Showing posts with label Challenges Fintech Market. Show all posts
Showing posts with label Challenges Fintech Market. Show all posts

Thursday, January 19, 2017

Mobile Payments and Robo Advisors Moulding Future FinTech Growth : Ken Research

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
For more coverage click on the link below:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

Wednesday, December 28, 2016

What is the Impact of US FinTech on Banks: Ken Research

The pursuit of customer centricity has become a main priority for all sorts of financial institutions. The digital consumer’s preference for a superior customer experience, quick response and convenience has accelerated the products and solutions offered by FinTech companies.
Disruptive Effect
Although banks have been slow to adopt technological changes owing to security issues, banking has been one of the sectors that is most resistant to disruption by technology. Retail, media and travel are three of the many sectors that have been significantly disrupted by technological shifts. Banking had largely remained unharmed due to strict regulatory barriers. However, public trust and confidence in this sector is quite low presently and banks and have been hit by sanctions and political rebuke.
Online payments are still a cumbersome process with users needing to type in usernames, passwords, 16 digits from the credit card and other things. Payment wallets and payment gateways have transformed the way customer make payments.
us-fintech-market
Consumer banking, fund transfer and payments are the sectors that are at high risk of disruption by the FinTech industry in the next 5 years. Emergence of online platforms has allowed individuals and businesses to lend and borrow between each other. Establishment of alternative credit models, use of non-traditional data sources and powerful data analytics to value risks, quick disbursement of loans and low operating costs have allowed the FinTech companies to flourish. Moreover, technology driven payment processes and digital wallets that enable easier payments have led to increased use of smartphone and other devices to transfer money and make payments.
Collaborative Effect
Traditional financial institutions are aware of their inefficiencies, slow processes and high fixed costs involved into every transaction. FinTech companies are not just bringing concrete solutions to consumers but also empowering them by providing new services which can be delivered with the use of technological applications. Digital services have been able to address their needs in a more convenient way than traditional nine-to-five financial institutions. Although FinTech companies have been chiefly successful in the transaction and lending aspect of the banking industry, they have had almost negligible effect on traditional banking operations such as deposits and large volume loans.
It is highly unlikely for FinTech companies to replace traditional banks and both can co-exist in a symbiotic relationship…
Collaboration between FinTech and traditional institutions can be an effective way to identify challenges and opportunities as well as to gain a deeper understanding on complementing each other.
How has the Equity Crowdfunding Market Placed?
Crowd funding involves individuals who pool money using a platform to fund the projects by other people or organizations and Equity crowdfunding involves trading equity of a company for the cash collected by the investors. Till 2015, the regulations in the U.S. only permitted accredited entrepreneurs to raise money from equity crowdfunding. These investors have to meet certain levels of wealth, established by the SEC. However, in the near future the SEC would make it legal for entrepreneurs to raise money from the individuals who are not professional investors as well.
The major players in the market include EquityNet, Fundable, Angel List and Crowdfunder with a market share of ~%, ~%, ~% and ~% respectively Equity crowdfunding have observed rapid growth in last few years especially after JOBS act passed in 2012 owing to the above propelling factors. This is coupled with higher comparative regulations in collecting equity funds from other sources. The other important factor which provided an impetus to the equity crowd funding market is the growth of startups in the country and also the implication that the entrepreneurs can move up from seed funding to different levels of funding. This provides them with easy access to the required capital.
The government has been looking forward to boost the confidence for the investors to invest in the market. The title 3 of JOBS act’s regulation CF passed in May 2016 has already allowed the individual investors to invest in the market, further rules and regulations would definitely help boost the investor confidence such as the platforms would have to purchase a fidelity bond of at least USD 100,000 as insurance for crowd funding. However these steps will impact the marketplaces by increasing their operational costs.
In the short run the market would incline at a rapid rate on the back of increased investments by the individual investors, pro investor regulations of the government and increased data availability. This would help the market grow to USD ~billion by 2017.
Further in the longer run, the realization of the disadvantages to the unsophisticated investors, inclined interest rates and higher interest of the institutions would collectively have a dampening impact on the market and slow down the growth rate of deal values in the US Equity Crowdfunding space and lead the market to USD ~billion by 2020.
Key Factors Considered in the Report
  • Comprehensive analysis of the US FinTech market and its segments
  • Listed major players and their offerings
  • Identified major developments in last few years and assessed the future growth of the industry
  • Government initiatives taken to stimulate the growth of the market.
  • United States Market Trends Fintech
  • Business Lending Market Future
  • Global Fintech Market
  • Challenges Fintech Market
  • Financial Services FinTech Industry
  • Fintech Market Growth
  • Top Financial Technology Market
  • Mobile Payments Market
  • Money Transfers Market United States
  • Digital Commerce Market
  • Marketplace Lending Industry
  • Loan Disbursed FinTech

Companies Cited in the Report
List of Major Companies       Companies Covered in the Report
Android Pay
Angel List
Apple Pay
Authorize.Net
Chase QuickPay
Crowdfunder
Dwolla
EquityNet
Fundable                                             Major Players
Lending Club
OnDeck Capital
PayPal
Stripe
Vanguard
Venmo
Wealthfront
For more information about the publication, refer to the below link:
Related Reports:
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249