Fintech Market to Reach Valuation of USD 332.5 Billion by 2028 - Untapped Potential of Emerging Economies to Drive the Market Growth

Vantage Market Research

May 08, 2022

From the period 2022 to 2028, the Global Fintech Market is expected to reach USD 332.5 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 19.50%.

Fintech (financial technology) is the application of new technological discoveries to financial products and services with the purpose of improving and automating financial service supply and consumption. It also plans to compete with existing traditional financial techniques in the delivery of financial services by using a number of technologies such as APIs, artificial intelligence (AI), blockchain, and data analytics. Data privacy and security are extremely important in the financial sector, which deals with a lot of sensitive information about people and corporations. The exponential expansion of Fintech has made data in digital formats widely accessible, guaranteeing that data is now readily available to generate additional insights but also exposing it to security breaches. Consumer data security worries are holding down the financial technology (FinTech) industry. Fintech companies collect a lot of data on their customers, including personal information and financial records. Many Fintech companies acquire data on a customer's online purchase behaviors and social media habits in order to track their digital footprint. This data is analyzed for marketing, sales, and financial decision-making purposes, such as producing a credit score to determine a customer's risk profile. As a result, a large amount of personal and sensitive data could be compromised and accessed by unscrupulous people.

Key Highlights from the Report

  • On the basis of Application, the market is segmented into Loans, Payment & Fund Transfer Insurance & Personal Finance, Wealth Management, and Others. In 2020, the market was led by Insurance & Personal Finance. Different laws establish different norms and rules in different countries, with financial centers adopting a more uniform approach to regulation. This has become a vital component for Fintech companies to develop solutions that satisfy several standards, like MiFID II and GDPR, which cause inter-regulation conflict and limit sector progress. Banks in the United States, for example, support the Dodd-Frank Act, although MiFID II laws in Europe are being scrutinized for firms that fall within its purview. These factors are impeding the market for financial technologies.

  • On the basis of End Users, 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 functioned as catalysts for the Fintech Market's development. Since the global financial crisis, Fintech investments have surged. The emergence of the sector was largely a technical response to the faults in the traditional financial services business that were exposed during and after the crisis. Insurtech, Regtech, payment services, and other Fintech variants have emerged in recent years, leveraging cutting-edge technology tailored to certain purposes or industries, such as Insurtech, Regtech, and payment services. The quality of execution achieved in an organization's plan is becoming increasingly vital now that the Fintech industry has shown to be more than a fad. The technological side of the Fintech industry is constantly developing.

  • is the fastest regional segment in terms of growth. The Fintech Markets in APAC with accounting for moreover 40% of the worldwide market. The EMEA region is much smaller, accounting for less than 20% of the total market. The Fintech Market in APAC is expected to grow at the quickest rate. In the Asia-Pacific area, financial apps are fast gaining popularity. There were over 1230 financial apps accessible in APAC, and marketers spent US$ 244 million on new user acquisitions in 2020 alone. Between Q1 2019 and Q1 2021, there were 2.7 billion installations in APAC.

Some of the key players in the On-Board Battery Charger Market include Bankable, Blockstream Corporation Inc., Circle Internet Financial Limited, Cisco Systems Inc., Goldman Sachs, IBM Corporation, Microsoft, NVIDIA Corporation, Oracle, Tata Consultancy Services Limited and others.

Market Dynamics:

Untapped Potential of Emerging Economies.

As various financial companies integrate Fintech solutions into their existing business operations, developing economies presents considerable opportunity for Fintech tech startups to increase their offerings. High investments in digital transformation, adoption of new technologies such as artificial intelligence in Fintech, Big Data, machine learning, and chatbots, and rapid expansion of domestic enterprises, particularly in countries like Australia, China, India, Singapore, and South Korea, are expected to drive the Fintech technologies market forward in the coming years.

Increase in Number of Collaborations Between National Regulators & Financial Institutions

Regulatory organizations in Asia-Pacific, the United States, and Europe are always looking for ways to collaborate with the Fintech community. Furthermore, this strong desire to collaborate between Fintech companies and regulators strives to create a win-win situation for both businesses and governments. For example, the Global Financial Innovation Network (GFIN), which was formally founded in January 2019 by an international coalition of financial regulators and allied organizations, is dedicated to promoting financial innovation in the consumer's best interests. Furthermore, GFIN aims to provide a cost-effective way for innovative enterprises to connect with regulators, assisting with new business models in several jurisdictions. As a result of the growing collaboration between national authorities and financial institutions, the Fintech technologies market is expected to rise over the forecast period.

The United States dominates the Fintech Market in North America. As of 2021, the United States owns 37.50 percent of the Fintech Market. Convenience, security, simplicity, transparency, and personalization are just a few of the major advantages that Fintech innovation provides to consumers in the country. As a result of the significant growth in online digital-only banks and mobile phone payments, Fintech money transfers and payment services have increased in popularity. Digital payment will be the largest market segment in 2021, with a total transaction value of USD 880 billion. The Fintech Market in the United States has seen the most adaptation of solutions due to its early adoption in most applications and the presence of important firms in the field.

Fintech Market Size, Share & Trends Analysis Report by Deployment Mode (On-premise, Cloud), by Application (Payment & Fund Transfer, Loans, Insurance & Personal Finance, Wealth Management), by Technology (Application Programming Interface (API), Artificial Intelligence (AI), Blockchain, Robotic Process Automation), by End User (Banking, Insurance, Securities, Others), by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)