FinTech (Financial Technology) is now a buzzword in the financial market. It refers to computer programs and other modern technologies used by businesses that provide automated and improved financial services. Over the years, the fintech industry has evolved in significant ways leading the transformation of companies towards a customer-centric business. Thus, finding a place across a plethora of companies ranging from startups to tech companies to established firms all over the world. With either a collaborative or a challenging approach, financial services companies and tech companies have taken up each other’s lanes and progressing with disruptive and innovative propositions in an ever-evolving business landscape.
Various Crises have acted as the catalyst for the development of the FinTech Market. Since the last global financial crisis, investments in Fintech have been growing. The expansion of the sector was largely a technological response to the shortcomings of the traditional financial services industry, which came under extreme pressure during and after the crisis. Similarly, Covid-19 has also severely impacted the Global economy and initiated the recession. This crisis has resulted in the accelerated development of the FinTech industry. In response to Covid large financial institution are partnering with the emerging technology Companies to access the new market. While Fintech are themselves seeking to team up with the large financial institution to expand their market and services. In any way the Fintech market is developing.
In the recent years, many variations of fintech have emerged that use cutting edge technologies tailored for specific functions or sectors such as Insurtech, Regtech, payment services etc. Now that fintech industry is clearly more than a hype, the extent of execution achieved in organizations’ strategy gathers importance. The technology aspect of th Fintech industry is growing rapidly. The Fintech are increasingly using technology such as Blockchain, Application Programming Interface (API), Robotic Process Automation, Data analytics etc. Which are enabling greater agility, efficiency, and accuracy.
Key Market Trends
The APAC And Americas Command The Highest Market Share Of The Global Fintech Market.
The Fintech markets in the APAC and Americas regions are currently the largest, with both having more than 40% of the global market share. The EMEA region is significantly smaller, with less than 20% of the total market share. The Fintech market in the APAC region is projected to be the fastest-growing. Financial Apps are rapidly gaining popularity in the Asia-Pacific region. It was found that there were over 1230 fintech apps available in APAC, and marketers have spent US$ 244 million to acquire new users in 2020 alone. Within APAC, a total of 2.7 billion installations occurred between Q1 2019 and Q1 2021.
India and Indonesia, together with Brazil, make up almost half of global fintech app downloads. This is not surprising, given that these mega developing markets comprise massive numbers of unbanked and underbanked customers, especially in Indonesia.
The Total Global Investment in Fintech Rose for the First Half of 2021
After the Unexpectedly strong 2021, the investment in the first half of 2021 sees a massive rebound. The investment in all three categories of Venture Capital, Private Equity, and Merger & Acquisition as a whole is expected to show growth in 2021.
Similarly, M&A activity will likely grow considerably as corporates look to expand their capabilities and offerings and FinTech’s look to scale. Cross-border activity will likely also be robust as FinTech’s look to become global or regional leaders. This could also drive the return of major mega M&A transactions.
In the present scenario, large financial institutions with a long history in the financial market are seeking to team up with emerging technology to expand their market. Similarly, FinTech startups themselves are partnering with large and established financial institutions to enhance their growth and market. So, M&A deals are increasing in the FinTech market. The Major players of the market include; Ant Financials, Zhong An, Atom Bank, SoFi, Paypal, Coinbase, Robinhood, Adyen, etc
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1.2 Scope of the Study
4.1.1 Companies Active in the Fintech Market, By Region
4.1.2 Country Wise Business Trends in Fintech Market - Collaborative or Collision Type
4.1.3 Funding Statistics
4.1.4 Revenue Statistics
4.2 Insights on Insurtech and Regtech Segments Across the Globe
4.3 Market Drivers
4.3.1 Fintech in Organisation's Strategy - Extent of Execution
4.3.2 Latest Technologies And Their Multiple Use Cases
4.4 Market Restraints
4.4.1 Security and Data Privacy
4.4.2 New Systems Posing Threat to Legacy Systems
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Regulatory Sandbox
4.6.1 Regulatory Landscape across the Globe
4.6.2 Business Models with Potential Regulatory Roadblocks
4.6.3 Scope for Development in lieu of Evolving Business Landscape
4.7 Fintech for MSMEs
4.7.1 Region Wise Market Potential of MSMEs
4.7.2 Fintech Role in Accelerating the Development of MSMEs
4.7.3 Role of Open Banking to Support Financing for MSMEs
4.8 Impact of Covid-19 on the Market
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending & Lending Marketplaces
5.1.4 Online Insurance & Insurance Marketplaces (Insights into Life & Non life segments covered)
5.1.5 Others (E-Commerce Purchase Financing, etc)
5.2 By Geography
126.96.36.199 Rest Of Europe
5.2.2 North America
5.2.3 Latin America
188.8.131.52 South Korea
184.108.40.206 Rest of APAC
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of MENA
6.2 Company Profiles
6.2.1 Ant Financials
6.2.2 Zhong An International
6.2.3 Atom Bank
6.2.9 N 26
6.2.10 Ally Financials
6.2.11 Oscar Health
A selection of companies mentioned in this report includes:
- Ant Financials
- Zhong An International
- Atom Bank
- N 26
- Ally Financials
- Oscar Health