Nov 8,2021 | Information Technology
The rising popularity for digital payments, increased investments in technology-based solutions, supportive government regulations and growing adoption of IOT devices are expected to positively influence the global FinTech market in the coming years.
Arising innovations like mobile wallets, digitized money, paperless lending, etc., and adoption of e-commerce platforms across the economies, coupled with rising smartphone penetration have paved the way for increasing FinTech transactions. However, concerns related to data security, lack of mobile and technology expertise may hamper the FinTech market during the forecast period.
Global FinTech Market was valued at US$7301.78 billion in 2020 and is projected to grow at a CAGR of 26.87% during the forecast period. The market can be segmented into technology, service, application, and region. Based on technology, the market can be segmented into API, AI, blockchain, distributed computing and others, including big data, robotic process automation, etc.
The AI segment is expected to witness the highest growth rate through 2026. AI has become a critical element of the FinTech industry in terms of collecting data, analysing information, and creating customer-centric products. The banking firms across the globe, in order to prevent the loss of sensitive customer information, are implementing advanced risk analytics and fraud detection capabilities that are powered by AI. Increased implementation of advanced risk analytics and fraud detection is contributing to the growing share of the segment.
Asia-Pacific region is expected to exhibit the highest growth in the forecast period primarily on the account of expanding customer base, largest population share of Gen Z and millennials, and willingness to accept new technology and huge market opportunity to convert from cash to digital payments.
The major players operating in the Global FinTech Market are Ant Group Co. Ltd., Paypal Holdings Inc., Tencent Holdings Ltd, Robinhood Markets Inc., Google Payment Corp., One97 Communications Ltd., Adyen NV., Qudian Inc., Afterpay Limited, Nexi SpA, Klarna Bank AB, Social Finance, Inc., Avant, LLC. These companies are developing advanced technologies and launching new products to stay competitive in the market. Other competitive strategies include mergers and acquisitions and new service developments.
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