Summary
- • The global financial services sector is forecasted to grow at an annual rate of 5.6% from 2020 to 2027.
- • The global fintech market size is expected to reach $305.7 billion by 2026.
- • Around 67% of financial services executives are planning to invest in cybersecurity technologies in the coming year.
- • The digital banking user penetration is projected to reach 72.6% by 2026.
- • The global asset management industry is valued at $85 trillion.
- • Around 54% of consumers prefer using online banking as their primary method of banking.
- • The global blockchain technology market size is expected to reach $72 billion by 2026.
- • The global insurtech market is projected to reach $10.14 billion by 2025.
- • Traditional banks will lose up to 15% of their market share to fintech companies by 2025.
- • The global payments industry is estimated to be worth $2.9 trillion.
- • The robo-advisory market is expected to grow to $7.3 trillion by 2025.
- • 56% of financial services companies have adopted artificial intelligence in some form.
- • The global peer-to-peer lending market is forecasted to reach $589.5 billion by 2025.
- • Compliance costs for financial institutions average around $60 million annually.
- • The global credit card market is valued at $1.3 trillion.
Hold onto your wallets and strap in for a wild ride through the ever-evolving world of finance! With the global financial services sector revving its engines for a 5.6% annual growth spurt and the fintech market gearing up to hit a whopping $305.7 billion by 2026, its clear that the money game is changing faster than you can say blockchain. As 67% of financial services execs plot their cybersecurity moves and digital banking prepares to capture 72.6% of users, one things for sure: from robo-advisors to insurtech innovations, the financial landscape is about to undergo a major cash injection of tech-savvy disruption. So, buckle up, because its about to get fintech-tional!
Financial services industry trends
- Around 67% of financial services executives are planning to invest in cybersecurity technologies in the coming year.
- Traditional banks will lose up to 15% of their market share to fintech companies by 2025.
- Compliance costs for financial institutions average around $60 million annually.
- 75% of consumers believe that banks offer similar products and services.
- Global venture capital investment in fintech companies reached $49.5 billion in 2020.
- 68% of financial services executives believe that partnerships with fintech firms will drive innovation in the industry.
- 80% of financial institutions are aiming to increase their investments in digital transformation over the next three years.
Interpretation
In the ever-evolving landscape of the financial industry, the numbers tell a compelling story of adaptation and transformation. As financial services executives gear up to fortify their defenses with cybersecurity investments and forge innovative partnerships with fintech firms, traditional banks face the looming threat of losing market share to their more agile counterparts. Amidst the hefty compliance costs and consumer perception of homogeneity in offerings, the industry is witnessing a surge in venture capital injections into fintech companies, highlighting the appetite for disruption and innovation. The race towards digital transformation is on, with financial institutions setting their sights on a future that promises both challenges and opportunities for those willing to embrace change and push the boundaries of tradition.
Global market size forecasts
- The global financial services sector is forecasted to grow at an annual rate of 5.6% from 2020 to 2027.
- The global fintech market size is expected to reach $305.7 billion by 2026.
- The global asset management industry is valued at $85 trillion.
- The global blockchain technology market size is expected to reach $72 billion by 2026.
- The global insurtech market is projected to reach $10.14 billion by 2025.
- The global payments industry is estimated to be worth $2.9 trillion.
- The robo-advisory market is expected to grow to $7.3 trillion by 2025.
- The global peer-to-peer lending market is forecasted to reach $589.5 billion by 2025.
- The global credit card market is valued at $1.3 trillion.
- The global investment banking industry generates revenue of over $200 billion annually.
- The global microfinance market is expected to grow to $313.22 billion by 2025.
- The global derivative market has a notional value of over $600 trillion.
- The global wealth management industry is valued at $74 trillion.
- The global mobile payment transaction value is projected to reach $12.96 trillion by 2026.
- The global consumer lending market size is estimated to be $8.4 trillion.
- The global cryptocurrency market is expected to reach $4.94 billion by 2030.
- The global remittance market size is forecasted to reach $930 billion by 2026.
- The global trade finance market size is expected to exceed $56 billion by 2027.
- The global Islamic banking industry assets are valued at $2.88 trillion.
- The global crowdfunding market size is expected to reach $28.8 billion by 2025.
- The global asset recovery market is expected to grow by a CAGR of 8.2% from 2021 to 2028.
- The global insurance technology (insurtech) market is projected to reach $16.22 billion by 2025.
- The global artificial intelligence market in financial services is expected to reach $26.67 billion by 2028.
- The global mobile banking market size is anticipated to reach $1.82 trillion by 2026.
Interpretation
The financial industry's growth projections seem to be hitting the trillion-dollar mark faster than a high-speed stock market trade. With more numbers being thrown around than a Wall Street trader on a caffeine high, it's clear that money talks in this global game of financial services. From the booming fintech market to the staggering figures in asset management and the mind-boggling notional value of derivatives, it's a numerical jungle out there. As we chase after the ever-growing billions and trillions, one thing's for sure - in this world of finance, the only way is up... or maybe sideways if the market decides to take a sudden turn!
Risk management and cybersecurity
- 42% of financial services organizations have experienced a cybersecurity attack in the past year.
- The average cost of a data breach for financial services companies is $5.85 million.
- Online fraud losses for financial institutions are estimated to reach $48 billion by 2023.
Interpretation
The financial industry is facing a cyber battleground with hackers orchestrating their attacks like modern-day heists. With almost half of financial services organizations falling victim to cyber breaches annually, the stakes are sky-high. The average cost of such breaches is a hefty $5.85 million, making data protection a top priority. Furthermore, the looming shadow of online fraud, with estimated losses ballooning to $48 billion by 2023, serves as a stark reminder of the need for robust defenses in this digital age where every dollar lost to cybercriminals is a dent in the financial armor.
Technology adoption in finance
- The digital banking user penetration is projected to reach 72.6% by 2026.
- Around 54% of consumers prefer using online banking as their primary method of banking.
- 56% of financial services companies have adopted artificial intelligence in some form.
- Over 80% of financial institutions have moved some of their workloads to the cloud.
- The fintech adoption rate among digitally active consumers is 64%.
- 64% of financial institutions believe that AI will have a major impact on banking within the next five years.
Interpretation
The financial industry is hurtling towards a digital revolution faster than a Bitcoin price spike. With digital banking set to penetrate nearly three quarters of users by 2026 and over half of consumers already opting for virtual transactions, it's clear that paper checks and bank queues are becoming as outdated as a payphone. The rise of artificial intelligence and cloud computing in finance mirrors the industry's tech-savvy shift, with fintech adoption rates also on the rise. As financial institutions brace themselves for AI's imminent impact, it seems the future of banking is not just virtual, but also very much intelligent. So, move over traditional banking—there's a new digital sherif in town.
