As of 2018, US accounts almost 57% of the global fintech market followed by Asia and Europe at 31% and 10% respectively.
However, the adoption of fintech is limited at 46% in the country. The rise of digital only banks and mobile payments has led to increase in penetration of fintech money transfers and payment services.
- Definition / Scope
- Market Overview
- Market Risks
- Market Trends
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Distribution Chain Analysis
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Generally, the term Fintech represents ‘Financial Technology’ where the technology represents mostly digitalization within the Banking & Financial services industry.
The scope of the technology covers digital infrastructures allowing establishment of new types of agreements and procedures in classic areas of banking such as lending, investment strategies and payments.
Some of the benefits of leveraging fintech technologies include: convenience of use or access via internet & mobile phones, increase in processing speed, reduction of costs, higher transparency and much focus on consumer experience.
At present, Fintech market can possibly be sub-divided into two sectors namely, banks & non-banks. The non-banking sector utilizing fintech include startups and businesses without bank licenses.
The latter sector focuses on modern banking value chain and is utilizing fintech to unbundle traditional banking business models.
The four most common categories of Fintech are as follows:
Digital Payments: The segment includes consumer payment transactions for products and services made via internet as well as mobile PoS or smartphone applications. In the US, the segment is the largest, both in terms of number of transactions and with most penetration.
Personal Finance: The segment accounts for technologies such as automated investment services i.e. Robo-advisors and digital remittances. However, online brokers without automated or recommendation-based advisory roles and domestic online payment doesn’t fall under the scope of this segment. This is the second largest segment in the US Fintech market.
Alternative Lending: This market segment includes digital financial services for business or institutional customers as well as private borrowers. The segment mostly focuses on lending to SME’s, freelancers and private individuals. Thus, crowd lending and marketplace lending is provided via online platforms.
Alternative Financing: This is the final segment of Fintech where the business models particularly lie in crowd investing models, other solutions such as non-monetary compensation for instance, product launches, music & film financing etc., applications that are mostly reward, loyalty or monetary based.