Global FinTech market by deployment mode (on-premise and cloud); by application (payment & fund transfer, loans, insurance & personal finance, wealth management, and others); by technology (application programming interface [API], artificial intelligence

Global FinTech market by deployment mode (on-premise and cloud); by application (payment & fund transfer, loans, insurance & personal finance, wealth management, and others); by technology (application programming interface [API], artificial intelligence [AI], blockchain, robotic process automation, data analytics, and others), and end-user (banking, insurance, securities, and others); by region (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa); trend analysis, competitive market share & forecast, 2018-2028.

Global Fintech Market to Grow at a CAGR of 25.0% during 2022 – 2028

The global Fintech market’s growth is attributable to rising popularity for digital payments, increased adoption of IoT connected devices, escalating investments in technology-driven solutions, and supportive government rules and regulations…

A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Global Fintech Market is expected to grow at a CAGR of 25.0% during the forecast period of 2022-2028. Fintech is a broad term representing technology-driven advancements in financial services. Factors like the rising popularity of digital payments increased adoption of IoT connected devices, and massive investments in technology-driven solutions are expected to positively influence the Global Fintech Market in the coming years.

Adoption Of Futuristic Technologies And Escalating Collaborations Between National Regulators And Financial Regulators Driving The Fintech Market Growth.

The large-scale integration of the latest technologies like Artificial Intelligence, Internet of Things, Machine Learning, cloud computing technologies, etc., have made the demand for technologically driven financial solutions skyrocket over the last few years. The adoption of fintech technologies has escalated at an impressive rate over the past few years, especially by SMEs, as fintech help SMEs meet their financial needs like financing, banking, payments, insurance, etc. Moreover, more agreements and collaborations between national regulators and financial institutions are expected to propel the growth rate of the fintech market during the forecast period.

Data Privacy And Security Concerns And Stringent Regulations To Impede The Fintech Market Growth.

One of the downsides to technological advancements is that cybersecurity is becoming a threatening challenge in information and communication technology. Moreover, the diverse and conflicting government regulations applicable across different jurisdictions and excessively coercive regulations prevent the fintech technologies from meeting their potential and reducing their operability. The obvious lack of human contact is evident from the fact that most of the accounts on the fintech apps are lying inactive. These factors act as major challenges for the market growth of the global fintech market.

Artificial Intelligence Segment Projected to Grow with A Higher CAGR During The Forecast Period 2022-2028.

The global fintech market is segmented into the following categories on the basis of technology like application programming interface [API], artificial intelligence [AI], blockchain, robotic process automation, data analytics, etc. Amidst the segmentation, the artificial intelligence segment is expected to have a higher growth rate in the coming years. The wide range of capabilities driven by AI is contributing to the growing share of the AI segment. Banking firms throughout the world are implementing advanced risk analytics and fraud detection capabilities powered by AI to prevent the loss of sensitive customer information. Several other emergent fields like blockchain and distributed ledger technology (DLT) are expected to show a healthy growth rate during the forecast period.

Impact of COVID-19 on the Fintech Market

The deadly COVID-19 pandemic had a disastrous effect on different sectors except for the ones, the global Fintech market being the most prominent one among these. The outbreak of COVID-19 led to widespread adoption of the usage of digital payments. Moreover, due to the COVID-19 pandemic, key countries such as China and the U.S. have taken major strategic decisions. Leading companies are evolving advanced technologies and developing new products to remain competitive in the market. Accessibility to affordable financial services is crucial for poverty reduction and economic growth of economies; thereby, innovations in the fintech market are helping to reduce the cost of providing services, thus creating a wider reach and lowering the need for face-to-face interactions during the COVID pandemic. This has become one of the most significant factors aiding the growth of the fintech market during the global health crisis and consequent lockdowns.

North America Dominates The Global Fintech Market While Asia-Pacific To Witness The Highest Growth During The Forecast Period.

Amidst the segmentation based on region, North America accounted for the largest market share owing to extensive R&D activities. On the other hand, the highest CAGR is anticipated to be exhibited by the Asia-Pacific on account of expanding customer base due to largest population share, especially of Gen Z and millennials, and openness to accept new technology, thereby presenting a huge market opportunity to convert from cash to digital payments. Other regions, like Latin America and Africa, are also emerging on the fintech scenario.

Competitive Landscape

The Fintech market is a fragmented market with numerous players serving the market. The key players dominating the global Fintech market are Ant Group Co. Ltd., Paypal Holdings, Inc., Tencent Holdings Ltd., Robinhood Markets, Inc., Google Payment Corp., One97 Communications Ltd., Adyen NV., Qudian Inc., Afterpay Limited, Nexi SpA, Klarna Bank AB, Social Finance, Inc, Avant, LLC, Bankable, Blockstream Corporation Inc., Circle Internet Financial Limited, Cisco Systems Inc., Goldman Sachs, IBM Corporation, Microsoft, NVIDIA Corporation, Oracle, Tata Consultancy Services Limited and other prominent players. The key marketing strategies adopted by the players are extensive investments in research and development, portfolio expansions, new and advanced product launches, geographical expansions collaborations, partnerships and acquisition to expand their customer reach.