Amidst the doom and gloom of major bank collapses, talk of the ‘r’ word (recession) and VC’s not funding like they used to, conversations around a shrinking Fintech market and uncertain future have been buoyant.
However, according to Market Data Forecast’s recent Fintech Report, the global Fintech market is expected to reach $334 billion by 2026, growing at a compound annual rate of more than 25% between 2022 and 2027.
So why are Fintech companies finding successful growth despite banking collapses?
The Fintech market is growing, but where?
The pandemic and post pandemic has witnessed a significant surge in the demand for digital payments and various Fintech services. With more people using online banking services, there has been an increase in the use of digital platforms to transfer money and make e-commerce transactions.
Pivoting with the market shift
Digital banks and Fintech platforms are growing at an impressive rate, opening new opportunities for consumers and businesses alike. These new banking technologies have the power to expand access to financial services, streamline processes, and make banking more efficient.
Digital banking and Fintech platforms are not just shaking up the industry; they’re also bringing about innovative changes. They provide opportunities for underserved populations to access financial services, reduce costs, and improve efficiency. These advancements are not only transforming the way we bank but also driving financial inclusion and empowerment.
Growth in areas that mitigate risks
New Fintech companies that are emerging on to the scene and that are seeing large growth meet this new ‘online demand and risk mitigation’ and are making successful profit quickly. Risk mitigation solutions include Balance Sheet, Liquidity and Treasury Management found in traditional banking systems.
But it’s not just the Fintech companies that are making waves. Traditional banks are also getting in on the action. They’re investing in these smaller rivals, buying up start-ups or launching their own digital banking platforms to meet the growing demand for convenient and innovative financial services.
The Middle East hot spot for $2 BN VC funding
The Fintech sector in the Middle East is experiencing a remarkable growth rate of 30% annually. More than 800 Fintech companies are set to make their mark by the end of 2023. The Middle East Institute estimates that these ambitious Fintech ventures will raise a whopping $2 billion in venture capital funding.
In it to win it mentality
As recruitment specialists with a broad range of Fintech clients, one trend we continue to see is that you have to be in it, to win it. New Fintech start-ups that are jumping on market trends and key market opportunities are seeing exponential growth. If we can help you to expand your sales team, hire your first salesperson in a start-up, or to enable expansion into a new region, we’d love to chat. Fill out the contact form on our website or find us on LinkedIn and we will come straight back to you.