Fintech - Industry - North America Market, Share and Trends 2023-2028

Summary of Fintech

North America’s fintech sector is maturing rapidly, home to global hubs, record funding, and adoption rates over 90% among digitally-active adults.  Assets reached $3.2 trillion in 2022. The U.S. and Canada anchor innovation across payments, banking, capital markets and insurance.

Based on our estimates, we can say that the regional North American Fintech industry is forecasted to be a $940.45 billion industry in 2029 from $472.5 billion in 2023 with a CAGR of 12.14 %.

Trends reflect embedding finance into daily life, platform convergence, and blockchain modernization. Challenger neobanks continue disrupting incumbents that defend market share via acquisition and adaptation. Crypto and DeFi build momentum despite recent volatility.

Regulation balances risks and barriers with “light-touch” approaches aiming to stimulate competition. The U.S. Consumer Financial Protection Bureau now oversees fintechs impacting consumers. Canada enables regulatory sandboxes. Open banking and data portability expand cautiously.

Private capital and corporate venture investment hit new records – over $70 billion deployed into North American fintech startups in 2022. The ecosystem widens – from AI/ML infrastructure to sustainability solutions. Headwinds persist around valuations and talent acquisition but the drive toward financial access accelerates.

Recent Trends and Insights

Platforms like Shopify, Amazon and Uber rapidly embed financial services once offered solely by banks. Discovery merges shopping, banking, investing and lending in one ecosystem.

Neobanks like Aspiration, Majority and Daylight target specific demographics. Vertical neobanks serve nurses & creative professionals and more. Incumbents acquire to inherit agility.

Screen scraping declines as regulators gently push for data sharing and aggregation. Plaid, Finicity and Yodlee lead consumer finance data access and transactions.

Crypto wallet adoption exceeds 50 million. Web3 models emerge across decentralized identity, lending and tokenization of assets like real estate and invoices.

Startups like WalletFi and Aspiration help consumers track carbon footprints. Renewable energy finance and ESG data analytics gain momentum as impacts from climate change accelerate.

Product Insights

Chime offers integrated banking, shopping cashback rewards, health savings accounts and auto insurance. Wells Fargo adds budgeting and financial tips in its mobile app.

Shopify partners with Stripe, Affirm and others for integrated payments, small business lending and cross-border remittances. QuickBooks Cash offers instant payouts for invoices.

Metromile pioneered pay-per-mile auto insurance. Startups like Marshmallow and Kin Insurance apply behavioral modeling for home insurance discounts.

FTX created a regulated crypto exchange offering derivatives, lending and staking. Figure built home equity lines of credit on Provenance blockchain. DeFi protocols expand.

Carbon tracking insights appear in SoFi credit card spending summaries and mobile banking apps from Ally and Aspiration. MoCaFi aggregates underbanked data for financial inclusion.

Key Companies

Some major players within this vast domain of industry are

• Stripe
• Chime
• Avant
• Wealthsimple
• SoFi Technologies
• Square
• Kraken
• Oscar Health
• Ripple

Regional Analysis

North America’s fintech industry leads globally – the U.S. and Canada account for almost half of total funding. The mature ecosystem enables scaling startups to expand globally. Cryptocurrency adoption is ahead of other regions.

Epicenters in Silicon Valley, New York, Toronto, Montreal and Vancouver anchor talent and capital. Established accelerators also transition companies from seed to growth stage, though later funding rounds face recent pressure. Partnerships with incumbents continue as the most common growth strategy over M&A.

Regulation is generally more innovation-friendly than other regions – the U.S. OCC began granting fintech bank charters in 2021. Efforts to modernize infrastructure also take root – FedNow instant payments system launches 2023. But fragmentation challenges remain – contrast 50 U.S. state regulators with EU harmonization.

Canada’s concentrated banking sector faces increased competition from digitally-native upstarts now serving over 10% of customers. The EU and U.K. continue making technological and regulatory advances but North America retains its lead for now. The drive toward embedded, personalized and integrated financial services persists across borders.

Market Segmentation

By Type:

• Ecommerce platforms and mobile apps
• AI-powered product recommendations and personalized shopping
• AR/VR for virtual try-ons and interactive displays
• IoT solutions for supply chain and inventory management

By End User:

• Retail chains, franchise brands
• Grocery stores and supermarkets
• Direct-to-consumer brands
• Online marketplaces

By Enterprise Size:

• Large retailers
• Small and mid-sized stores
• D2C startups

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North American regional fintech industry along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.