Fintech - Thematic Research
Summary
Fintech' originally referred to a variety of new entrants, free from legacy, and often able to bypass bank regulation, operating primarily direct-to-consumer business models. Today, the term has evolved to become a catch-all for all types of financial and technology propositions, regardless of provider type, business model, and target customer segment. This report examines how fintech is transforming all subsegments of financial services, via new entrants’ propositions and incumbent bank modernization, covering payments, lending, wealth management, banking services, and beyond.
Following a record-breaking investment year in 2021, which followed a record-breaking investment decade from 2010 to 2020, fintech activity has slowed under more difficult economic conditions. The 15 years of low interest rates have distorted the market, and the next five will see a return to economic fundamentals. There are big questions around future funding rounds, valuations, and underlying interest rates, but also more fundamentally the true underlying performance of many individual businesses.
Scope
- 20 years of fintech driven disaggregation – or “unbundling” – has culminated in the rise of embedded finance, which will bring heightened levels of disruption, as ever-smaller pieces of banking can be unbundled and re-bundled in new ways.
- Many banks will view banking as a service a sensible way to co-exist with the network advantages of big tech firms, and the growing role of super apps. With rates rising, that net interest margin position will reap more rewards. However, regulatory changes, around interchange and capital reserves, risk drastically changing the economics of that business model.
- 2021 was the peak year for fintech activity across all signals data, including news items, hiring, patent applications, company fillings, social media mentions and M&A activity. From 2022 onwards, all early indicators have gone into decline, consistent with a broader deterioration in the economic environment.
- Understand key technology, macroeconomic, and regulatory trends in fintech.
- Determine which fintech subsectors are most disruptive and why.
- Access fintech signals data across patents, hiring, corporate filings, social media mentions. and M&A activity.
- View firm-level insight on the leading private and public players within the fintech theme.
- Executive Summary
- Players
- Technology Briefing
- Fintech has become a catch-all term for the digitization of financial services
- Fintech is transforming all sub-segments of financial services
- Payments
- Lending
- Wealth management
- Banking services
- Investment banking
- Fintech is creating new products, services, and provider types
- Regional fintech characteristics
- Super-apps and re-bundling
- Embedded finance
- Trends
- Technology trends
- Macroeconomic and social trends
- Regulatory trends
- Industry Analysis
- Fintech signals data
- Top-level observations across all signals databases
- Corporate filings
- Hiring activity
- Social media
- Patents
- Deals
- News
- Mergers and acquisitions
- Timeline
- Value Chain
- Infrastructure
- Core banking
- Middleware
- Front-end channels
- Risk/regtech modules
- Payments
- Digital wallets
- Mobile payments
- Real-time payments
- Online payments
- Payment processing
- Cryptocurrencies
- Cards
- Lending
- POS/BNPL lending
- P2P lending
- SME lending
- Mortgage lending
- Advice
- Comparison sites
- Digital money managers
- Digital mortgage brokers
- Wealth management
- Robo-advice
- Banking services
- Licensed banks
- Digital front ends
- Bank as a service (BaaS)
- Investment banking
- Companies
- Infrastructure
- Platforms
- Payments
- Lending
- Advice
- Licensed banks
- Sector Scorecards
- Banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Technology trends
- Table 2: Macroeconomic and social trends
- Table 3: Regulatory trends
- Table 4:Key M&A transactions associated with the fintech theme in the last five years
- Table 5: Infrastructure
- Table 6: Platforms
- Table 7: Payments
- Table 8: Lending
- Table 9: Advice
- Table 10: Licensed banks
- Table 11: Glossary
- Table 12: GlobalData reports
- List of Figures
- Figure 1: Who are the leading players in the fintech theme and where do they sit in the value chain?
- Figure 2: How fintech is changing the global banking industry?
- Figure 3: Fintech is creating new company types in financial services
- Figure 4: Fintech by regional ecosystem
- Figure 5: Embedded finance means all sectors can become “fintech”
- Figure 6: Embedded finance helps banks disaggregate otherwise ‘fixed’ costs in infrastructure
- Figure 7: Corporate filing trends for companies in the fintech sector
- Figure 8: Active job postings globally for fintech, Jan 2020 to May 2023
- Figure 9: Social media trends in banking year on year
- Figure 10: Patent filings and grants in Fintech spiked across 2021/2022
- Figure 11: Deals in the fintech category in the last five years (2018 to 2023)
- Figure 12: The number of news items from banks mentioning fintech
- Figure 13: The Fintech story
- Figure 14: Fintech value chain
- Figure 15: The key subcategories of fintech infrastructure players
- Figure 16: The key sub-categories of fintech payment players
- Figure 17: The key sub-categories of fintech lending players
- Figure 18: The key sub-categories of fintech advice players
- Figure 19: The key sub-categories of fintech wealth management players
- Figure 20: The key sub-categories of fintech banking services players
- Figure 21: Who does what in the banking space?
- Figure 22: Thematic screen
- Figure 23: Valuation screen
- Figure 24: Our five-step approach for generating a sector scorecard
Research Assistance
Download our eBook: How to Succeed Using Market Research
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook