What is pushing forward the global fintech market?

Fintech is an emerging trend in financial operations and is driven by the adoption of technology in financial services such as banking, money transfers, digital payments, financial software and automation and alternative lending and funding platforms.

According to research by a leading market research firm, the global fintech market is expected to expand at a CAGR of 22.17% and be worth approximately USD 305.7 Bn by 2023. The various services provided by the fintech sector are payment/billing, capital market, regtech, money transfer/remittance, mortgage/real estate, lending, wealth management and capital markets.

Major drivers behind the growth of the global fintech market:

1.Digitalization of financial service: customer interaction and back-end operations have been transformed with the digitalization of financial services. With online financial services and digitalization, customers regularly access automated versions of financial related activities, which is far more convenient and seamless than physically visiting a bank. However, two major challenges are presented by digitalization. Firstly, banks have to spend billions of dollars annually to develop apps and websites alongside automating services and back-end operations. Second is the cutthroat competition present within the industry itself .consumers can choose from hundreds of companies online for the best pricing and services.

2. Moving beyond traditional financial services: In order to enhance their core offerings, many fintech firms are experimenting with new technologies and services, such as block chain and crypto-assets. Many firms view crypto/block chain as a high growth potential technology and are leveraging their expertise in payments, programming and market structure to help move forward in this field. Some fintech firms are even offering marketing, human resources and operations software. As they possess a large consumer base and understand small business needs, they are in a position to offer products that help manage a business.

The fintech industry is in a state of transformation as it is moving towards a more scalable and digital structure. It is a good position to experience long- term growth.