Fintech Revolution – APAC Set to Rule Global Market by 2030
According to “Global Fintech 2023: Reimagining the Future of Finance,” a report by BCG and QED Investors, the Asia-Pacific region, represented by India, Indonesia, and China, will overtake the US as the world’s leading fintech market by 2030. The survey predicts fintech will account for 7% of revenue by 2020 and is expected to rise sixfold to $1.5 trillion from $245 billion by 2030. BCG senior partner and managing director Deepak Goyal, co-author of the research, stressed the need to improve customer experience and address the unbanked and underbanked. As the world’s largest fintech market, Asia-Pacific regulators must balance innovation with preventing various fintech frauds.
Payments have driven fintech growth since 2000, accounting for 25% of aggregate equity capital of $120 billion. B2B and B2B2X services for small firms will lead the next fintech evolution. B2B2X players—B2B2C, B2B2B, and financial infrastructure—are expected to generate $440 billion yearly revenue by 2030, expanding at 25%. Paytm and Razorpay have spurred fintech growth in India.
The United Payments Interface, Rupay, Aadhar, and Digilocker are market-shaping initiatives of the Reserve Bank of India. Growing GDP and fintech integration in lending and neobanking are expected to propel India’s fintech revenue growth. Fintech faces hurdles from regulatory tightening, price increases, and local rivalry. In India, RBI has been wary of giving banking licenses and cracking down on some fintech businesses. Therefore, a balanced regulatory strategy that stimulates innovation and protects customers is needed. The research urges proactive regulation to encourage infrastructure development and financial inclusion.
By 2030, APAC will dominate the global fintech business. Customer experience, B2B services, and unbanked populations will boost the sector’s revenue share. Regulatory monitoring, local competition, and inflation must be addressed to sustain fintech growth and innovation.
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