Indian Economy News

Fintech revenues to grow sixfold by 2030: BCG

According to a Boston Consulting Group (BCG) and QED Investors analysis, financial technology companies are predicted to increase 6 times to US$ 1.5 trillion by 2030. At present, North America and the Asia-Pacific region account for the majority of the US$ 12.5 trillion financial services market.

The Asia-Pacific region is predicted to overtake the United States as the world's largest financial technology market by 2030. The region is predicted to grow at a compound annual growth rate of 27%, supported by fast-growing fintechs that will improve financial inclusion.

According to the survey, greater development is projected in developing Asia-Pacific countries such as China, India, and Indonesia because they have the most fintechs, substantial under-banked populations, a large number of SMEs, and a growing tech-savvy young and middle class.

The expansion of financial technology firms in India will be fuelled by platforms for lending, neobanking, and wealth management. With the emergence of local champions such as Paytm and Razorpay, India is undergoing significant fintech activity. According to the research, there is a clear opportunity for fintech companies to give India's 190 million unbanked people access to financial services. It is expected that significant fintech revenue growth in India to be driven by expanding GDP, the rise of the educated middle class, the coming of age of younger demographics, and increasing fintech penetration.

According to the research, North America will continue to be a significant centre for fintech and innovation while Latin America will experience an accelerated uptake of financial technology.

The United States will account for 32% of worldwide fintech revenue growth through 2030, owing to an increase in B2B2X (B2B to any end-user) and B2b businesses, as well as the development of monoline fintechs into additional products and services. Europe's fintech market is likewise anticipated to expand rapidly.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.