By Alexander Chiejina
The analysis predicts that Asia-Pacific (APAC), with a projected CAGR of 27 percent, would surpass the United States of America and take the top spot in the global fintech market by 2030. Similarly, North America will continue to be a crucial fintech market and innovation engine, estimated to grow fourfold to $520 billion in 2030. North America now has the largest financial services business in the world, (a CAGR of 1%), with the US expected to contribute 32% of worldwide fintech revenue growth.
The third-largest financial institution industry in the world, which includes the UK and the EU, is predicted to experience significant expansion through 2030—more than five times over 2021. Like this, it is anticipated that Latin American markets, led by Brazil and Mexico, which have mature fintech ecosystems, will exhibit a revenue CAGR of 29 percent over the same time period.
The COVID-19 pandemic enhanced existing tendencies toward the digitalization of financial services and created a favourable atmosphere for new technology, even though fintechs were previously seen as mostly peripheral to the financial services sector. Fintechs have consequently entered the mainstream in some industries, including payments and transaction banking.
Fintechs have received more than $500 billion in capital during the last ten years. Since 2019, they have gotten almost 20 percent of all venture capital investments made worldwide, which has attracted a lot of money from investors outside the financial services industry, including generalist investors, investors in technology, private investors, and hedge funds. Such funding was occasionally stimulated by a speculative frenzy in sub-segments like cryptocurrency and its supporting technology.
Together, 2021 and 2022 saw more than $50 billion in fundraising for cryptocurrencies, or around 75 percent of total funding for cryptocurrencies up until 2022. With public valuations exceeding $1.3 trillion at its peak in 2021, fintechs made up about nine percent (9%) of all financial services valuations globally, which is a multiple of 20 times annual revenue compared to the historical, pre-2018.
- Increasing smartphone adoption, expanded network coverage, including rapidly urbanising population fueling fintech growth.
The analysis predicts that Asia-Pacific (APAC), with a projected CAGR of 27 percent, would surpass the United States of America and take the top spot in the global fintech market by 2030. Similarly, North America will continue to be a crucial fintech market and innovation engine, estimated to grow fourfold to $520 billion in 2030. North America now has the largest financial services business in the world, (a CAGR of 1%), with the US expected to contribute 32% of worldwide fintech revenue growth.
The third-largest financial institution industry in the world, which includes the UK and the EU, is predicted to experience significant expansion through 2030—more than five times over 2021. Like this, it is anticipated that Latin American markets, led by Brazil and Mexico, which have mature fintech ecosystems, will exhibit a revenue CAGR of 29 percent over the same time period.
The COVID-19 pandemic enhanced existing tendencies toward the digitalization of financial services and created a favourable atmosphere for new technology, even though fintechs were previously seen as mostly peripheral to the financial services sector. Fintechs have consequently entered the mainstream in some industries, including payments and transaction banking.
Fintechs have received more than $500 billion in capital during the last ten years. Since 2019, they have gotten almost 20 percent of all venture capital investments made worldwide, which has attracted a lot of money from investors outside the financial services industry, including generalist investors, investors in technology, private investors, and hedge funds. Such funding was occasionally stimulated by a speculative frenzy in sub-segments like cryptocurrency and its supporting technology.
Together, 2021 and 2022 saw more than $50 billion in fundraising for cryptocurrencies, or around 75 percent of total funding for cryptocurrencies up until 2022. With public valuations exceeding $1.3 trillion at its peak in 2021, fintechs made up about nine percent (9%) of all financial services valuations globally, which is a multiple of 20 times annual revenue compared to the historical, pre-2018.