Sneak Peek into the types and advantages of emerging Fintech Market
Fintech is the acronym of the term financial technology, which is considered one of the main trends of the current digital era. This trend is gaining more prominence across the world mainly due to the fact that financial technology has the potential to make a big difference both in people’s lifestyle and in the way of doing business.
Global Fintech Market Size:
According to the Research Report by Research Cosmos, The Global Fintech Market Size is expected to be 13.2% over the period from 2019 to 2024. Most banks, insurers and global investment managers plan to partner with financial technology companies in the next three or five years and expect an average return on investment of 20% for innovative projects.
Infrastructure-based technologies, through application programming interfaces or APIs, change the future of the financial services industry and help to improve agility, efficiency, and performance through operational improvements provided by the robotic processes automation (RPA), the chatbots and the distributed registration technology. Through the use of innovative technologies, financial technology companies offer personalized, low-cost products that have a significant impact on increasing customer expectations and increasing pressure on traditional businesses, along with improved accuracy in all divisions.
North America is one of the main contributors to the world market of fintech and is expected to reach USD 80.85 million by 2023. However, it is likely that the growth rate of the Asia-Pacific region (APAC) is the highest with an annual average of 43.34% during 2018-2023. China, Japan, Korea, Australia, and India are the central contributing countries. On the other hand, Latin America is slowly emerging in the development of fintech, which is being led by Mexico and Brazil.
Types of Fintech Market:
Digital loan: This is one of the main guidelines of FinTech software development. Through the digital loan process, customers no longer need to apply for loans at banks or credit unions. These platforms allow financial companies to automate and accelerate their loan decision processes.
Digital banking: These banks allow people to manage online banking. To improve the client’s experience, online banks use innovative technologies such as face and voice biometrics, chat rooms and artificial intelligence.
Insurance: Most modern insurance companies use applications to guarantee new customers. These companies are more flexible than existing insurance companies. To provide better customer experience, Insurtech uses the advanced technologies like the Internet of Things (IoT), mobility software, data science, analytics and other digital solutions. With modern technology, InsurTech can offer personalized solutions, dynamic prices, and recommendations.
Investment: Investment solutions allow people to maintain and manage all their assets in the same place. These platforms will enable them to sell and buy financial products over the smartphone or laptop.
Payment: The largest branch of this fintech is the digital payment. FinTech allows people to spend money without using traditional banks. Companies of this category use technologies such as webcams, fingerprints, and blockchain to process payments at a lower cost than banks.
Personal Finances: You no longer have to go to traditional banks to obtain individual financial advice. Commercial software usually allows customers to manage their revenues and expenses through web and mobile services. Recently, there has been a new financial advisor (that is, a theft consultant). This is a digital platform that provides business advice online.
RegTech: Regulation and compliance management helps you solve regulatory problems and challenges through the application of innovative technologies such as machine learning and high-volume data analysis. RegTech allows banks to follow the rules continuously and carry out these analyses. These companies can automate the collection, storage and tracking of unique customer passwords through multiple devices.
Advantages of Fintech Market:
The financial technology has been criticized for not seeing much growth and development in the future. But most think differently. The reason that fintech will exist in the industry over a more extended period is that banks digitalize and make it at an alarming rate. The industry is no longer in the innovation phase and is in the process of being hired. So,within no time this technology will revolutionize the existing process in several sectors.
The rules of capitalism do not apply to the companies or organizations of fintech that participate in this industry. This is because capitalist companies have an explosive dividend and are likely to go bankrupt in the future. But every time there is a gap, fintech will have many alternative lenders that can fill in. That is why the fintech sector, which does not follow the spirit of “growth at all costs,” can undoubtedly prosper in terms of growth and professional opportunities.
The world is digitizing on a large scale, and today no one can handle transactions from a larger financial institution. Technology has reached all areas, including banking. For that, the various nuances of Fintech are the most advantageous candidates for this world of new technologies.
The acceleration of the use of the internet and the increase in the availability of spatial data are critical factors in the growth of the market.
However, the lack of specialized consultants to deploy AI to fintech hinders the expansion of the world market.
The increase in the mobile template is driving innovation in the fintech market, and the emerging markets of developing countries will be creating opportunities over the next few years.
The different services offered in the fintech division are regtech, payment/billing, insurtech, remittance, mortgage/real estate and others (loans, capital markets, property management). Among these segments, the payment/billing service segment is expected to generate significant growth in the world market and generate revenue of $ 207.1 million by the end of 2023. This growth may be due to the appearance of contactless cards and fintech companies that focused on the retail trade they want to carry everywhere in the business and extend the use of this feature.
The key technologies in the fintech field include AI (artificial intelligence), blockchain, encryption, biometrics and identity management, process automation and cybernetic security (RPA). Significant growth occurs in the AI areas and the blockchain and attracts substantial investments during the 2018-2023 forecast period.
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