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The fintech software market size is projected to increase by USD 22.66 billion with growth at a CAGR of 7.81% between between 2023 and 2028. The Fintech software market is experiencing significant growth, driven by various factors. Businesses are increasingly focusing on enhancing efficiency through the implementation of advanced technologies. Digitalization is revolutionizing financial services, leading to the emergence of innovative digital banking solutions. Furthermore, the integration of big data and artificial intelligence (AI) in Fintech is enabling more accurate predictions, personalized services, and improved risk management. These market trends are shaping the future of the market, offering immense opportunities for growth and innovation.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Accenture Plc, Bankable Domain Inc., Blockstream Corp. Inc., Cisco Systems Inc., DXC Technology Co., Fingent, Hewlett Packard Enterprise Co., Infosys Ltd., Intel Corp., Intellectsoft LLC, International Business Machines Corp., iTechArt Group Inc., LeewayHertz, Microsoft Corp., Oracle Corp., Praxent LLC, Red Hat Inc., SAP SE, SAS Institute Inc., and Serokell OU
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The market is experiencing significant growth in the financial sector, driven by the integration of modern technologies such as Artificial Intelligence (AI), Application Programming Interfaces (APIs), Blockchain, and Cloud-based Solutions. Financial Institutions, including Insurance Companies and Banks, are adopting these technologies to enhance their service proposition in the areas of Savings and Investments and Other Service Propositions. E-commerce Sites and Mobile Banking Apps are also leveraging Fintech software to provide seamless digital banking experiences to consumers. National Regulators are setting regulatory standards to ensure the secure implementation of Fintech software in the financial sector. Fintech Software, including Financial Technology and Fintech Computer Programs, is transforming the financial sector by providing efficient and innovative solutions. The World Bank and various other organizations are investing in Fintech to promote financial inclusion and improve financial services. Overall, the market is a dynamic and evolving space that is shaping the future of the financial sector. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The integration of big data and AI in fintech is notably driving market growth. Companies in the fintech sector are looking for ways to store, process, and search massive amounts of data. These businesses could identify opportunities for new products and services, segment the customer base, and optimize pricing structures with the aid of such analysis. Big data use can enhance investment choices and assist businesses in developing comprehensive credit scoring systems. Big data analytics can also assist businesses in identifying anomalous transactions that might indicate fraud, cybersecurity breaches, or even validate judgments about creditworthiness.
Fintech companies can benefit from the field of AI as well. Products in this field automate decision-making processes using data and analytics. Robotic process automation in fintech firms will probably result in lower transaction costs and more transparent profitability analysis of daily financial service portfolios. Therefore, these benefits are expected to drive the growth of the global market during the forecast period.
The adoption of cloud-based services is an emerging trend in the market. As they are easily accessible and affordable, cloud services are widely used by many financial organizations. The biggest banks and insurance firms have incorporated cloud-based software into their operations. The Microsoft and Amazon Web Services platforms, which register, build, deploy, and manage intelligent services, are used to deploy cloud services in banking institutions. Additionally, these services give users the option to incorporate Microsoft Cognitive Services to improve the user experience.
Fintech as a service delivered through the cloud is comparable to on-premises services and shares many of their traits, despite being implemented using a cloud computing framework. Chatbot deployment is primarily done on the cloud ecosystem by platform providers like Facebook and Google. Thus, the growing adoption of cloud-based services is a major trend in the global market, which will boost the growth of the market during the forecast period.
Data privacy and security concerns are major challenges impeding market growth. Significant obstacles to the adoption of fintech software in organizations include data privacy and security risks. Data from connected servers can be tracked, retrieved, and analyzed using big data and AI. These technologies can also modify servers' functionality by changing their algorithms through the use of artificial intelligence. Additionally, the open-source code that makes up the IT infrastructure is a complex patchwork that may contain vulnerabilities.
Because they are multitenant, clouds are more susceptible to source code errors that can impact a variety of cloud-based applications. Due to the open architecture and shared resources that cloud-based infrastructure is built upon, hackers can easily gain access to cloud-based data storage systems. Cyber hackers may be able to scan for, find, and use system flaws and vulnerabilities thanks to how simple it is to purchase and use cloud services. Therefore, numerous organizations are skeptical about deploying fintech software in their operations, which is likely to limit the growth of the market during the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. Due to features like rapid deployment, enhanced flexibility and scalability, real-time data visibility, and the ability for customization, the demand for cloud-based deployment models is anticipated to increase. Integration of automation with other software solutions is made possible through the use of cloud-based deployment. Service providers with flexible payment options, such as monthly subscriptions and pay-as-you-go models, provide these features. Therefore, when compared to on-premises deployment, the use of cloud-based life sciences software solutions is more economical and cost-effective.
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The cloud-based segment was valued at USD 24.14 billion in 2018. As they offer scalability, lower IT costs, and other advantages, cloud-based fintech software solutions are being adopted by a number of financial institutions. During the forecast period, new developments in data security are anticipated to accelerate the adoption of cloud-based solutions. Significant data volumes are produced by large financial institutions. They can now store such important data on-premises due to advancements in cloud technologies, and they can use a public cloud server to store less frequently used data to ensure maximum cost and efficiency. Furthermore, scalability is a feature of cloud-based solutions that enable businesses to increase or decrease resources in accordance with their needs. Thus, owing to such factors, the segment is expected to grow during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period.
Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
One of the main nations driving the expansion of the region's market under consideration is the US, followed by Canada. Due to the US's early adoption of cutting-edge technologies by banking and financial institutions, the US dominates the market and contributes significantly to global revenue. The market's appeal is further demonstrated by Silicon Valley's constantly growing startup scene. Moreover, the growing awareness among customers in the region about the key benefits that they can avail themselves of with fintech software, such as convenience, security, simplicity, transparency, and personalization, in their financial operations is also driving the growth of the market. Owing to these factors, the regional market in focus is expected to grow during the forecast period.
Companies in North America need a lot of computing power and data center infrastructure to adopt AI technologies. Because of this, data center providers are setting up data centers close to the edge (in areas near end users, like BFSI). As a result, establishing such cutting-edge data center infrastructure to support AI and related services aids businesses in overcoming AI adoption barriers. This promotes the use of fintech software across end-user industries in North America, including BFSI. Furthermore, leading technology firms like Microsoft and Google are also putting more money into the research and development of fintech software solutions and supporting startups in the financial sector that are AI-focused, which is propelling the growth of the regional market. Hence, all of the aforementioned factors will drive regional market growth during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Fingent - The company offers various products including InfinCE, Reachout Suite, Upskill, Ed360, and Aware. The key offerings of the company include fintech software solutions such as mobile payment processing, blockchain and identity management, and capital management solutions.
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is experiencing significant growth due to the increasing adoption of digital technologies in the financial sector. This market encompasses software solutions designed to facilitate and automate various financial processes, including payment processing, lending, and wealth management. The integration of artificial intelligence and machine learning algorithms in Fintech software is revolutionizing the industry, enabling more accurate predictions and personalized services. Moreover, the proliferation of smartphones and the rise of mobile banking have created new opportunities for Fintech companies.
The use of biometric authentication and blockchain technology is also gaining traction, enhancing security and transparency in financial transactions. The competition in the Fintech software market is intense, with numerous players offering innovative solutions to cater to diverse customer needs. Companies are investing heavily in research and development to stay ahead of the curve and meet evolving market demands. The implementation of regulations such as GDPR and PSD2 is driving the adoption of advanced security measures and compliance tools in Fintech software. Additionally, the integration of APIs and open banking platforms is enabling collaboration and innovation among financial institutions and Fintech companies. In conclusion, the Fintech software market is poised for continued growth, driven by technological advancements, changing customer preferences, and regulatory requirements. The market is expected to witness significant innovation and disruption in the coming years, transforming the way financial services are delivered and consumed.
Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.81% |
Market growth 2024-2028 |
USD 22.66 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.24 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Bankable Domain Inc., Blockstream Corp. Inc., Cisco Systems Inc., DXC Technology Co., Fingent, Hewlett Packard Enterprise Co., Infosys Ltd., Intel Corp., Intellectsoft LLC, International Business Machines Corp., iTechArt Group Inc., LeewayHertz, Microsoft Corp., Oracle Corp., Praxent LLC, Red Hat Inc., SAP SE, SAS Institute Inc., and Serokell OU |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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