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The US FinTech Market is Expected to USD 8 trillion in Terms of the Transactional Value in the Future : Ken Research

Posted on 04 November 2016 by KenResearch Banking Financial Services and Insurance ,

The number of start ups in the US have increased in the last 5 years. This has been due to the supportive environment for the growth of startups in the country. The number of startups positively impacts the business finance segment of the US FinTech market in terms of the transactional value.

The population of the country directly co-relates with the availability of funds and hence the financial technology required by the people. Steady population incline in the past five years has fueled the growth of the industry.

US Digital Payments market includes all the transactions for which the payment has been made online, which can be classified into Digital commerce, Mobile wallet payments and P2P money transfer transactions.

The P2P Lending model or the peer to peer lending model has been gaining high popularity in the US especially amongst the borrowers. This is mainly because of its low interest rates, simplified application process, and faster lending decisions. This model is rapidly intensifying to new product categories including mortgages student loans, small business loans and others. P2P Lending platforms seemed to have found a forte by offering its customers, including both borrowers and investors better customer experience and faster transactions.

The robo advisory services were led by the startup FinTech firms such as Wealthfront and Betterment. By 2013, these companies were able to capture only a negligible share of the assets under management. Since the advent of the traditional advisors such as Schwab and Vanguard, the robo advisory space has completely been transformed.

It is prudent for FinTech companies to share information with respect to company’s clients, finances so as to gain customer’s trust in the first place. For instance, Angel List, Fundable and several other companies share critical information regarding the current trends in FinTech investment sector and also about the specific industry verticals attracting highest amount of investments.

Technology has largely transformed the way customers purchase their products and other services. Digital commerce has even impacted the travel and consumer foodservice industries as consumers order food and book travel tickets online via mobile phones, tablets or desktops. Owing to rapid rise in online and mobile retail sales and such huge volume of transactions made online by customers involving billions of dollars, payment gateway providers have the ultimate responsibility of enabling safe and secure transactions and counter any malicious practices at the same time

For more information on the market research report please refer to the below link:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html

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Rising Digital Connectivity and Cheaper FinTech Services to Drive the US FinTech Market: Ken Research

Posted on 01 November 2016 by KenResearch Banking Financial Services and Insurance ,

US FinTech market has been largely driven by the technological developments such as data analytics, social networks and increased penetration of the smartphone 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. 

The FinTech market has increased in terms of the transactional value from 2010 to 2015 at a CAGR of 24.5% during 2010-2015.

Digital payment segment (consisting of digital commerce, mobile wallets and P2P money transfers) was by far the most revenue generating segment that saw maximum customer interest and participation. The segment was majorly driven 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 the purpose of receiving online payments. Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets used by customers for making online and in-store payments in the US. Advanced payment security, faster checkout, loyalty rewards and customer ease have been the major factors driving the mobile wallets market in the country. However, Delay in adoption of the required infrastructure such as NFC terminal by retail merchants have prevented mobile wallets from achieving mainstream adoption. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of P2P money transfers. P2P transfer systems have become increasingly prudent to the customers in the US due to absence of a common network for all financial institutions. Peer-to-peer payment apps have made it highly convenient for customer transfer money and their services usually are accompanied with very nominal charges or even free of cost.

According to  Ken Research Analyst Robo Advisors, sub-segment of personal finance sector has grown stupendously during the past few years from 2010 to 2015. Technologies such as the big data, machine learning and others have attracted considerable investment and attention and have allowed robo advisory space to flourish. These firms leverage algorithms and client information to develop preset portfolio distribution and suggestions for investments particular to the individual clients. The advisors can be accessed via rich digital user interface and at very low fees. The robo advisors offer higher transparency as compared to the traditional investors and hence attract more investments. Major players in the market include Vanguard, Charles Schwab Intelligence Portfolio, Betterment, Personal Capital and Wealthfront among others.

The market for business finance was almost entirely driven by business lending companies which raised funds to startups from several industries from both accredited and non-accredited investors. Several business lending companies have come 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 off 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. Business finance market has also grown at a rapid pace in the last five years during the period 2010-2015.

According to the research report, the US FinTech is anticipated to grow at a rapid pace between 2016 and 2020 to USD 8.0 trillion in 2020. P2P money transfer and robo advisor sectors are likely to emerge as the largest contributor to the same.

“Evolution of new tech-savvy startups that have been able to perform things better, faster and in a cheaper way than conventional financial institutions has redefined traditional businesses such as lending, payments and investments. The skyrocketing growth of the industry has created numerous opportunities for every stakeholder of the FinTech ecosystem.”, according to the Research Analyst, Ken Research.

Ken Research announced its latest publication on “US FinTech Market Forecast to 2020 – Mobile Payments and Robo Advisors to Shape Future Growth which provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall FinTech market by business models. The report covers the further segmentations 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 Crowdfunding 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 Crowdfunding Market, US Robo Advisors Market and US Business Lending Market and also for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. The report also 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.

 

Key Topics Covered in the Report:

·          US FinTech Market Introduction and Size by Transaction Value, 2010-2015

·         Investment Environment for FinTech in the US, 2010-2015

·         Growth Drivers, Trends and Developments in US FinTech Market

·         US Digital Payment Market Introduction and Size by Transaction Value, 2010-2015

·         US Digital Payment Market Segmentation

o   By Digital Commerce, P2P Money Transfers or Mobile Wallets, 2010-2015

·         US Digital Commerce Market

o   US Digital Commerce Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US Digital Commerce Market

o   Market Share of Major Players in  US Digital Commerce Market

o   Future Outlook and Predictions for US Digital Commerce Market, 2016-2020

·         US Mobile Payment Market

o   US Mobile Wallet Market Introduction and Size, 2010-2015

o   US P2P Money Transfer Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US Mobile Payments Market

o   Future Outlook and Predictions for US Mobile Payments Market, 2016-2020

·         US Consumer Finance Market Segmentation

o   By P2P Lending or Robo Advisors, 2010-2015

·         US P2P Lending Market

o   P2P Lending Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US P2P Lending Market

o   Market Share of Major Players in  US P2P Lending Market

o   Future Outlook and Predictions for US P2P Lending Market, 2016-2020

·         US Robo Advisors Market

o   Robo Advisors Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US Robo Advisors Market

o   Market Share of Major Players in  US Robo Advisors Market

o   Cost Analysis of Major Players in US Robo Advisor Market

o   Future Outlook and Predictions for US Robo Advisors Market, 2016-2020

·         US Business Finance Market Segmentation

o   By Business Lending or Robo Advisors, 2010-2015

·         US Business Lending Market

o   Business Lending Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US Business Lending Market

o   Market Share of Major Players in  US Business Lending Market

o   Future Outlook and Predictions for US Business Lending Market, 2016-2020

·         US Equity Crowdfunding Market

o   Equity Crowdfunding Market Introduction and Size, 2010-2015

o   Company Profiles of Major Players in US Equity Crowdfunding Market

o   Market Share of Major Players in  US Equity Crowdfunding Market

o   Future Outlook and Predictions for US Equity Crowdfunding Market, 2016-2020

·         US FinTech Market Future Outlook and Projections, 2016-2020

·         Impact of FinTech on Banks

·         Issues and Challenges in US FinTech Market

·         Government Rules and Regulations in US FinTech Market 

·         Analyst Recommendations

·         Macro Economic Factors impacting US FinTech Market, 2010-2020

 

Key Products Covered in the Report

-          Digital Commerce, P2P Money Transfers, Mobile Wallets, P2P Lending, Robo Advisors, Business Lending, Equity Crowdfunding

Companies Covered in the Report

-          Stripe

-          PayPal

-          Authorize.Net

-          Square

-          Apple Pay

-          Android Pay

-          Samsung Pay

-          Chase QuickPay

-          Venmo

-          Dwolla

-          Lending Club

-          SoFi

-          Prosper

-          Betterment

-          Wealthfront

-          Charles Schwab

-          Vanguard

-          Personal Capital

-          Funding Circle

-          Kabbage

-          OnDeck Capital

-          CAN Capital

-          EquityNet

-          Fundable

-          Angel List

-          Crowdfunder

Source :   https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html   

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