Fintech Market Growth Report | Global Insights 2024-2029

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Fintech Market
The fintech market is expected to grow at a CAGR
of 25.18 per cent during the forecast period to
be valued at USD 644.6 billion by 2029 from 209.7
billion in 2024. Market Drivers The fintech
market growth is mainly driven by its expanding
applications by financial institutions. This is
because of the technological developments that
the financial sector has experienced a
considerable transformation and surge. Moreover,
the market is expected to propel further with the
emergence of technologies like generative AI and
the remaining billions of underbanked and
unbanked people globally. Market Restraints Data
security is the primary restraint for the growth
of the fintech market. The average cost worldwide
for each data breach i.e. 3205 incidences was
over 4.4 million in 2023 and 4.8 million in 2024.
This resulted in a much larger concern about
cybersecurity in banking. Besides this,
regulatory compliance is another key challenge
for market growth as it is heavily regulated by
the government. Segment Analysis By Technology .
API Artificial Intelligence
Blockchain Distributed Computing API is the
biggest segment of the fintech market. Enhanced
functionality and improved user experience are
the factors fuelling the segment's market growth.
API usage provides varied product portfolios and
strengthens the fintech ecosystem of
organizations. Also, innovative and engaging
methods to access financial information or
utilise financial services are influencing the
segment's rise. By Service Payment Fund
Transfer Personal Finance Loans
Insurance Wealth Management
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The payment segment is the leading category of
the fintech market. The escalating frequency of
digital payment transactions and the higher
acceptance of online payment ways are driving the
segment's market share. Whereas, the fund
transfer segment follows closely with heightening
remittances and international money transfers. By
Application Banking Insurance
Securities Others Banking is the most
prevailing segment in the fintech market. Banking
advancements like peer-to-peer lending platforms,
mobile payment apps and digital wallets are
redefining the operations of traditional banking
systems. Moreover, accessibility,
cost-effectiveness and convenience are elevating
the segment's market size. By Deployment Mode
Cloud On-premises Cloud is gaining more
traction and is projected to propel further
during the estimation period. This is because of
the potential to adjust to fluctuating workloads
and the costs saving benefits are adding to the
segment's dominance. Regional analysis Asia
Pacific is the fastest-growing fintech market
with over 880 deals of value 10.8 billion dollars
in 2023. This rapid expansion is spearheaded by
India, having more than 9000 fintech companies
and an unprecedented rise in the Unified Payments
Interface (UPI). North America will continue an
essential fintech market and is predicted to
experience four times growth over the forecast
period. Recent happenings In August 2024,
Mastercard globally introduced its new Payment
Passkey Service to enhance online shopping's
security and operability. It will first begin as
a pilot in India with a few of the biggest
payment aggregators, prominent banks and online
merchants. In July 2024, Toyota Financial
Services Italy establishes a corporate
collaboration with Fintech District. This is for
Techfin and the fintech ecosystem in Italy of the
international reference community. Related Reports
AI in Fintech Market
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FinTech Blockchain Market
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