US Financial Technology Market Outlook To 2020: Ken Research

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US Financial Technology Market Outlook To 2020
Ken Research
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How has the P2P Lending Segment Grown? The P2P
Lending model or the peer to peer lending model
has been gaining high popularity in the US
especially amongst the borrowers. This is mainly
because of its low interest rates, simplified
application process, and faster lending
decisions. This model is rapidly intensifying to
new product categories including mortgages
student loans, small business loans and others.
P2P Lending platforms seemed to have found a
forte by offering it s customers i.e. both
borrowers and investors better customer
experience and faster. Big data and other such
technologies have been helping the technology
driven marketplace investors.
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The investors can look onto the borrower profile
and select to which borrower he wants to extend
the loan to. Although the market is still in its
infant stage, the platform issued around USD
million in 2015 increasing at a CAGR of from
2010 to 2015. Major players in the market include
Lending Club, SoFi, Prosper and others with
Lending club leading the market in terms of the
loan disbursed followed by SoFi and Prosper as of
2015. The P2P Lending appeals to underserved
millennials to provide them with opportunities
for accessing the credit from these sources since
there are times when they are not able to do it
from the banks. Currently the target population
is around 65 million and still growing which
provides high growth opportunity for the market
in the future. It is expected that the market
will move towards high concentration since rising
interest rates will put pressure on the
refinancing activities and hence smaller player
would face troubles attracting borrowers. It is
also expected that the wide range of investors
would eventually be replaced by higher proportion
of large supplies such as institutional investors
and banks since they have been drawn to the
marketplace by strong unlevered yields and
expected credit performance across a large
portfolio of loans. The market is expected to
grow and reach the levels of USD Billion by 2020
in terms of loan disbursed.
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What is the Future Outlook of Robo Advisor
Market? During the past few years from 2010 to
2015, the technologies such as the big data,
machine learning and others have been attracting
considerable investment and attentions. These
firms leverage algorithms and client information
to develop preset portfolio distribution and
suggestions for investments particular to the
individual clients. The advisors can be accessed
via rich digital user interface and at very low
fees. Albeit the high growth of the robo advisors
in the investment market, they still are at a
very nascent stage with only around of the
total invested assets under management. Since the
robo advisors use algorithm driven automated
investment techniques, they incur less cost and
hence are priced lower than the traditional
investment advisors. The traditional advisors
charge around of the management fee while the
robo advisors charge only one third or even a
quarter of the fee charged by a traditional
investment advisor.
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The robo advisors offer higher transparency as
compared to the traditional investors and hence
attract more investments. The market has grown
from USD Billion in 2010 to around USD Billion
in 2015 Major players in the market on the basis
of asset under management include Vanguard with a
share of followed by Charles Schwab
Intelligence Portfolio with share in total
assets under management. Most of the underserved
clientele of the financial advisory space have
been the people whom either manage their own
assets or do not prefer to go to the advisors due
to the high fees. Robo advisors have provided
advanced advisory services which have made the
automated portfolio management accessible,
affordable, and amazingly convenient. Moreover,
robo advisors offer customized advices according
to clients need and wants anytime they want.
They use advance algorithm driven investment
software and analytics technique which makes
their services more reliable (since there wont
be difference of interests) and cheaper.
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How has the Business Lending Segment
Performed? Small and medium sized enterprises
(SMEs) are considered as one of the major drivers
of economies and a reckoning force in job
creation. They accounted for more than half of
the worlds GDP and employ almost two-thirds of
the global work force. Small businesses always
have a hard time to secure financing as compared
to larger established players in any industry.
The challenges have grown even more in the recent
years amidst the backdrop of global financial
crisis of 2007-008 and higher regulations and
capital costs for loans. In the US, bank debt
accounted for more than USD billion of SME
funding, followed by credit card debt of about
USD billion as of 2015. Small businesses with
revenues of more than USD 500,000 per year
account for about of all credit revenues of
banks. The US FinTech business lending market has
grown at an unprecedented pace in the last five
years from USD million in 2010 to USD million
in 2015 in terms of loan disbursed. This
represented growth at a CAGR of between 2010
and 2015.
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The major players in the business lending market
include Funding Circle, OnDeck, Kabbage, CAN
Capital and others with OnDeck and CAN capital
leading the market in terms of loan disbursed.
The business lending market has grown at an
impressive CAGR of from 2010 to 2015 and is
expected to grow further at remarkable rate. In
the short term scenario, the market is expected
to show a lower rate of growth since past two
years have not only been the years of innovation
but also startups which mean high growth and
newer business models. It is expected that the
market will show the correction phase along with
the consolidation in the market. However this
would act as a much needed pain and the industry
will still rise fueled by the increasing number
of small businesses, startups and their mounting
capital needs, innovation in technologies such as
for risk minimization and process streamlining
will help the market stay on a growth trajectory.
In the longer run, the overall scenario remains
positive. The market is expected to reach USD
Billion by 2020.
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Key Factors Considered in the Report Comprehensiv
e analysis of the US FinTech market and its
segments Listed major players and their
offerings Identified major developments in last
few years and assessed the future growth of the
industry Government initiatives taken to
stimulate the growth of the market. US
Financial Technology MarketUS P2P Lending
MarketUS Digital Payments MarketUS Mobile
Wallet Market Market Size Robo Advisors
MarketRobo Advisors AUM USGlobal Fintech
MarketUnited States Fintech Market Forecast
Equity Crowd FundingPulse of FintechFintech
Companies United StatesFintech Companies Growth
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• Challenges Fintech MarketFinancial Services
  FinTech IndustryTop Financial Technology
  MarketMobile Payments Market Money Transfers
  Market United StatesDigital Commerce
  MarketMarketplace Lending Industry
• Companies Cited in the Report
• List of Major Companies Companies Covered
  in the Report
• Android Pay
• Angel List
• Apple Pay
• Authorize.Net
• Betterment
• CAN Capital
• Charles Schwab
• Wealthfront

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• Chase QuickPay
• Crowdfunder
• Dwolla
• EquityNet
• Fundable
  Major Players
• Funding Circle
• Kabbage
• Lending Club
• OnDeck Capital
• PayPal
• Personal Capital
• Prosper
• Samsung Pay
• SoFi
• Square
• Stripe
• Vanguard
• Venmo

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For more information about the publication, refer
to the below link https//www.kenresearch.com/ba
nking-financial-services-and-insurance/financial-s
ervices/us-fintech-market-report/54351-93.html Re
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Contact UsKen ResearchAnkur Gupta, Head
Marketing CommunicationsAnkur_at_kenresearch.com
91-9015378249