Fintech - Industry - Global Market, Share and Trends 2023-2028

Summary of Fintech

The global fintech industry has seen tremendous growth over the past decade, driven by advancing technologies, evolving consumer preferences and new regulatory frameworks supporting innovation. Total investment into fintech companies reached nearly $130 billion in in recent times, underscoring bullish investor sentiment around the potential for digital disruption of financial services. Based on our estimates, we can say that the global Fintech industry is forecasted to be a $3915.3 billion industry in 2029 from $1,750 billion in 2023 with a CAGR of 13.84%.

Fintech is the integration of technology into financial services to optimize, innovate and improve the established financial methods. It aims to make financial operations more competent, accessible and customer friendly. It incorporates various applications, such as online banking, mobile payments, investment management and insurance.

It influences a multitude of areas like peer-to-peer lending, crowdfunding platforms, robo-advisors for investment and cryptocurrency and blockchain applications. It facilitates financial inclusion by offering low-cost services and– in that way—empowers a larger segment of the population through mobile apps and platforms.

Many factors that are influencing this space are– the rising adoption of open banking APIs enabling new types of fintech partnerships, growth of embedded and invisible finance solutions, and increasing focus of startups on underserved customer segments in developing markets. Major technology themes include the rise of digital wallets, “buy now pay later” services, blockchain-based platforms and use of AI for personalized financial advice and anti-fraud solutions.

Recent Trends and Insights

Over 70% of global consumers now use online and mobile banking according to a survey by Accenture. This rapid shift to digital financial services has been a major driver of fintech innovation.

The Fintech phenomenon refers to startups that use the latest technologies to offer innovative financial services, and it has challenged the traditional way of offering financial services to companies in more agile, flexible, transparent and economical ways.

Fintechs like PayPal, Klarna and Affirm have popularized “buy now pay later” services which are expected to account for over 30% of e-commerce payments by 2026 (Business of Fashion).

Fintech has brought disruption and opportunity in equal measure to the financial sector and it will be crucial that companies use a strategic approach to harness fintech potential.

Startups are exploring blockchain applications for areas like digital identity, supply chain financing and cross-border remittances to reduce costs compared to traditional solutions.

Product Insights

Fintechs are developing new payment methods that offer consumers flexibility and rewards. For example, Affirm allows shoppers to split purchases into monthly installments at checkout on sites like Amazon and Walmart, processing over $9 billion in transactions in 2021. Digital wallets like Apple Pay and Google Pay have made mobile payments ubiquitous, accounting for $1 trillion in annual volume according to Juniper Research.

By embedding financial services into everyday sites via APIs, companies are creating banking experiences without the need for separate apps. Stripe allows online sellers to offer financing directly on their websites. Over $250 billion was originated via embedded finance in 2021 per Cornerstone Advisors.

Mint and Personal Capital help users link all accounts to view spending trends, budgets and investments in one place. 61% of US adults now use PFM tools regularly, up from 49% in 2015 (Forbes).

Platforms like Kickstarter, GoFundMe and Kiva have connected individuals and businesses to new sources of funding. LendingClub and Prosper pioneered peer-to-peer lending with over $100 billion in loans originated.

Key Companies

Some major players within this vast domain of industry are

• Paypal
• Stripe
• Square
• Plaid
• Robinhood
• Google Pay
• Paytm
• PhonePe

Regional Analysis

Some major regions represent the largest combined fintech market, projected to be worth $305 billion by 2023 according to a market intelligence report. The North American include most of the leading hubs of the world.

European regions have historically been recognised as financial centers– new regulations have opened markets across Europe to more competition. Many major centres have shifted their operations to various other EU centres.

Asia’s fintech industry is the largest and fastest growing globally, projected to reach $353 billion by 2023 per an intelligence report. Some rapidly evolving countries are also emerging hotspots.

A few countries within the region have become regional leaders– adoption rates above global averages according to the market survey.

An urban country has pioneered mobile money through M-Pesa. Majority of the gulf countries are investing in Islamic fintech and digital banking solutions.

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/banks
• Small and mid-sized stores/banks
• D2C startups

By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Our Methodology

We have offered a well-founded review of the global 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.