(APAC) is set to overtake the United States as the world’s largest financial technology (fintech) market by 2030, according to a report by Boston Consulting Group (BCG) and QED Investors.
The report, Global Fintech 2023: Reimagining the Future of Finance, predicts that APAC will have a compound annual growth rate (CAGR) of 27 percent, surpassing North America’s CAGR of 17 percent.
The growth will be driven by Emerging APAC countries such as China, India, and Indonesia, which have a large population of underbanked individuals and a rising tech-savvy middle class. The region is also home to some of the largest fintech companies in the world.
The report, Global Fintech 2023: Reimagining the Future of Finance, predicts that APAC will have a compound annual growth rate (CAGR) of 27 percent, surpassing North America’s CAGR of 17 percent.
The growth will be driven by Emerging APAC countries such as China, India, and Indonesia, which have a large population of underbanked individuals and a rising tech-savvy middle class. The region is also home to some of the largest fintech companies in the world.
The report stated that fintech revenues are projected to experience explosive growth in the next decade, with a sixfold increase from USD 245 billion to USD 1.5 trillion by 2030.
Additionally, the report predicts that the fintech sector will account for 7 percent of the USD 12.5 trillion in global financial services revenue by 2030, up from its current 2 percent share.
Banking fintechs are expected to make up almost 25 percent of all banking valuations worldwide by 2030.
It also emphasises that stakeholders, including regulators, incumbents, and fintechs, must seize the moment to revolutionize the financial services industry, especially since more than half of the world’s population remains unbanked or underbanked.
