Ken Research announced its recent publication on FinTech market titled, ” US FinTech Market Forecast to 2020 – Mobile Payments and Robo Advisors to Shape Future Growth“. The report provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall market by business models. The report covers the further segmentation of different spaces such as Digital Commerce, Personal Finance and Business Finance into sub segments based on the business models. The sub segments (US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowd funding Market, US Robo Advisors Market and US Business Lending Market) are then considered separately and analysis on them has been done individually. The report covers detailed profiles of leading players in the different sub segments along with the share of major players in the market. The potential and future outlook has been individually discussed for the US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowd funding Market, US Robo Advisors Market and US Business Lending Market and for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. It serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the FinTech market in the US.
UNFOLDING THE KEY GROWTH ASPECTS
US FinTech market has been largely driven by the technological developments such as data analytics, social networks and increased penetration of the smart phones which have led to the emergence of newer models such as marketplace funding, people based marketing and several others. Digital connectivity, faster payment options, lower customer acquisition costs through referrals on the social networks have all contributed to the growth and innovation in the FinTech in the US. Although some suggest that consumers resist robo-advisors, over the past years, the technology has been attracting substantial attention and investments. Financial decision-making is increasingly reliant on algorithms applied to wealth management, personal finance management, investment management, risk assessment and other areas of the financial services industry. The FinTech “uprising” has been reshaping the financial sector by cutting costs and improving the quality of services to the consumer with lower time requirement. The FinTech sector has been evident from a variety of industries ranging from payments to wealth management, Robo-advisors and others. There has been a surfeit of start-ups in recent years. Increased Investments, innovation in technology, digital connectivity, and supportive government are some of the factors among others to spur the growth in the FinTech market in the US. The FinTech market has increased in terms of the transactional value, manifold.
Rapidly advancing robo-advisors allow analysts to look into the future and continuously trade securities and other assets based on long-term predictions they are able to build based on a real-time stream of data and machine learning capabilities. Watsonization, which refers to cognitive computing systems that can interpret massive quantities of data, learn as they go, and will hold an information advantage over today’s analysts are reaching new development levels. They will also give investment firms powerful new tools for interacting with investors, assessing risk, enhancing cyber security and more. The growth and development of the robo-advice industry not only has positive financial implications because of lower fees, but also automated systems facilitated inclusion for mass-market consumers. Those consumers can now afford a tailored advice for better use of their funds. Robo-advice powered by technology diminishes the barriers for market entry to a range of completely new types of players. Both financial and non-financial services firms can take advantage, bringing new levels of competition and innovation to the industry. For instance, we are likely see more asset management and insurance firms adding wealth advice to their distribution and effectively entering wealth management; non-financial service firms with access to large numbers of retail investors and leading-edge technology firms will likely enter wealth management through a robo-advice model.
With the pace of improvement that AI in US markets, machine learning and overall technology goes through, robo-advice has the potential to become highly personalized and specific over time, meeting particular needs of different groups. Algorithms don’t have an affluence towards a particular task like fund allocation; the very idea here is that automated advice can get to the point where it can be tailored to analyse any stream of data by demand and become a highly personalized personal assistant in anything. Recognizing a multi-trillion-dollar opportunity, a range of institutions are already investing in the exploration of big data analytics, machine learning and AI application across industries: in customer acquisition, marketing, customer retention, loyalty programs, risk management, etc. Firms are effectively leveraging these solutions to increase the cross-sell and up sell opportunities, understanding customer requirements and providing customized packaging. Card-linked offers, customized reward solutions are some of the offerings that are being provided by financial technology firms. Robo-advising is not a proprietary breakthrough for investment management; it is a chance for a range of industries to leverage the power of machines in order to jump to the next level of customer service.
Digital payment segment was by far the most revenue-generating segment that saw maximum customer interest and participation. The segment was anchored by the overwhelming sales of e-commerce market in the country. PayPal, Authorize.Net, Stripe and Square were the major payment gateways used by online retail merchants for receiving online payments. Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets by customers for making online and in-store payments in the US. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of money transfer.
Consumer finance market witnessed an exponential growth in the last five years. The mobile payment space has already been highly crowded with a large number of players already in the space. The market will stay crowded as more players enter from social networks to banks to retail chains and other tech companies and the already existing players will implement newer strategies to maintain their standing in the market. Albeit the plethora of players operating in the market, the market is still at its infancy stage, growth prospects are still high. Vanguard Personal Advisor Services, Charles Schwab, Betterment, Wealthfront and Personal Capital were the leading players in Consumer Finance Market. Lending Club, Prosper and SoFi were the major players that actively raised money for customers in the country. The market for business finance was almost entirely driven by business lending companies, which raised funds to start-ups from several industries from both accredited and non-accredited investors. Several business-lending companies have entered in the last five years, which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. FinTech companies allowing crowdfunding started since 2012 and were almost a billion dollar industry by 2015. EquityNet, Fundable, Angel List and Crowdfunder are some of the key companies that have the first mover advantage in this space.
Topics Covered Topics
- US Financial Technology Market
- Business Lending Market Future
- Challenges Fintech Market
- Pulse of Fintech
- Top Financial Technology Market
- Robo Advisors AUM US
- Fintech Companies United States
- Fintech Market Growth
- United States Fintech
- Global Fintech Market
- US Digital Payments Market
- US Mobile Wallet Market
- Market Size Robo Advisors Market
- Fintech Companies Growth
- Digital Commerce Market
- US P2P Lending Market
- Financial Services FinTech Industry
- Mobile Payments Market
- Marketplace Lending Industry
- US Fintech Market Growth
- US Fintech Market share,
- US Fintech Market trends
- US Fintech Market future
- US Fintech Market analysis
- US Fintech Market
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Ankur Gupta, Head Marketing & Communications