credit score to identify a customer's risk profile. As a result, a substantial amount of personal and sensitive data is at risk of being breached and accessed by unscrupulous actors. Data loss, data breaches, malware injection, account hacking, and cloud service abuse are all key security concerns for businesses in the market.

Market Segmentation:

The Global Fintech Market is segmented on the basis of Deployment Mode, Application, Technology and End User. On the basis of Deployment Mode, the market is segmented into On-premise and Cloud. On the basis of Application, the market is segmented into Payment & Fund Transfer, Loans, Insurance & Personal Finance, Wealth Management and Others. On the basis of Technology, the market is segmented into Application Programming Interface (API), Artificial Intelligence (AI), Block chain, Robotic Process Automation, Data Analytics and Others. On the basis of End User, the market is segmented into Banking and Insurance.

Based on Application:

On the basis of Application, the market is segmented into Payment & Fund Transfer, Loans, Insurance & Personal Finance, Wealth Management and Others. In 2020, the market was led by the Insurance & Personal Finance. Various laws establish varied norms and regulations across countries, with financial centres taking a more united approach to regulation. This has become a critical element for Fintech companies to develop solutions that address several rules such as MiFID II and GDPR, which creates inter-regulation conflict and stifles industry growth. Banks in the United States, for example, support the Dodd-Frank Act, whereas in Europe, MiFID II regulations are being examined for enterprises that fall under its jurisdiction. The market for financial technologies is hampered by these factors.

Based on End User:

On the basis of End User, the market is segmented into Banking and Insurance. The global market for Fintech is led by banking, which is likely to maintain its lead during the forecast period. Various crises have worked as catalysts for the Fintech Market's development. Fintech investments have increased since the last global financial crisis. The sector's growth was largely a technical response to the traditional financial services industry's flaws, which were exposed during and after the crisis. Insurtech, Regtech, payment services, and other Fintech versions have evolved in recent years that leverage cutting-edge technology suited for certain purposes or industries, such as Insurtech, Regtech, and payment services. Now that the Fintech business has shown to be more than a fad, the level of execution attained in an organization's plan is becoming increasingly important. The Fintech industry's technological side is continuously expanding.

North America is projected to acquire the largest market share during the year 2021

North America's Fintech Market is dominated by the United States. The United States controls 37.50 percent of the Fintech Market as of 2021. Convenience, security, simplicity, transparency, and personalisation are just a few of the primary benefits that consumers in the country can enjoy as a result of Fintech innovation. Fintech money transfers and payment services have grown in popularity as a result of the enormous development in online digital-only banks and mobile phone payments. With a total transaction value of USD 880 billion in 2021, digital payment is the top market sector. Due to its first adoption in most applications and the existence of prominent firms in the industry, the Fintech Market in the United States has seen the most adaptation of solutions.