The Latest Global Financial Services Industry Statistics Explained
The Asia-Pacific region is expected to record the fastest growth in the financial services sector, at a 9.9% CAGR through 2027.
The statistic indicates that the Asia-Pacific region is anticipated to experience the most rapid expansion in the financial services sector with a compound annual growth rate (CAGR) of 9.9% until the year 2027. This suggests a strong and sustained growth trajectory in the region’s financial services industry over the next few years, outpacing other regions globally. Factors such as increasing digitization, rising middle-class population, and favorable regulatory environments are likely driving this growth. This projection underscores the region’s increasing importance in the global financial landscape and highlights the potential for significant opportunities and investments in the Asia-Pacific financial services sector in the coming years.
The top 5 largest banks, all of which belong to the financial services sector, held over $10 trillion in assets in 2020.
In 2020, the top 5 largest banks, all operating within the financial services sector, collectively held over $10 trillion in assets. This statistic highlights the significant concentration of financial power within a handful of institutions, showcasing their substantial influence on the global economy. The sheer magnitude of assets held by these banks underscores their pivotal role in shaping financial markets, offering various financial services, and potentially impacting economic stability. Such a concentration of assets among a small group of institutions can raise concerns about market competition, regulatory oversight, and systemic risk, emphasizing the importance of monitoring and evaluating the operations of these key players in the financial sector.
The digital payments segment was worth around $5.44 trillion in 2020 and is part of the financial services industry.
The statistic indicates that the digital payments segment within the financial services industry was valued at approximately $5.44 trillion in 2020. This figure represents the total value of transactions conducted electronically through various digital platforms and technologies. As digital payments continue to gain popularity and acceptance globally, this segment has become a significant player in the financial services sector, shaping the way consumers and businesses conduct transactions. The substantial value of $5.44 trillion underscores the increasing reliance on digital payment methods and highlights the growing importance of technology-driven financial services in today’s economy.
The global insurance industry, a part of the financial services, generated approximately $5.2 trillion in premiums in 2019.
The statistic that the global insurance industry generated approximately $5.2 trillion in premiums in 2019 reflects the immense scale and significance of this sector within the financial services industry. This substantial amount of premiums highlights the widespread participation in insurance offerings worldwide, indicating the essential role that insurance plays in managing risk and providing financial protection for individuals, businesses, and organizations. The robust premium revenue also underscores the economic impact of the insurance industry, as it not only facilitates a secure financial future for policyholders but also fuels economic growth by pooling and managing risk on a large scale.
Nearly 1.7 billion adults worldwide do not have access to formal financial services.
The statistic that nearly 1.7 billion adults worldwide do not have access to formal financial services highlights a significant global issue of financial exclusion and inequality. This lack of access to formal financial services such as banking, loans, and insurance, can severely limit individuals’ ability to save, invest, and protect themselves from financial risks. It disproportionately affects the most vulnerable populations, including those living in poverty, rural areas, and conflict-affected regions. Addressing this gap is crucial for promoting financial inclusion, reducing poverty, and fostering economic development worldwide. Efforts to expand financial services to underserved populations are essential in creating a more inclusive and equitable financial system.
The financial services sector contributed to 7.4% of the U.S. GDP in 2020.
The statistic that the financial services sector contributed to 7.4% of the U.S. GDP in 2020 indicates the importance and significant impact of this sector on the overall economy. This percentage represents the portion of the country’s total economic output that can be attributed to activities related to financial services such as banking, insurance, investment, and real estate. A strong financial services sector typically reflects a well-functioning economy with access to capital, credit, and financial products essential for businesses and consumers. Therefore, the fact that this sector contributed a substantial share of the GDP underscores its role in driving economic growth and stability in the United States.
Only 30% of the total global wealth is owned by women, highlighting the gender gap in the financial services industry.
The statistic that only 30% of the total global wealth is owned by women sheds light on the significant gender disparity within the financial services industry. This data suggests that there are systemic barriers and inequalities that hinder women’s access to wealth accumulation and financial opportunities compared to men. The gender wealth gap can be attributed to various factors, including limited access to education, employment opportunities, wage gaps, discrimination in financial services, and cultural norms that undervalue women’s economic contributions. Addressing this imbalance is crucial for promoting gender equality and empowering women economically, as it can lead to more inclusive and sustainable economic growth on a global scale.
The global financial services application market was estimated to reach $103.66 billion by 2025.
“The statistic indicates that the global financial services application market is projected to grow and reach a value of $103.66 billion by the year 2025. This suggests a significant expansion in the adoption and reliance on financial services applications across various sectors such as banking, insurance, investment, and others. The increasing use of technology, digital transformation initiatives, and the demand for more efficient and convenient financial services are driving this growth. Businesses within the financial sector are likely to invest more in developing and implementing innovative applications to enhance customer experiences, improve operational efficiencies, and stay competitive in the rapidly evolving landscape of financial services.”
Mobile banking users are projected to reach 2.5 billion in 2024, reflecting digital trends in the financial services industry.
The statistic indicating that mobile banking users are projected to reach 2.5 billion by 2024 highlights the significant growth and adoption of mobile technology in the financial services industry. This projection suggests a strong digital trend wherein an increasing number of individuals are opting to manage their finances through mobile devices. The convenience, accessibility, and efficiency of mobile banking services have been key drivers in this shift towards digital banking. As a result, financial institutions are increasingly investing in mobile banking technologies to meet the evolving needs and preferences of their customers, leading to a substantial increase in the use of mobile banking platforms globally.
The financial analytics market is projected to reach USD 11.4 billion by 2023.
The statistic “The financial analytics market is projected to reach USD 11.4 billion by 2023” signifies the anticipated growth and valuation of the financial analytics industry. This projection suggests that the market for financial analytics tools, software, and services is expected to expand significantly over the next few years, reaching a total value of $11.4 billion by 2023. This data indicates the increasing demand for advanced analytics solutions within the financial sector, driven by the need for more sophisticated insights, decision-making capabilities, and risk management strategies. With the digital transformation of financial services and the growing emphasis on data-driven decision-making, the financial analytics market is set to experience substantial growth and innovation to meet the evolving needs of the industry.
The global P2P lending market size was valued at $67.93 billion in 2019 and is expected to reach $558.91 billion by 2027.
The statistic indicates the substantial growth potential in the global peer-to-peer (P2P) lending market over the forecast period. Starting from a significant value of $67.93 billion in 2019, the market is projected to expand exponentially to reach $558.91 billion by 2027. This significant increase reflects the increasing popularity and adoption of P2P lending platforms as alternative sources of financing for individuals and businesses. Factors such as technological advancements, increasing internet penetration, and the demand for quicker and more flexible lending options are expected to drive this growth. The forecasted robust growth in the P2P lending market highlights the evolving landscape of the financial industry and the changing preferences of borrowers and investors.
Cyber attacks cost financial services firms more to address and contain than in any other industry, at an average of $18.3m per company surveyed.
This statistic highlights the financial impact of cyber attacks on the financial services industry compared to other industries, indicating that financial services firms face higher costs to address and contain cyber threats. The average cost of $18.3 million per company surveyed is a significant burden, portraying the substantial financial resources required to prevent, respond to, and recover from cyber attacks. The data underscores the critical importance of cybersecurity measures for financial institutions to safeguard their assets, protect customer data, and maintain trust in the industry. This statistic serves as a reminder of the constant threat posed by cyber attacks and the need for robust cybersecurity strategies in the financial services sector to mitigate risks and minimize financial losses.
The global robo-advisors market size was valued at USD 6.5 billion in 2020.
The statistic “The global robo-advisors market size was valued at USD 6.5 billion in 2020” represents the total market value of robo-advisors worldwide in the year 2020. Robo-advisors are automated investment platforms that use algorithms and technology to provide financial advice and manage investment portfolios. The USD 6.5 billion figure indicates the significant scale and growth of the robo-advisors market, showcasing the increasing popularity of these digital investment tools among investors seeking convenience, cost-effectiveness, and efficient portfolio management services. This statistic suggests a growing trend towards automated and technology-driven investment solutions in the financial services industry.
The Global FinTech Market was valued at USD 5,504.13 Billion in 2019 and is expected to reach USD 13,577.37 Billion by 2025.
The statistic indicates that the Global FinTech market experienced significant growth, with a value of USD 5,504.13 Billion in 2019 and is projected to increase to USD 13,577.37 Billion by 2025. This growth represents a substantial rise in the adoption of financial technology solutions worldwide. Several factors such as increasing digitalization, changing consumer preferences, and advancements in technologies such as blockchain and artificial intelligence have contributed to this rapid expansion. The forecasted value of USD 13,577.37 Billion by 2025 suggests a promising future for the FinTech industry, with continued innovation and investment expected to drive further growth in the coming years.
The Online Payment Gateway Market is projected to grow from USD 17.2 billion in 2020 to USD 42.9 billion by 2026.
The statistic that the Online Payment Gateway Market is projected to grow from USD 17.2 billion in 2020 to USD 42.9 billion by 2026 indicates a significant increase in market size and demand for online payment processing services over the forecast period. This represents a compound annual growth rate (CAGR) of x%, reflecting the strong trend towards digitalization and e-commerce adoption, driving the need for secure and efficient online payment solutions. Factors such as the proliferation of smartphones, expanding internet access, and the evolution of consumer behavior towards online shopping are contributing to the robust growth prospects for the online payment gateway industry. The forecasted growth in market size signals opportunities for existing and new players to capitalize on this expanding market, adapting to the changing landscape of digital transactions and international commerce.
The blockchain technology in the financial sector market size expected to grow from USD 241.9 million in 2016 to USD 339.5 million in 2021, at a Compound Annual Growth Rate (CAGR) of 61.5%.
The statistic indicates that the market size of blockchain technology in the financial sector is projected to increase significantly over the specified period, from USD 241.9 million in 2016 to USD 339.5 million in 2021, with a Compound Annual Growth Rate (CAGR) of 61.5%. This indicates a strong upward trend in the adoption and investment in blockchain technology within the financial sector. The high CAGR signifies rapid growth and illustrates the potential for blockchain to revolutionize traditional financial systems by enhancing security, transparency, and efficiency in transactions. This expected growth suggests increasing confidence and interest from financial institutions and investors in leveraging blockchain technology for various applications within the sector.
Conclusion
After examining the latest statistics and trends in the global financial services industry, it is evident that the sector continues to play a crucial role in the world economy. With technological advancements, regulatory changes, and shifting consumer preferences shaping the industry landscape, financial institutions must adapt and innovate to stay competitive. By staying informed and leveraging data-driven insights, businesses can navigate challenges and discover opportunities for growth and success in today’s dynamic financial services market.
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