Asia-Pacific will grow faster than the US and Europe to become the biggest fintech market in the world.
By 2030, fintech companies’ earnings will grow by 600%, from $245 billion to $1.5 trillion.
A new study from Boston Consulting Group (BCG) and QED Investors says that fintechs only make up 2% of global financial services’ $12.5 trillion in revenue. In seven years, though, this is expected to jump to 7%.
Neobanks like Nubank, Revolut, Monzo, and others will account for almost 25% of the total value of all banks in the world by 2030.
The study finds that, on average, fintechs lost more than half of their market value in 2022 because investors lost faith in them because interest rates were going up.
“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.
