The Global FinTech Industry Market is expected to be valued at $382.38million by 2027, exhibiting a CAGR of 7.05% during the forecast period (2020-2027), a report published by Coherent Market Insights has highlighted.
Services provided by fintech companies range from traditional banking services such as payment services and fund transfers to technologically advanced banks such as Neo Banks and financial platforms such as Buy Now Pay Later services. Moreover, in recent years many variations have occurred in fintech services, in which tailored technologies are offered for specific functions or sectors such as Insurtech, Regtech, etc.
In addition, the Fintech industry is increasing in emerging economies across the globe such as India and China. For instance, according to Invest India, in the year 2019, the overall transaction value in the Indian fintech market was $65billion, and it is expected to increase up to $140billion by 2023. The growth of the fintech industry in the region is majorly due to high-level banking services penetration due to central government initiatives such as Jan Dhan Yojana, high smartphone penetration, and growing disposable income. The key segments included in the fintech industry are digital payments, digital lending, banking technology, insurance technology, and wealth technology.
Key Trends and Analysis of the Global fintech industry analysis:
- Among industries, the retail & e-commerce segment is expected to have the highest growth during the forecast period. Retailers have upgraded their payment devices with advancements in the payment industry. With the rising adoption of digital wallets and mobile payment, retailers are providing payment requests as per the requirements of the customers. Moreover, vendors are also supporting payment through QR (Quick Response) code scanners, POS (Point of Sale), and NFC (Near-field communication) compatible devices. For instance, according to Worldwide Market Reports’ analysis, it is estimated that 1,950 million people purchased goods and services from online platforms and e-retail sales crossed US$ 3.5 trillion in 2019.
- Asia Pacific is expected to exhibit the highest growth during the forecast period owing to increasing initiatives for the cashless transition by the government bodies. For instance, in July 2015, the Digital India program was launched by the Government of India, which is a flagship program of India to transform the country into a digitally empowered country. In the financial year 2017-18, the Finance Minister of India announced a target of $340,000 million digital payment transactions by various platforms.
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