LONDON--(BUSINESS WIRE)--According to the latest research study released by Technavio, the global FinTech investment market is expected to grow at a CAGR of over 53% until 2020.
This research report titled ‘Global FinTech Investment Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all leading regions.
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“FinTech companies seek new means to store, analyze, and search vast amounts of data. Such analysis is anticipated to help them segment customer populations, identify opportunities for new products and services, and optimize pricing mechanisms. A key example is this is seen with the pooling of social network data with fund management and investments in relation to company analysis and management. The use of big data and new data can improve investment decisions, and also help arrive at a comprehensive credit scoring mechanisms,” said Soumya Mutsuddi, one of Technavio’s lead research analysts for gaming.
Market share of FinTech for technology 2015
|
• P2P lending |
26.80 | |
|
• Online acquiring and mobile wallets |
25% | |
|
• Personal finance management/ private financial planning |
14.11% | |
|
• MSME services |
11.52% | |
|
• MPOS |
7.23% | |
|
• Mobile first banking |
5.99% | |
|
• Crowdfunding |
3.60% | |
|
• Others |
1.06% | |
|
Source: Technavio research |
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P2P lending: largest segment of the global FinTech investment market
The investments made by FinTech start-ups for P2P lending was valued at close to USD 6.37 billion in 2015. P2P lending is among the most used models by borrowers, and it includes entities like borrowers, P2P lending platforms, and investors in the market, and offers clear visibility in terms of the level of risk attached to the investments.
A successful P2P lender or marketplace lender will bring greater innovation into the FinTech investment market during the forecast period by leveraging big data analytics. Harnessing big data analytics will likely play a key role in improving analysis and management of loans over the next four years.
Online acquiring and mobile wallets: second largest segment
The investments made by FinTech start-ups for online acquiring and mobile wallet was valued at USD 5.95 billion in 2015. Internet acquiring is implemented by payment-processing clearinghouse, and is used to process cash transactions online. During an Internet acquisition, the cardholder does not need to sign on any document to complete the transaction. The money is reimbursed within 180 days in case payment is canceled by the cardholder.
Participants in online acquiring are as follows:
- Merchant
- Buyer (holder of card)
- Issuing bank (card-issuing bank)
- Acquiring bank (bank servicing payments)
- Payment system (Europay, MasterCard, Visa)
Personal finance management or private financial planning
The investments made by FinTech start-ups for personal finance management or private financial planning was valued at close to USD 3.36 billion in 2015. Traditional financial institutions like banks are collaborating with the FinTech companies, and this trend is expected to aid FinTech companies to promote their solutions through alternative routes, such as banks. For instance, MarketInvoice, which is an online invoice financing platform, has partnered with the advisory services domain of KPMG, so that its small business clients can have direct access to the company platform for easy access to working capital.
Browse related reports:
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About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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