Fintech platform revenues to reach US$638 billion by 2024
Revenues generated by fintech platforms will reach US$638 billion by 2024, driven by increasing consumer acceptance of fintech-powered solutions, according to a newly published research.
The Juniper Research report — Fintech Futures: Leading Innovators, Segment Analysis & Regional Readiness 2019-2024 — found that technologies such as machine learning, Big Data analytics and blockchain would be the cornerstone of fintech platforms.
And such technologies would make new use cases mainstream, including smart contracts, loan underwriting using AI to analyse non-traditional data sources, and personalised insurance policies based on IoT-generated data, the report says.
According to the Juniper research, in light of rising customer acceptance of digital platforms for financial services, traditional players are responding rapidly – and 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 would 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,” Juniper said.
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