Global Fintech - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Global Fintech Market size is estimated at USD 312.92 billion in 2024, and is expected to reach USD 608.35 billion by 2029, growing at a CAGR of greater than 14% during the forecast period (2024-2029).
In the financial industry, fintech stands for financial technology. In businesses that offer automated and enhanced financial services, fintech refers to computer programs and other contemporary technologies. The fintech sector has developed significantly over time, which has caused businesses to become more customer-focused. It is, therefore, difficult to find a position among the many businesses that exist worldwide, which range from startups to tech enterprises to well-established businesses. Fintech and financial service organizations have pursued disruptive and new ideas in an ever-changing business landscape, taking up each other's lanes with either a collaborative or a competing attitude.
Multiple crises have served as a driving force behind the growth of the fintech industry. Fintech investments have been rising since the last global financial crisis. The traditional financial services sector was severely pressed both during and after the crisis, and its weaknesses led to a technological reaction that resulted in the sector's expansion. In a similar vein, the COVID-19 pandemic also had a disastrous effect on the world economy and started the recession. The fintech industry developed more quickly as a result of this crisis. Large financial institutions collaborated with up-and-coming tech firms in response to the pandemic in order to gain access to the new market. The fintech business is growing even though the companies themselves are looking to collaborate with big banks to broaden their clientele and offerings.
In recent years, numerous fintech subtypes, such as insurtech, regtech, payment services, and others, have emerged that employ cutting-edge technologies customized for certain industries or roles. The degree of execution attained in an organization's plan is becoming more significant now that the fintech sector is more than just a fad. The fintech business is experiencing fast growth in its technological side. There has been an increased adoption of technology that allows for better accuracy, efficiency, and agility, such as blockchain, process automation, application programming interface (API), robotic and data analytics.
Fintech Market Trends
Surging Adoption of Digital Payments is Driving the Market
Money transfers and payments play a fundamental role in the fintech industry, serving as a cornerstone for financial services innovation and digital transformation. Money transfers and payments facilitate access to financial services for underserved populations, including the unbanked and underbanked. Fintech innovations in money transfers and payments improve the overall customer experience by offering convenient, efficient, and user-friendly payment solutions.
Digital payments have revolutionized the fintech industry by providing faster, more efficient, and more secure ways to transfer money and make financial transactions. The use of digital payments has grown in recent years due to the increasing adoption of smartphones, the Internet, and other digital technologies. Digital payments serve as the foundation upon which many fintech innovations are built. Fintech companies leverage digital payment infrastructure to offer different services, including peer-to-peer (P2P) transfers, online lending, robo-advisory, insurance, and more. These solutions enhance financial accessibility and inclusion by leveraging digital payment channels. With digital payments, customers can make transactions irrespective of the time and place without the need for physical currency or cards. This convenience has led to a significant increase in the use of digital payments.
Fintech-driven digital payments often have lower transaction fees when compared to traditional banking methods, especially for cross-border transactions. This cost efficiency benefits both consumers and businesses, reducing the financial barriers associated with conducting transactions and driving the adoption of fintech payment solutions. Fintech companies prioritize security in digital payments by implementing robust encryption, biometric authentication, and fraud detection mechanisms. These measures enhance the security of financial transactions, instilling trust in users and encouraging wider adoption of digital payment solutions.
Asia-Pacific Leading the Market Owing to Growing Digitalization Coupled with Supportive Regulatory Frameworks
Asia-Pacific is experiencing robust growth and rising demand in the fintech market, driven by several key factors. Firstly, the region's rapidly expanding digital economy, fueled by increasing Internet and smartphone penetration, is creating a fertile ground for fintech innovation and adoption. With a large population of digitally savvy consumers, there is a growing demand for convenient and accessible financial services delivered through digital channels.
Additionally, government initiatives aimed at promoting digitalization and financial inclusion, coupled with supportive regulatory frameworks, are fostering a conducive environment for fintech growth in the region. Countries like China, India, Singapore, and Australia are emerging as fintech hubs, attracting significant investment and talent. Several government initiatives and regulatory frameworks have supported the growth of fintech in Asia-Pacific. For instance, the RBI has introduced several measures to promote fintech growth in India, such as the Unified Payments Interface (UPI), which enables seamless real-time payments between different banks and promotes digital transactions. Similarly, fintech companies can test new goods and services in a safe setting by utilizing the regulatory sandbox program established by the Monetary Authority of Singapore (MAS). The Payment Services Act, which offers a regulatory framework for a range of payment activities such as digital wallets, payment processing, and cryptocurrency services, has also been adopted by MAS.
Asia-Pacific is well-positioned to continue serving as a center for fintech innovation and investment, propelling the industry's long-term growth and transformation as fintech disrupts traditional financial services and changes the industry landscape.
Fintech Industry Overview
The fintech market is dynamic and evolving, driven by ongoing technological innovation, changing consumer preferences, regulatory developments, and strategic partnerships among various industry players. The major players in the market include Ant Financials, Atom Bank, SoFi, Paypal, and Coinbase.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
In the financial industry, fintech stands for financial technology. In businesses that offer automated and enhanced financial services, fintech refers to computer programs and other contemporary technologies. The fintech sector has developed significantly over time, which has caused businesses to become more customer-focused. It is, therefore, difficult to find a position among the many businesses that exist worldwide, which range from startups to tech enterprises to well-established businesses. Fintech and financial service organizations have pursued disruptive and new ideas in an ever-changing business landscape, taking up each other's lanes with either a collaborative or a competing attitude.
Multiple crises have served as a driving force behind the growth of the fintech industry. Fintech investments have been rising since the last global financial crisis. The traditional financial services sector was severely pressed both during and after the crisis, and its weaknesses led to a technological reaction that resulted in the sector's expansion. In a similar vein, the COVID-19 pandemic also had a disastrous effect on the world economy and started the recession. The fintech industry developed more quickly as a result of this crisis. Large financial institutions collaborated with up-and-coming tech firms in response to the pandemic in order to gain access to the new market. The fintech business is growing even though the companies themselves are looking to collaborate with big banks to broaden their clientele and offerings.
In recent years, numerous fintech subtypes, such as insurtech, regtech, payment services, and others, have emerged that employ cutting-edge technologies customized for certain industries or roles. The degree of execution attained in an organization's plan is becoming more significant now that the fintech sector is more than just a fad. The fintech business is experiencing fast growth in its technological side. There has been an increased adoption of technology that allows for better accuracy, efficiency, and agility, such as blockchain, process automation, application programming interface (API), robotic and data analytics.
Fintech Market Trends
Surging Adoption of Digital Payments is Driving the Market
Money transfers and payments play a fundamental role in the fintech industry, serving as a cornerstone for financial services innovation and digital transformation. Money transfers and payments facilitate access to financial services for underserved populations, including the unbanked and underbanked. Fintech innovations in money transfers and payments improve the overall customer experience by offering convenient, efficient, and user-friendly payment solutions.
Digital payments have revolutionized the fintech industry by providing faster, more efficient, and more secure ways to transfer money and make financial transactions. The use of digital payments has grown in recent years due to the increasing adoption of smartphones, the Internet, and other digital technologies. Digital payments serve as the foundation upon which many fintech innovations are built. Fintech companies leverage digital payment infrastructure to offer different services, including peer-to-peer (P2P) transfers, online lending, robo-advisory, insurance, and more. These solutions enhance financial accessibility and inclusion by leveraging digital payment channels. With digital payments, customers can make transactions irrespective of the time and place without the need for physical currency or cards. This convenience has led to a significant increase in the use of digital payments.
Fintech-driven digital payments often have lower transaction fees when compared to traditional banking methods, especially for cross-border transactions. This cost efficiency benefits both consumers and businesses, reducing the financial barriers associated with conducting transactions and driving the adoption of fintech payment solutions. Fintech companies prioritize security in digital payments by implementing robust encryption, biometric authentication, and fraud detection mechanisms. These measures enhance the security of financial transactions, instilling trust in users and encouraging wider adoption of digital payment solutions.
Asia-Pacific Leading the Market Owing to Growing Digitalization Coupled with Supportive Regulatory Frameworks
Asia-Pacific is experiencing robust growth and rising demand in the fintech market, driven by several key factors. Firstly, the region's rapidly expanding digital economy, fueled by increasing Internet and smartphone penetration, is creating a fertile ground for fintech innovation and adoption. With a large population of digitally savvy consumers, there is a growing demand for convenient and accessible financial services delivered through digital channels.
Additionally, government initiatives aimed at promoting digitalization and financial inclusion, coupled with supportive regulatory frameworks, are fostering a conducive environment for fintech growth in the region. Countries like China, India, Singapore, and Australia are emerging as fintech hubs, attracting significant investment and talent. Several government initiatives and regulatory frameworks have supported the growth of fintech in Asia-Pacific. For instance, the RBI has introduced several measures to promote fintech growth in India, such as the Unified Payments Interface (UPI), which enables seamless real-time payments between different banks and promotes digital transactions. Similarly, fintech companies can test new goods and services in a safe setting by utilizing the regulatory sandbox program established by the Monetary Authority of Singapore (MAS). The Payment Services Act, which offers a regulatory framework for a range of payment activities such as digital wallets, payment processing, and cryptocurrency services, has also been adopted by MAS.
Asia-Pacific is well-positioned to continue serving as a center for fintech innovation and investment, propelling the industry's long-term growth and transformation as fintech disrupts traditional financial services and changes the industry landscape.
Fintech Industry Overview
The fintech market is dynamic and evolving, driven by ongoing technological innovation, changing consumer preferences, regulatory developments, and strategic partnerships among various industry players. The major players in the market include Ant Financials, Atom Bank, SoFi, Paypal, and Coinbase.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise of Digital Payments
4.2.2 Rising Investments in FinTech Firms
4.3 Market Restraints
4.3.1 Intense Competition
4.3.2 Increasing Cybersecurity Risks
4.4 Market Opportunites
4.4.1 Evolving Blockchain Technology and Cryptocurrency
4.4.2 Collaboration with Traditional Financial Institutions
4.5 Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Technological Innovations in the Market
4.8 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Service Proposition
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending and Lending Marketplaces
5.1.4 Online Insurance and Insurance Marketplaces
5.1.5 Other Service Propositions
5.2 By Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 Germany
5.2.2.3 France
5.2.2.4 Spain
5.2.2.5 Rest of Europe
5.2.3 Latin America
5.2.3.1 Brazil
5.2.3.2 Argentina
5.2.3.3 Mexico
5.2.3.4 Rest of Latin America
5.2.4 Asia-Pacific
5.2.4.1 China
5.2.4.2 India
5.2.4.3 Japan
5.2.4.4 South Korea
5.2.4.5 Rest of Asia-Pacific
5.2.5 Middle East and Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Ant Financials
6.2.2 Zhong An International
6.2.3 Atom Bank
6.2.4 Paypal
6.2.5 SoFi
6.2.6 CoinBase
6.2.7 Robinhood
6.2.8 Adyen
6.2.9 N
6.2.10 Ally Financials
6.2.11 Oscar Health
6.2.12 Klarna
6.2.13 Avant*
7 MARKET FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise of Digital Payments
4.2.2 Rising Investments in FinTech Firms
4.3 Market Restraints
4.3.1 Intense Competition
4.3.2 Increasing Cybersecurity Risks
4.4 Market Opportunites
4.4.1 Evolving Blockchain Technology and Cryptocurrency
4.4.2 Collaboration with Traditional Financial Institutions
4.5 Value Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Technological Innovations in the Market
4.8 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Service Proposition
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending and Lending Marketplaces
5.1.4 Online Insurance and Insurance Marketplaces
5.1.5 Other Service Propositions
5.2 By Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 United Kingdom
5.2.2.2 Germany
5.2.2.3 France
5.2.2.4 Spain
5.2.2.5 Rest of Europe
5.2.3 Latin America
5.2.3.1 Brazil
5.2.3.2 Argentina
5.2.3.3 Mexico
5.2.3.4 Rest of Latin America
5.2.4 Asia-Pacific
5.2.4.1 China
5.2.4.2 India
5.2.4.3 Japan
5.2.4.4 South Korea
5.2.4.5 Rest of Asia-Pacific
5.2.5 Middle East and Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 Rest of Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Ant Financials
6.2.2 Zhong An International
6.2.3 Atom Bank
6.2.4 Paypal
6.2.5 SoFi
6.2.6 CoinBase
6.2.7 Robinhood
6.2.8 Adyen
6.2.9 N
6.2.10 Ally Financials
6.2.11 Oscar Health
6.2.12 Klarna
6.2.13 Avant*
7 MARKET FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
