FinTech Market Overview:
According to a report by the United Nations Secretary-General’s Special Advocate (UNSGSA), in 2016, 35 mobile money providers had more than one million active accounts, and the figure has been observing a constant surge since then with more mobile money providers emerging in the FinTech market. Furthermore, in November 2018, the United Nations Secretary-General Antonio Guterres had announced the organization will launch a global task force to tap the potential of FinTech in the Sustainable Development Goals (SDGs). Subsequently, there will be a myriad of opportunities for digital financing companies across the globe which will expand the FinTech market that already oozed from opportunities worth $140 billion to $150 billion in 2018, according to the findings by IndustryARC’s market analyst. Furthermore, the analyst estimates the demand for FinTech services to grow with an astonishing CAGR of 25% to 30% during the forecast period of 2019 to 2025.
With a handsome amount of funding acquired by startups, North America is at the helm of technological development of which FinTech is a major subset. The region is also moving forward from digital payments to lending with a significant number of partnerships between lenders as a part of digital investigation management. This development is again supported by the emerging startups in the FinTech sector in North America which held the maximum global FinTech market share of around 35% in 2018, according to the market analyst.
FinTech Market Outlook:
FinTech or financial technology is the new technology and innovation that is gaining prominence and replacing conventional financial services in various sectors such as payments, E-Commerce, banks, social trading, wealth management, and others. Owing to the fact that E-Commerce is rapidly pervading across the globe, it happens to the key application segment of the FinTech market, estimated to grow with a superlative CAGR of 10% to 12% through to 2025.
“With a large number of mobile users having a predilection for online transactions coupled with the fact that the implementation of FinTech is significantly improving customer experience by imbuing convenience in the payments and delivery in the E-Commerce sector, FinTech market demand is going to observe an astounding growth in the future,” remarks the market expert in the FinTech market research report.
FinTech Market Growth Drivers:
The Penetration of Blockchain in Various Sectors –
Blockchains, cryptocurrency, and smart contract are gradually gaining prominence in many sectors, especially to ameliorate the loopholes in supply chain management. According to the market analyst of IndustryARC, blockchain market in supply chain was valued to be $70 million to $75 million in 2018, and it will grow with an outstanding CAGR of 50% during the forecast period of 2019 to 2025.
“This is projected to open the floodgates for FinTech companies which will leverage this technological transition and eminently position themselves in the FinTech market,” comments the market expert in the report.
FinTech Strengthening Financial Data Security –
Cybersecurity is becoming a disquieting challenge in information technology. Organizations are vulnerable to financial losses due to cyber-attacks which is why they are highly investing in FinTech. FinTech not only provides financial data security but also instills convenient transaction, thereby leading to smooth operations and flawless cash-flow in the financial system.
The Growing Demand for Mobile Banking Applications –
In the contemporary world, each bank has its own mobile application that lets the customers make transactions online and also transfer money to other user across the globe. This is creating a major FinTech marketplace for vendors to capitalize on the demand by various banks – old and new ones alike.
FinTech Market Challenges:
FinTech market size is unfortunately dwarfed by the governmental regulations with stringent rules that confine the operability of FinTech applications. Furthermore, there is a perceptible lack of “human touch” in these applications which is sometimes coupled with the extra convenience charges applicable to the transactions, and it’s quite evident by the fact that a lot of accounts made on FinTech mobile applications are dormant. However, future foresees less stern government rules, advanced data security, and increased preference for FinTech applications by the people which will drive the growth in the demand for the same.
FinTech Market Key Players Perspective:
The market leader in the FinTech market is Ant Financial, Alibaba Group which observed 10 times more wallet subscriptions and 13 times more average number of transactions (daily) in 2017 as compared to 2015.
Some other market players crusading for FinTech market share are ZhongAn, Oscar, Qufeng, Avant, Lufax, Atom Bank,Kreditech, Kabbage, JD Finance, SoFi, Nubank, Klarna, Square, and Funding Circle.
FinTech Market Trends:
- In March 2019, Cognizant announced that the company is going to acquire Dublin-based financial software company Meritsoft.
- In March 2019, WorldFirst acquired the Australian CurrencyVue firm to build on its global trade platform.
- With blooming demand for FinTech, the market is poised to observe more mergers and acquisitions in 2019.
- Latest Developments – Artificial intelligence has penetrated the FinTech market and 2019 will observe more digital and voice assistant for banking functions.
FinTech Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the FinTech market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of FinTech market, and their specific applications in lenders, payments, wealth management, financial institutions, and insurance.
FinTech Market Report: Industry Coverage
The report analyses the product demand by technology - API, AI, blockchain, distributed computing, and cryptography. FinTech market is further segmented by the types of service that include financing, asset management, and payments.
Market outlook also covers the analytics on the basis of types of ventures that include competitive FinTech ventures, collaborative FinTech ventures.
The FinTech market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the FinTech Market Report
1. Is the market for FinTech growing? How long will it continue to grow and at what rate?
2. Which type of FinTech presents the major growth opportunities?
3. Is there a possibility for change in the market structure over time?
4. Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
5. Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
6. What are the short-term, long-term, and medium-term growth drivers for the market?
7. What are the short-term, medium-term, and long-term challenges for the market?
8. What are the short-term, medium-term, and long-term opportunities for the market
9. Who are the top players/companies of the market?
10. What are the recent innovations in the market?
11. How many patents have been filed by the leading players?
12. What are the types of patents filed by the leading players?
13. What is our Vision 2030 for FinTech Market?
A few focus points of this Research are given below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global FinTech during the forecast 2018–2023
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures