Global FinTech Industry Market, By Offering (Buy Now Pay Later Platform, Supply Chain & Invoice Financing, Neo & Challenger Banking Services, Spend & Expense Management, and Corporate Cards), By Enterprise Size (SMEs and Large Enterprises), By Industry (BFSI, Retail & e-commerce, Healthcare & Life Science, IT & Telecom, and Others), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) - Global Forecast to 2027, is expected to be valued at US$ 382.38 million by 2027, exhibiting a CAGR of 7.05% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Fintech industry consists of technology-based financial services and related goods. Companies in the FinTech industry are engaged in providing end-to-end process financial services and solutions to automate financial transactions over the internet. Services provided by the Fintech companies range from traditional banking services such as payment services and fund transfers to technologically advanced banks such as Neo Banks and financial platforms such as Buy Now Pay Later Platform. Moreover, in recent years many variations have occurred in Fintech services, in which tailored technologies are offered for specific functions or sectors such as Insurtech, Regtech, etc.
In addition, the Fintech industry is increasing in emerging economies across the globe such as India and China. For instance, according to Invest India, in the year 2019, the overall transaction value in the Indian FinTech market was US$ 65 bn, and it is expected to increase up to US$ 140 bn by 2023. The growth of the fintech industry in the region is majorly due to high-level banking services penetration due to central government initiatives such as Jan Dhan Yojana, high smartphone penetration, and growing disposable income. The key segments included in the FinTech industry are digital payment, digital lending, banking technology, insurance technology, and wealth technology.
The global FinTech industry analysis was accounted for US$ 208.01 Mn in terms of value in 2019 and is expected to grow at a CAGR of 7.05% for the period 2020-2027.
Increasing number of investments received by buy now pay later platform providers for geographical expansion, and service offerings, is expected to boost the adoption of buy now pay later platform over the forecast period. For instance, according to Reserve Bank of India, during the COVID-19 pandemic, the investments in Fintech companies in India increased by over 60%, and this fund raising was worth over US$ 647.5 million.
Moreover, the players in the buy now pay later platform market are focusing on launch of advanced solutions and services, which is expected to attract new customers. For instance, in March 2019, Airbase Inc, a spend management platform provider, has launched modern spend management platform. This spend management platform offers control and visibility over the spend lifecycles such as approval of spending, making payments, and recording of every transactions in accounting software. Moreover, in November 2019, Open Financial Technologies, a neo-banking platform provider, has launched Founder One Card for SMEs & Startups. This card can help organizations to manage their spending from the single platform.
FinTech industry analysis
The spending patterns of people across the globe have also changed owing to the COVID-19 pandemic. According to CMI’s study in 2020, consumers have increased their spending on healthcare products, groceries, and home entertainment systems and reduced their spending on vehicle purchase, shared mobility, fuel, and tours and tourism. Moreover, many small and medium organization are focusing to manage their expenses.
To tackle this situation, many players in the Fintech industry are engaged in launching new solutions and services. For instance, in August 2020, Ramp Business Corporation launched expenses management tools. This software can aid an organization to cut down the overall expenses.
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Major companies operating in the global fintech industry are: Corporate Card for Spend Management Platform: Air Canada, AirPlus International Ltd, American Express Company, Bank of America Corporation, Citigroup Inc, Diners Club International Ltd, East West Bank (East West Bancorp, Inc.), JP Morgan Chase & Co. Inc, Mastercard Incorporated, NIUM Pte. Ltd, The UPS Store, Inc, Tradeshift.
Spend Management/Spend Analytics Solutions Providers: Advanced, Airbase Inc., Ariba, Inc. (SAP SE), Brex Inc, Coupa Software Inc, GEP, Open Financial Technologies Pvt Ltd, Procurify, Ramp Business Corporation, Sage Intacct, Inc. (The Sage Group PLC), Sievo, SutiSoft, Inc, TOUCHSTONE GROUP PLC, VA Tech Ventures Pvt Limited (Happay).
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