The global fintech market size stood at $112.5 billion in the year 2021 and is expected to reach $332.5 billion by the year 2028, exhibiting a CAGR of 19.8%. 1 The market is propelled by a confluence of factors, including the increasing compatibility with the financial services industry ecosystem and the expanding market capitalization of cryptocurrencies and initial coin offerings (ICOs). Furthermore, there is a rapid growth of digital technology within the financial sector, leading to notable innovations such as mobile money, peer-to-peer (P2P) or marketplace lending, robo-advice, Insurtech (insurance technology), and the emergence of crypto-assets. These advancements have gained significant traction globally, reshaping and revolutionizing the financial landscape. The global fintech lending market size is projected to expand from $1.38 trillion in 2022 to $23.11 trillion by 2032, reflecting a compound annual growth rate (CAGR) of 32.5%. 2 This growth trajectory highlights the significant opportunities and increasing demand for fintech lending solutions in the coming years. Fintech lending platforms have gained popularity among businesses due to their ability to provide expedited and simplified loan application processes, swift approval timelines, and flexible loan terms. These features make them highly appealing alternatives to traditional lenders.
FinTech has emerged as a key catalyst in driving market growth, offering convenient services, and fostering transparency, particularly in terms of financial inclusion. This has positioned FinTech as a pivotal force in the market. Moreover, financial institutions are increasingly embracing advanced technologies to deliver integrated and value-added services to customers, while collaborations between national regulators and financial bodies further propel the adoption of FinTech solutions. Conversely, developing economies present substantial opportunities for FinTech technology companies to expand their offerings. Factors such as the growing middle-class segment, rapid urbanization, rising literacy levels, and an increasingly tech-savvy youth generation contribute to favorable market conditions. Furthermore, the mandatory application of General Data Protection Regulation (GDPR) guidelines is anticipated to create lucrative opportunities throughout the forecast period, ensuring enhanced data privacy and security for customers. Overall, the convergence of convenience, transparency, technological advancements, and strategic partnerships are driving the growth of the FinTech technologies market, while developing economies and regulatory frameworks offer promising avenues for expansion and innovation.
1.https://www.globenewswire.com/en/news-release/2022/05/09/2438281/0/en/Insights-on-the-332-5-Bn-Fintech-Market-is-Expected-to-Grow-at-a-CAGR-of-over-19-8-During-2022-2028-Vantage-Market-Research.html