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FinTech Market - Forecast (2022 - 2027)

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  • 119 Pages
  • January 2022
  • Region: Global
  • IndustryARC
  • ID: 5616261
The market for Fintech is forecast to reach $161.2 billion by 2027, growing at a CAGR of 8.7% from 2022 to 2027. Artificial Intelligence (AI) has taken the tech world by storm, allowing companies to automate their high-value and complicated processes. The reason to make a shift towards machine learning is also motivated by the reduction in cost, increasing efficiency, reducing error and better customer experience through improved digital lending, automated insurance and personal finance solutions. The Fintech is majorly driven by credit card fraud detection. With the help of the Generative Adversarial Network, Artifical Intelligence can spot the difference between real data and hacked data in each transaction and send an alert to banks. The biggest challenge with fintech is the sensitive issue of data privacy and security, which most fintech companies are facing. The fintech sector is governed by strict compliance with regulations and governance since any data breach or security failure could be disastrous.

Report Coverage

The report: “Fintech Market- Forecast (2022-2027)”, covers an in-depth analysis of the following segments of the Fintech Market.
  • By Services : Payments, Fund Transfer, wealth Management, personal Loans and P2P Lending, Insurance, personal Finance and others
  • By Technology : AI, Blockchain, Analytics, Mobile Commerce, Cyrptography, Cloud Infrastructure, Biometrics, RPA, Cyber Security and Others
  • By Application : Retail Banking, Investment Banking, Hedge Funds, Stock Trading Firms and Others
  • By Geography : North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Australia and Others), South America(Brazil, Argentina and others), and RoW (the Middle East and Africa).

Key Takeaways

The advent of technology is bringing up a new breakthrough every now and then and AI has certainly changed the way of data collection, data integration, analysis and deployment.

As far as financial technology is concerned, the trend of these “robo-advisors” has brought in a drastic improvement in customer interaction and customized revenues.

Systems such as chatbots, voice systems, and text chats are designed to replace the human intervention while being cost efficient. They are even intended to recognize and prevent fraud attempts. On the other hand, automated financial assistants and planners became handy in monitoring events and help customers in making financial decisions.

Fintech Market Segment Analysis - By Service

In the FinTech sector transaction type segment discuss about the payments, financial institution and insurance. Insurance occupied the largest market share in 2020 at 16.5%. The use of FinTech technology across the financial services industry is growing. The emergence of services such as PayTech, RegTech, InsurTech, and digital banking highlight the ways in which digitalization has impacted the FinTech industry. These consumer demand in improved access and anytime anywhere services is achieving greater transparency and will lead the market in the period of 2022-2027.

Fintech Market Segment Analysis - By Technology

AI is the fastest growing segment at 21.6% through 2026. AI can be used to find the relation between world events and their impact on prices by using predictive analysis. This information is very useful for any kind of wealth investment. AI in financial services is used to protect the details of their customer. AI is playing a major role by quickly assessing the large algorithms to protect from fraudulent cases. AI is used to advise the accurate result. P2P organization analyze their potential customer’s behavior and detect all the risk in the cooperation with that particular customer.AI also helps in analyses consumer’s details who doesn’t have a past credit history or his credit history is destroyed. This growing list of applications will be the major driver of the adoption of AI in the Fintech sector. Another application driven by new technology developments has been robo advisors. Robo- advisor keep monitoring on the events, stocks, bond and price trend according to user’s requirement which help them in making suggestion regarding which stock needs to be sell or buy. They play a very important role in risk management, speech recognition, network security access to big data etc. These technology developments will create new avenues of opportunity for Fintech thereby driving the market growth.

Fintech Market Segment Analysis - By Geography

APAC region holds the largest market share in the Fintech Market at 34% in 2020. However, Asia Pacific is also set to witness the highest growth during the forecast period. North American Fintech Market is mainly driven by a large number of startups and emerged companies offering AI services to financial services. The key applications include Virtual Assistant, Business Analytics & Reporting, Customer Behavioral Analytics among others.

Fintech Market Drivers

Focus of Companies on Cost Reduction and Improving Efficiency

Fintech is allowing companies to cut down their cost, automate their process and reduce the chances of error. AI Chatbots are used by companies as customer assistants for various purposes such as sales, customer care executive (over the phone), and online chat executive. AI is empowering small finance companies as it is affordable as well as chances of error occurrence are very low. In addition, the insightful details about the cash flow and income and expense are gaining the traction from the end user as this helps companies to reduce their expenses.

New Technological Advancements drives Adoption of Fintech

According to McAfee cybercrime currently costs the global economy around $600 billion, or 0.8% of global GDP. One of the biggest cybercrimes is credit card fraud. Thus companies are designing a new generation of algorithms that are Convolutional Neural Networks and are based on the visual cortex, which is a small segment of cells that are sensitive to specific regions of the visual field in the human body. This means that they are able to extract elementary visual features like oriented edges, end-points and corners. This technology can study the spending data of an individual and be able to determine, based on this information, whether they performed the most recent transaction on their credit card or if someone else was using their credit card data.

Fintech Market Challenges

Concerns Regarding Data Privacy

The biggest challenge with technology adoption in fintech is the sensitive issue of data privacy and security, which most fintech companies are facing. The fintech sector is governed by strict compliance with regulations and governance since any data breach or security failure could be disastrous. Privacy concerns are cropping up as companies feed more and more consumer and vendor data into advanced technologies whether it is analytics, AI or blockchain to create new bits of sensitive information, unbeknownst to affected consumers and employees. This is especially prevalent in the retail banking sector, where consumer data collection has been at the forefront in terms of big data challenges. These data privacy concerns will hinder the adoption of AI especially in the banking sector.

Fintech Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Fintech Market. Microsoft, Google, IBM, Intel, Affirm, Upstart, Sigmoidal, Zest Finance and Amazon are considered to be the key players in the Fintech Market.

Acquisitions/Technology Launches/Partnerships

In May 2021, Healthcare Fintech Cedar announced a $425 million acquisition of San Francisco-based OODA Health for a mix of cash and equity. The move was fueled by a $200 million Series D cash injection in March led by Tiger Global Management

In May 2021, Corporate finance software provider Bill.com LLC has signed a $2.5 billion deal to acquire DivvyPay Inc., better known as Divvy, whose cloud service enables companies to issue business credit cards to their employees.

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Table of Contents

1. Fintech Market Overview
1.1 Definitions and Scope
2. Fintech Market - Executive Summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key trends By Service
2.3 Key trends segmented by Geography
3. Fintech Market - Market Landscape
3.1 Comparative Analysis
3.1.1 Product/Company Benchmarking-Top 5 Companies
3.1.2 Top 5 Financial Analysis
3.1.3 Market Value Split by Top 5 Companies
3.1.4 Patent Analysis
3.1.5 Pricing Analysis (Comparison of General Price Offerings for Key Companies)
4. Fintech Market - Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Porters five force model
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining powers of customers
4.3.3 Threat of new entrants
4.3.4 Rivalry among existing players
4.3.5 Threat of substitutes
5. Fintech Market - By Strategic Analysis
5.1 Value Chain Analysis
5.2 Opportunities Analysis
5.3 Product Life Cycle/Market Life Cycle Analysis
5.4 Suppliers and Distributors
6. Fintech Market - By Service (Market Size -$Million/Billion)
6.1 Payments
6.2 Fund Transfer
6.3 Personal Finance
6.4 Personal Loans and P2P Lending
6.5 Insurance
6.6 Wealth Management
6.7 Others
7. Fintech Market - By Technology
7.1 Analytics
7.2 Data Analytics
7.3 Mobile Commerce
7.4 Artificial Intelligence
7.5 Cyber Security
7.6 RPA
7.7 Biometrics and Identity Management
7.8 Blockchain
7.9 Cloud Infrastructure
7.10 Cyryptography
7.11 Others
8. Fintech Market - By Application (Market Size -$Million/Billion)
8.1 Trading
8.1.1 Hedge Funds
8.1.2 Trading Firms
8.1.3 Stock Exchange
8.2 Banking
8.2.1 Retail Banking
8.2.2 Investment Banking
8.2.3 Corporate Banking
8.3 Payment Processors
8.4 Taxation
8.5 Insurance and Security Brokerage
8.6 Others
9. Fintech Market - By Geography (Market Size -$Million/Billion)
9.1 North America
9.1.1 U.S
9.1.2 Canada
9.1.3 Mexico
9.2 Europe
9.2.1 Germany
9.2.2 France
9.2.3 UK
9.2.4 Italy
9.2.5 Spain
9.2.6 Russia
9.2.7 Netherlands
9.2.8 Others
9.3 APAC
9.3.1 China
9.3.2 Japan
9.3.3 South Korea
9.3.4 India
9.3.5 Australia
9.3.6 Indonesia
9.3.7 Malaysia
9.3.8 Others
9.4 South America
9.4.1 Brazil
9.4.2 Argentina
9.4.3 Chile
9.4.4 Colombia
9.4.5 Others
9.5 RoW
9.5.1 Middle East
9.5.2 Africa
10. Fintech Market - Market Entropy
10.1 New product launches
10.2 M&A's, collaborations, JVs and partnerships
11. Fintech Market - Company Analysis
11.1 Company 1
11.2 Company 2
11.3 Company 3
11.4 Company 4
11.5 Company 5
11.6 Company 6
11.7 Company 7
11.8 Company 8
11.9 Company 9
11.10 Company 10