Authored By: Sarah
11 Jul 2024

 Fintech Market Size to grow by USD 277.22 billion between 2023-2027

According to a research report “ Fintech Market” by Application (On-premise, Cloud) End-user (Banking, Insurance, Securities, Others) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 277.22 billion, at a CAGR of  20.5% during the forecast period. In today's IoT-driven business landscape, the adoption of smart-connected devices is experiencing exponential growth. This trend poses new challenges for financial institutions, particularly in ensuring data security and managing an increasing number of connected devices. To address these challenges, M2M communication technology is poised for significant growth during the forecast period. By facilitating efficient management, monitoring, and maintenance of connected devices, M2M communication enables financial service providers to optimize their operations and make real-time, data-driven decisions. Moreover, the digitization of business processes has led to substantial improvements in enterprise efficiency and agility, further fueling the demand for FinTech software solutions. The burgeoning number of connected devices worldwide serves as a major catalyst for the growth of the FinTech market.

Browse market data tables, figures, and in-depth TOC on “Fintech Market” by Application (On-premise, Cloud) End-user (Banking, Insurance, Securities, Others) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample


By Application, the On-premise segment is projected to dominate the market size in 2024

In the dynamic fintech market landscape of 2022, the banking sector emerged as the largest end-user segment, fueled by the surge in online and mobile banking adoption. With a vast user base, this sector caters to various financial services such as online payments, e-wallets, P2P lending, PCI, third-party banking, and mobile transactions. Fintech software solutions play a pivotal role in banking operations, ensuring user authentication across diverse systems and processes, including loan processing, claim management, customer data management, and financial transactions. These solutions equip financial institutions with the necessary tools to address sectoral challenges, ensuring compliance, enhancing security, and promoting transparency.

By End-user, Banking  segment is expected to hold the largest market size for the year 2024

In the dynamic fintech market landscape of 2022, the on-premise segment continues to dominate, accounting for the largest market share. This is primarily due to the real-time monitoring capabilities and enhanced security features offered by on-premise deployments. In contrast, cloud-based models store data on multiple servers, increasing potential vulnerabilities. On-premise solutions provide greater control and security through dedicated servers and restricted access to data via dedicated client servers. However, it's crucial to note that both deployment models have their unique advantages and challenges, necessitating a thorough evaluation based on specific business requirements.

APAC is forecasted to hold the largest market size by region in 2024

The Asia Pacific (APAC) region is experiencing rapid growth in the fintech sector, driven by its substantial business potential and the swift adoption of advanced technologies like blockchain. Notably, economies such as China and India, which are witnessing an influx of Small and Medium Enterprises (SMEs), are leading the charge in the adoption of distributed ledger technologies (DLTs). This trend is creating a fertile ground for financial market startups to fundamentally transform their business and operational models. Consequently, the increasing adoption of DLTs, coupled with the expanding penetration of the Internet and smartphones, is enabling vendors in the Banking, Financial Services, and Insurance (BFSI) industry to launch DLT platforms. This, in turn, is fueling the expansion of the fintech market in APAC throughout the forecast period.

The Fintech Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Acorns Advisers LLC
  • Adyen NV
  • Affirm Inc.
  • AlphaSense Inc
  • Avant LLC
  • Barker Brooks Communications Ltd.
  • Camden Town Technologies Pvt Ltd.
  • Earnest Fintech
  • FinTech Sandbox Inc.
  • International Business Machines Corp.
  • Microsoft Corp.
  • PayPal Holdings Inc.
  • SoFi Technologies Inc.
  • Stripe Inc.
  • Upstart Network Inc.
  • Fundrise LLC
  • Alphabet Inc.

For insights on company offerings- Request a sample report!

Research Analysis Overview

The Fintech Market has experienced remarkable growth in recent years, driven by advanced technologies such as blockchain, artificial intelligence (AI), and digital formats. However, this growth comes with challenges, particularly in the areas of data security and privacy. Unscrupulous actors continue to find new ways to infiltrate Fintech systems through malware injection, leading to data loss and potential financial damage. Fintech firms collect vast amounts of sensitive information, including financial records, personal information, and credit scores, making them prime targets for cyber-attacks. Sales and marketing efforts on social media and online buying habits further expand the attack surface. National regulators and financial bodies are collaborating to ensure transparency and convenient services while maintaining security and privacy. Advanced technologies like AI and data analytics are being employed to detect and prevent security breaches. Traditional financial methods are also integrating with Fintech to offer value-added services. Despite these challenges, the Fintech Market's growth shows no signs of slowing down. As more financial transactions move online, it's crucial for Fintech firms to prioritize data security and privacy to maintain customer trust and confidence.

Market Research Overview

The Fintech market is experiencing exponential growth, driven by advanced technologies such as mobile wallets, AI-powered chatbots, and blockchain technology. Mobile wallets offer convenient payment services, while fraud monitoring and compliance & regulatory support ensure security. KYC verification and GDPR compliance are crucial for data privacy and security concerns. Fraud detection is a major focus, with machine learning and AI used for real-time analysis. Fintech firms collaborate with financial institutions, banks, insurance companies, and regulatory bodies to provide value-added services. Blockchain technology offers transparency and security for payment & fund transfer, loans, and wealth management. However, the technological side also brings challenges, such as cloud computing abuse, account hacking, malware injection, and data loss. Fintech firms must prioritize data security and privacy, especially with the increasing use of digital formats for financial records and personal information. Regtech and Insurtech are key areas of investment, with MiFID II regulations and Dodd-Frank Act shaping the financial sector. Fintech investments are also driven by sales, marketing, and customer behavior analysis, including social media habits and online buying patterns. Despite these challenges, the Fintech market's growth continues, with collaborations between fintech firms and national regulators ensuring a level playing field. The future of fintech lies in advanced technologies, transparency, and convenient services.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

Read News Read Less
Interested in this report?
Get your sample now!