peekpublishers
TLDR:
- The fintech market size is projected to grow from $294.74 billion to $882.30 billion by 2030.
- The Covid-19 pandemic accelerated the digital transformation of financial services, leading to increased demand for financial technology platforms.
A recent report from Fortune Business Insights has projected that the fintech market size is projected to grow from $294.74 billion to $882.30 billion by 2030. The report stated that the Covid-19 pandemic accelerated the digital transformation of financial services, as businesses and consumers increasingly turned to online and mobile banking, due to the growing demand for financial technology platforms. In addition, financial technology companies offering payment and transaction processing services experienced a surge in demand as e-commerce, contactless payments, and digital wallets became more prevalent during the pandemic. The economic impact of the pandemic led to an increased demand for lending and credit services, which saw companies offering digital lending platforms and credit scoring solutions record massive growth in the period. With the integration of the latest trends in fintech platforms such as Artificial Intelligence and Machine Learning, it has continued to play an important role in meeting customer demands which has propelled the market growth. These innovative technologies enhance fraud detection, customer service, credit scoring, and personalization of financial services.
The artificial intelligence (Al) segment is poised to grow at the highest CAGR during the forecast period. Al-powered chatbots and virtual assistants provide instant and efficient customer support, improving the overall customer experience. In addition, Al can quickly identify and flag potentially fraudulent activities, reducing the risk of financial fraud, which is expected to help the fintech industry grow in the upcoming years. With increased digital financial transactions, there is a growing emphasis on Cybersecurity. Financial technology companies are developing advanced security measures to protect financial data and transactions. Moreover, demand for real-time payments is on the rise as financial technology service providers are delivering solutions that enable instant, cross-border, and secure transactions. The fraud monitoring segment is reported to have captured the largest share of the market in 2022.
Based on region, North America is leading the fintech market share globally with a market value of $89.61 billion in 2022. The region, particularly Silicon Valley, is a global center for fintech innovation. According to the survey, the Asia Pacific region is anticipated to overtake the U.S. and become the world’s largest market by 2030. As key companies are emphasizing the expansion of their geographical boundaries globally by introducing industry-specific solutions, these companies are strategically acquiring and collaborating with local players to capture a regional hold. These key players in the industry are introducing new products to attract new customers and retain their customer base.
