Chennai: The global fintech market will be driven by banks and firms which are investing heavily in technology-based solutions, said a report.
According to ResearchandMarkets, the fintech market will be pinned at approximately $305.7 billion by 2023, at a CAGR of 22.17 per cent between 2018-2023.
The report said high usage of mobile devices and technology-based solutions is pushing the demand for financial and banking solutions which can be accessed through personal devices.
The payment/billing services segment is expected to drive major growth in the global market, leading to a revenue generation of $207.11 bn by 2023, the report said. Other services provided in the fintech sector include Regtech, insurtech, money transfer/remittance, mortgage/real estate.
This growth can be attributed to contactless cards and the emergence of retail-focused FinTech companies looking to expand the use of this functionality by taking it to every corner of commerce, said the report.
Major technologies involved in the sector are artificial intelligence (AI), Blockchain, cryptography, biometrics and identity management, cyber-security, and robotic process automation (RPA). Significant growth will be witnessed in areas of AI and Blockchain, attracting major investments during the forecast period, 2018-2023, the report added.
North America is the leading contributor to the global fintech market and the market is expected to reach $80.85 Bn by 2023. However, the pace of growth in the Asia-Pacific (APAC) region is anticipated to be the highest, at a CAGR of 43.34 per cent during 2018-2023, it added.
India, China, Japan, South Korea and Australia are the key contributing countries, while Latin America, is slowly emerging as a prominent region, the report noted.