Global fintech market to grow, but gradually

The global fintech market is expected to grow gradually and reach a market value of around $324bn within four years , growing at a compound annual rate of about 25.18% over the forecast period 2022-2027.

The figures are courtesy of a new report from Market Data Forecast.

The report said: “Fintech or financial technology is a novel advancement that is gaining prominence across the globe by replacing traditional financial services in various sectors such as payments, electronic commerce, banking, social commerce, wealth management and others. As e-commerce is spreading rapidly around the world, it succeeds the key application segment of the FinTech market, which is expected to grow with a superlative annual growth rate of about 12% until 2026. With a large number of mobile users who have a penchant for online transactions, coupled with the fact that the implementation of FinTech significantly improves the customer experience by providing convenience in payments and delivery in the e-commerce, the global Fintech market demand will experience incredible growth in the future.”

It continued: “Infrastructure-based technology in the open platforms and application programming interfaces is modifying the future of the financial services industry, while the operational advancements offered by the automation of robotic processes (RPA), chatbots and distributed accounting technology (DLT) allow greater agility, efficiency and precision. Adoption of fintech services has grown at a rapid rate in the last few years among clients. Fintech helps SMEs meet their financial needs, such as banking and payments, financial management, financing, and insurance. In Asia, SMEs are pivotal, registering about 42% of GDP and accounting for almost 50% of all jobs. Nonetheless, SMEs receive only 19% of total bank credit in 2017. According to World Bank statistics, increasing credit to SMEs is an hourly necessity, because the creation of at least 1 million new jobs are needed per month. to satisfy the growing Asian workforce.”