Fintech to hit $1.5trn by 2030
Asia-Pacific will outpace the US and Europe to eventually become the world’s largest fintech market.
Revenues from fintech firms will soar 600 per cent from $245bn to $1.5trn by 2030.
According to a new report from Boston Consulting Group (BCG) and QED Investors, fintechs have today just a 2 per cent share of the $12.5tron revenue recorded by global financial services. This, however, is set to leap to 7 per cent in seven years.
Neobanks, such as Nubank,Revolut,Monzo and others, will constitute almost 25 per cent of all aggregate banking valuations worldwide by 2030 meanwhile In 2022, the report finds, fintechs on average lost more than half of their market value as higher trending interest rates knocked investor confidence.
“The fintech journey is still in its early stages and will continue to revolutionize the financial services industry as we know it,” says Deepak Goyal, BCG managing director and senior partner and co-author of the report.
“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, “ Goyal added.
"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, “ said Nigel Morris, QED Investors managing partner and coauthor of the report.