The global fintech market size reached US$ 158.9 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 449.1 Billion by 2028, exhibiting a growth rate (CAGR) of 17.7% during 2023-2028.
The increasing requirement for advanced solutions in the banking process to enhance efficiency, rising adoption of digital payment methods, and the growing demand for mobile-centric solutions are some of the major factors propelling the market.
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Factors Affecting the Growth of the Fintech Industry:
- Increasing Reliance on Smartphones:the increasing sales of smartphones are providing individuals with unprecedented access to financial services. Mobile apps offered by fintech companies are enabling people to manage their finances more efficiently. Individuals can now conduct banking transactions, make investments, and even access insurance services remotely. Additionally, the development of mobile apps enables people to receive mobile notifications from time to time regarding the status of their account balances and money transfers. The convenience, speed, and ease of use offered by mobile fintech apps are fundamentally transforming the customer experience in the financial sector.
- Integration of Advanced technologies:
The integration of artificial intelligence (AI) and big data analytics is facilitating the market growth. Fintech companies are increasingly using AI to provide highly personalized financial services. Through data analysis, these firms gain insights into consumer behavior, enabling them to offer tailored recommendations and products. Furthermore, AI aids in risk assessment and fraud detection, enhancing security and reducing the likelihood of financial crimes. Big data analytics also enables fintech firms to make data-driven decisions and continually refine their offerings, improving customer experiences.
- Rise in Cyber threats:
The rising incidences of cyber threats across financial institutions are driving the need for secure financial transactions. Fintech companies are increasingly implementing robust cybersecurity measures to protect user data and financial information. In addition, several leading market players are investing in encryption techniques, multi-factor authentication, and real-time fraud monitoring. This rising emphasis on security is making fintech services increasingly attractive to individuals who are concerned about the safety of their financial transactions, thereby driving the demand for fintech services across the globe.
Fintech Market Report Segmentation:
By Deployment Mode:
On-premises represented the largest segment as it gives the organization full control over their data and systems.
By Technology:
- Application Programming Interface
- Artificial Intelligence
- Blockchain
- Robotic Process Automation
- Data Analytics
- Others
On the basis of the technology, the market has been classified into application programming interface, artificial intelligence, blockchain, robotic process automation, data analytics, and others.
By Application:
- Payment and Fund Transfer
- Loans
- Insurance and Personal Finance
- Wealth Management
- Others
Payment and fraud transfer dominates the market due to the improved speed and convenience of payments and fund transfers offered by mobile apps.
By End User:
- Banking
- Insurance
- Securities
- Others
On the basis of end user, banking holds the majority of the market share as Fintech has a broad user base in the banking sector.
Regional Insights:
- North AmericaUnited States
Canada
- Asia PacificChina
Japan
India
South Korea
Australia
Indonesia
Others
- EuropeGermany
France
United Kingdom
Italy
Spain
Others
- Latin AmericaBrazil
Mexico
Others
- Middle East and Africa
North America's dominance in the keyword market is attributed to the growing collaboration between financial institutions and national regulators.
Global Fintech Market Trends:
Embedded finance involves the integration of financial services seamlessly into non-financial applications and platforms. Application programming interfaces (APIs) enable this integration, allowing businesses to offer financial products and services within their ecosystems. For example, e-commerce platforms can provide instant loans, and ride-sharing apps can offer insurance coverage. This trend enhances customer engagement and provides added value to users, further driving the market. It also fosters collaboration between fintech companies and other industries, which results in a more interconnected financial ecosystem.
Environmental, social, and governance (ESG) considerations are becoming increasingly important in the financial industry. Several fintech firms are integrating ESG factors into their products and services to attract a wider consumer base. This includes offering sustainable investment options, providing ESG data and analytics, and developing tools to assess the environmental and social impact of financial decisions. In addition, investors are showing a growing interest in aligning their finances with their values, making ESG integration a significant driver of fintech market growth.
Leading Companies Operating in the Global Seeding Industry:
- Adyen N.V.
- Afterpay Limited (Block Inc.)
- Avant LLC
- Cisco Systems Inc.
- Google Payment Corp.
- International Business Machines Corporation
- Klarna Bank AB
- Microsoft Corporation
- Nvidia Corporation
- Oracle Corporation
- Paypal Holdings, Inc.
- Robinhood Markets Inc.
- SoFi Technologies Inc
- Tata Consultancy Services
Other Key Points Covered in the Report:
- COVID-19 Impact
- Porters Five Forces Analysis
- Value Chain Analysis
- Strategic Recommendations
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