Global Fintech 2023: Reimagining the Future of Finance
In just two short decades, fintech—an amalgam of “finance” and “technology”—has exploded onto the scene, revolutionizing the financial services industry as we know it. This dynamic sector has been fueled by the various innovations that have shaped a generation, each one seemingly more game-changing than the last.
The rapid rise of the sector notwithstanding, fintechs on average lost more than half their market value in 2022—a plunge we believe is a short-term correction in an otherwise long-term positive trajectory, as the industry’s fundamental growth drivers haven’t changed. The overall financial services industry is enormous and very profitable yet struggles with innovation and customer experience. More than half the world’s population remains unbanked or underbanked, and technology continues to unlock new use cases in leaps and bounds.
The fintech sector, currently holding a mere 2% share of global financial services revenue, is estimated to reach $1.5 trillion in annual revenue by 2030, constituting almost 25% of all banking valuations worldwide. With 42% of all incremental revenues, the largest market is projected to be Asia-Pacific (APAC), especially emerging Asia (China, India, and Southeast Asia), where fintechs will help expand financial inclusion. North America, the largest fintech market, will follow APAC and remain a critical hub for innovation. Europe and Latin America will continue to experience strong growth—propelled by supportive regulators—and Africa can leapfrog its way to a new financial ecosystem, unencumbered by legacy infrastructure.
