Fintech Market Projected to Expand to $882 Billion by 2030 - FINTECH MAGAZINE AFRICA (2024)

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Fintech Market Projected to Expand to $882 Billion by 2030 - FINTECH MAGAZINE AFRICA? ›

The fintech industry is expected to rapidly grow, reaching an estimated worth of $882 billion by 2030. With advancements in technologies like AI, Machine Learning, blockchain technology, and data analytics, more companies are enhancing their financial services.

FinTech revenues are set to grow sixfold from $245bn to $1.5trn by 2030, according to a report from Boston Consulting Group (BCG) and QED Investors. The report suggests that the FinTech sector, which currently holds a 2% share of the $12.5trn in global financial services revenue, is estimated to grow up to 7%.

Fintech Market Overview

The fintech market size is projected to grow from $ 222 billion in 2024 to $ 1,818 billion by 2035, representing a CAGR of 21.04%, during the forecast period 2024-2035.

Africa is the world's fastest-growing continent when it comes to fintech revenue, with a compound annual growth rate (CAGR) of 32%. This means that by 2030, the African fintech market will be worth around $65 billion (~R1. 2 trillion), according to a recent report by Boston Consulting Group (BCG) and QED Investors.

FinTech Market Analysis

The global fintech market was valued at USD 294.74 billion in 2023 and is projected to be worth USD 340.10 billion in 2024 and reach USD 1,152.06 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period (2024-2032).

The global fintech industry is booming, with customer demand driving growth. In developing nations, digital innovation by fintech companies has allowed entire economies to bypass the high-street bank system, and offer a multitude of options to people who would likely be excluded from traditional banking systems.

With the advent of game-changing technologies such as GenAI and with still billions of unbanked and underbanked individuals worldwide, fintech has vast potential. We continue to expect fintech to reach a market size of $1.5 trillion in revenue by 2030—growth of roughly five times from today.

6. Innovation in Payment Systems. Fintech has introduced new payment methods such as digital wallets, contactless payments, and cryptocurrencies. These innovations are making transactions faster, more secure, and more convenient, changing the way people and businesses handle money and perform financial transactions.

In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.

Fintech, a combination of the words “financial” and “technology,” refers to software that seeks to make financial services and processes easier, faster and more secure.

What is the future of African fintech? ›

McKinsey estimates that Africa's financial-services market could grow at about 10 percent annually, reaching about $230 billion in revenues by 2025 ($150 billion excluding South Africa, which is the largest and most mature market on the continent).

He notes that FinTech is generally popular in Africa due to the extension of basic financial services into many markets that banks have found unprofitable to enter, as well as the lack of any visible FinTech disasters up to now.

05, 2023 (GLOBE NEWSWIRE) -- The global FinTech market size was valued at USD 257.26 billion in 2022 and is expected to reach USD 882.30 billion by 2030, exhibiting a CAGR of 17.0% over the study period.

The fintech industry is expected to reach a market size of $305 billion by 2025, growing at a CAGR of 22.17% from 2020 to 2025. The fintech sector, which currently holds a 2% share of the $12.5 trillion in global financial services revenue, is estimated to grow up to 7%, reaching $1.5 trillion by 2030.

Most Popular Fintech Technology Trends to Expect in 2024

By 2024-2025 we can expect greater use of blockchain, AI and IoT in financial transactions. This encourages finance companies to make quick decisions, integrate the latest technologies into their services, and constantly improve their customer services.

Fintech stands out as an industry that will almost certainly be revolutionized by the emergence of biotechnology and neurotechnology over the next decade. This could include financial tools and applications executed via brain-computer interfaces (BCIs), allowing us to transfer money with a thought and a handshake.