Fintech revenues to reach $1.5trn by 2030
Fintech revenues will grow by 600 per cent to reach $1.5trn (£1.19trn) by 2030, a new report has found.
According to data from Boston Consulting Group (BCG) and QED Investors, fintech revenues are currently worth approximately $245bn, representing a two per cent share of the total $12.5trn revenue for all global financial services firms.
However, within the next seven years, fintech is set to carve out a seven per cent share of financial service revenues, due largely to the impact of neobanks and payment services.
“The fintech journey is still in its early stages and will continue to revolutionize the financial services industry as we know it,” said Deepak Goyal, managing director of BCG and co-author of the report.
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“Customer experience remains poor. More than half the world’s population remains unbanked or underbanked, and technology continues to unlock new use cases in leaps and bounds.”
The study found that 2022 was a challenging year for global fintech companies, which lost more than half of their market value on average. However, this is believed to have been a short term correction in an otherwise long-term positive trajectory.
Together, the UK and EU represent the third largest financial institution market, with fintech growth led by the payments sector.
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Meanwhile, the US fintech sector is dominated by neobanks such as Monzo and Revolut.
The report found that Asia-Pacific is set to outpace the US to become the world’s top fintech market by 2030, with a projected compound annual growth rate (CAGR) of 27 per cent. This will be largely driven by growth in China, India and Indonesia.
“Fintech sits within financial services which is a massive, profitable industry, and the opportunity ahead of us to democratize access to these services on a global scale is tremendous, “ added Nigel Morris, managing partner of QED Investors and co-author of the report.
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