By 2030, the fintech industry will grow to 6 times its current size
Consulting firms BCG and QED have released forecasts for the financial technology sector. According to the analysis, the fintech industry will reach $1.5 trillion by 2030, a sixfold increase from the current $245 billion. The financial technology segment accounts for 2% of the global fintech market revenue. This will rise to 7% by 2030.
According to experts, 2022 was a very challenging year for fintech. During this period, the value of many companies in the sector fell by more than 50% compared to previous estimates. However, analysts point out that the decline is short-term. In the longer term, companies will regain their position.
The Asia-Pacific region is predicted to be well positioned to lead the fintech market by 2030, overtaking the current leader, the US. The CAGR for APAC is expected to be 27%. The development of the fintech sector in the region is primarily driven by the strong development momentum in India, China and Indonesia. These countries are home to some of the world’s largest financial technology service providers. In addition, these countries offer a good environment for starting a business in the sector. There is also a growing demand for fintech products from companies and the public, thanks to rising living standards and an expanding middle class.
Fintech startups in USA and EU
At the same time, experts believe that North America, now a significant market for financial services, will continue to grow strongly. The region will continue to be a hub for innovative development. By 2030, the North American fintech market will be worth USD 520 billion, growing four times faster than today.
The EU and UK will be the third largest fintech market. The fintech industry will grow fivefold during this period. The payments industry will reach US$520 billion. The main drivers will be the demand for payment applications and the growth in the number of cross-border transactions.
According to official statistics, there are now more than 26,000 registered fintech start-ups in the world, although there were only 12,000 in 2019. This sector is growing at around 20% per year, which is high considering the negative factors that have affected the global economy.
Technical solutions for the e-commerce segment are the most sought-after in the market, driven by a surge in this segment from 2020. Another promising area is open banking, which is a set of solutions using open applications. Such APIs are mandatory in Mexico, the UK and Australia.
