Science & Technology

Fintech platform revenues to grow more than twice by 2024

AI & Blockchain to catalyze fintech adoption

Fintech platform revenues to grow more than twice by 2024. Source: shutterstock.com

New data from Juniper Research has found that fintech platform revenues will reach $638 billion by 2024, up from an estimated $263 billion in 2019; driven by increasing consumer acceptance of fintech-powered solutions.

According to the new research, technologies such as machine learning, Big Data analytics and blockchain will be the cornerstone of fintech platforms. These will fundamentally alter the way financial services are delivered and drive fintech platforms to become the ‘new normal’. Such technologies will make new use cases mainstream, including smart contracts, loan underwriting using AI to analyze non-traditional data sources, and personalized insurance policies based on IoT-generated data.

In light of rising customer acceptance of digital platforms for financial services, traditional players are responding rapidly. Incumbents are attempting to replicate the fintech firms’ offerings; for example with digital banking offshoots (Marcus from Goldman Sachs) or new services (HSBC’s Wealth Compass). The research argued that incumbents will use these strategies to appeal to users outside their normal target audience, such as millennials, to secure future revenue streams.

Where incumbents cannot replicate the fintech platforms, they are partnering with fintechs. For example, Austrian banking group Bawag is using Spotcap’s lending-as-a-service platform to support SME lending. However, the research claimed that the challenge would be to integrate these partnerships in a seamless way, keeping friction low and maintaining control of the overall customer journey.

Meanwhile, the research found that heavy regulatory burdens imposed on financial institutions after the 2008 financial crisis also mean that direct entry, beyond partnerships, remains unlikely in the medium term for even large technology companies.

SEE ALSO: Digital Banking Age: how to remain competitive

Pay Space

6691 Posts 0 Comments

Our editorial team delivers daily news and insights on the global payment industry, covering fintech innovations, worldwide payment methods, and modern payment options.