Global fintech is exploding and will likely continue to expand its market size by a compound annual growth rate (CAGR) of more than 80% over the next five years. It is projected, by multiple services and RAM Research, the global fintech market will rake in more than US$8 billion annually by 2024.
The demand for the distributed ledger technology, reduced total cost of ownership, the rising cryptocurrencies market cap and initial coin offerings, transparency and immutability, and faster transactions are considered to be the fuel for the growth growth.
The blockchain technology can set rules for transactions and enables smart contracts; real-time settlements; triple-entry accounting; and consensus to create ownership of virtual currencies and securities, leading to higher compatibility with the financial services industry ecosystem. However, uncertain regulatory standards and frameworks, and lack of blockchain applications and use cases would restrain the market growth during the forecast period.
Fintech Hotbeds
Some of the areas within fintech witnessing significant growth include Banking-as-a-Service (BaaS), PayTech, InsurTech, RegTech, and Biometrics. The technology trends that have also significantly impacted the industry include cloud, Internet of Things (IoT), and machine learning.
The combination of fintech and blockchain is red hot in Asia-Pacfic region, as well as in Australia, China, and India, with the explosion in the Europe and U.S. likely to hit full force in 2022, notes Robert McKinley, Senior Analyst for CardFlash, CardData and CardTrak.
Fintech Developments
Breaking fintech news from CardBuzz and Bankcenter:
Visa’s Fintech Fast Track Program Goes Global
Fintech Draws Battlelines Between OCC and States
Fintechs Ease Biz Cash Flow Issues
Brazil’s Nubank Wants Fintech to Become More Inclusive
Why Banking & Fintech Struggle
FedNow Poses a Threat to ‘Fast’ Fintechs
Strivve Fintech CardUpdatr App Gets Speed
Barclays Goes All In for Female-Founded Fintechs
Neontri Brings Fintech B2B to the U.S.
Upcoming Fintech Payment Events
PYVNTS lists the following payments events, conferences, forums slated over next six months:
Singapore FinTech Festival, November 11-15, 2019 – Singapore
FinTech Connect, December 3-4, 2019 – London
Paris Fintech Forum, January 28-29, 2020 – Paris
Fintech & Emerging Payment Systems, April 28-29, 2020 – NYC
Fresh Fintech Payment Reports
PYRPTS and CardData recommend these recent Fintech reports:
European Fintech Market Outlook
Bank of America: Fintech Ecosystem
Digital Transformation and Fintech Strategies of Bank of America
Digital Transformation and Fintech Strategies of JPMorgan Chase
Fintech in Corporate Banking: Digitize or Miss the Boat
Fintech Players
Among the current “movers and shakers” in the Fintech Market, besides IBM, Microsoft, and Oracle, from RAM Research:
SOURCES: RAM Research; CardData; CardTrak; CardFlash; Bankcenter; CardBuzz; PYVNTS; PYRPTS; Ruebud Media; Red 3 Media; The Cardworthy Company; Robear’s List
