Fintech market – Five Forces
The global cloud data warehouse market is fragmented, and the five forces analysis covers–
- Bargaining Power of Buyers
- The threat of New Entrants
- Threat of Rivalry
- Bargaining Power of Suppliers
- Threat of Substitutes
Fintech market – Customer Landscape
The report includes the market’s adoption lifecycle, 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 growth strategies.
Fintech market – Segmentation Assessment
Technavio has segmented the market based on application (on-premise and cloud), end-user (banking, insurance, securities, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
- The market share growth by the on-premise segment will be significant during the forecast period. Large financial institutions that deal with multiple transactional information daily prefer on-premise fintech software solutions. On-premise solutions provide the optimum level of data security with physical access controls and security protocols. These solutions also provide a secure environment during regular software upgrades.
By geography, the global fintech market is segmented into APAC, North America, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global fintech market.
- APAC will account for 39% of the growth of the global market during the forecast period. Factors such as high growth potential, rapid adoption of technologies such as blockchain across industries, and an influx of SMEs are driving the growth of the regional market.
Fintech market – Market Dynamics
Key factor driving market growth
- The market is driven by the influence of digitalization.
- Businesses across the world are adopting digital solutions to improve their business processes.
- The use of technology is helping companies to make effective decisions in real-time.
- The rise in digitalization has led to an increase in the adoption of connected devices and advanced and diverse machines across business processes.
- This is leading to the generation of huge volumes of data, primarily due to process automation and the adoption of digital media by customers.
- Fintech software allows organizations to process this data and use it in business-related decision-making processes to understand consumer behavior and market patterns.
- Thus, with growing digitalization, the adoption of fintech software will increase significantly during the forecast period.
Leading trends influencing the market
- The growing popularity of blockchain is one of the major trends in the market.
- Blockchain technology is gaining popularity in the BFSI sector. Banks are adopting this technology for different tasks such as authentication processes and verifying documents.
- The technology ensures complete business-to-business transfers at significantly low costs and with minimal decentralization.
- The reliance on blockchain technology by banks is expected to increase considerably during the forecast period due to the potential innumerable benefits of the technology.
- This trend is expected to foster the growth of the global fintech software market during the forecast period.
Major challenges hindering market growth
- Privacy and security concerns associated with fintech solutions are challenging the growth of the market.
- Fintech solutions enable payment service providers to collect data on customer profiling, behavior, and data mining.
- The indiscriminate use of these data can infringe on customer privacy. Also, the use of location-based services increases the risk of personal information being compromised.
- Moreover, as smartphones are used in monetary transactions in real-time, data theft can lead to financial losses for consumers and may cause a loss of reputation for service providers