PUBLISHER: SkyQuest | PRODUCT CODE: 1244277
PUBLISHER: SkyQuest | PRODUCT CODE: 1244277
Fintech Blockchain Market size was valued at USD 2.15 billion in 2021 and it is expected to reach at USD 2.65 billion by 2028, at a CAGR of 3.07% over the forecast period (2022-2028).
The Fintech ecosystem is made up of a wide range of participants who are all dedicated to enhancing and developing the competitiveness in the financial sector, ultimately reaping benefits for customers and boosting output. Fintech start-ups, technology developers, governments, financial players, and conventional financial institutions are the five distinct parts of the Fintech ecosystem. In the past ten years, there have been numerous technological advancements in fields including social media, artificial intelligence, big data and cloud computing, virtual reality, and most importantly, blockchain. Fintech applications and developments can be seen in payment and banking, investments and capital markets, loans, crowdsourcing, insurance services, and loyalty programmes.
Simply said, blockchain technology, as defined in the Bitcoin whitepaper, is a shared ledger that is accessible to all members of a community through a peer-to-peer network that is public, trustworthy, and shared. The members of this community may or may not be acquainted, but each one maintains a copy of the data, and any update to the blockchain demands unanimous authentication from all participants. As a result, a third-party facilitator is no longer required. Blocks, which make up a growing proportion of the documents that make up blockchain and which comprise transactions. Consensus mechanisms and cryptographic signatures are employed to safeguard blocks from manipulation. As a result, the blockchain can work as an open system of machines that creates and updates the data. Massive legacy systems that can't be instantly converted into a decentralised architecture are a key element of fintech. Before integrating blockchain, fintech must undergo a large amount of development.
The Fintech sector has changed considerably over the past ten years as a result of technological innovations including artificial intelligence, cloud computing, and blockchain. Particularly in the financial technology sector, blockchain is upending everything. Lack of client visibility is a key source of worry in the financial sector. One of the most important factors in bridging the gap between customers and financial institutions is transparency. Blockchain is useful for boosting transparency because no one entity owns the information processed in the network and it cannot be changed at the whim of one organisation.
Top-down and bottom-up approaches were used to estimate and validate the size of Asia Fintech Blockchain Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
The Global Fintech Blockchain market is segmented based on Provider, Application, Organizational Size, Verticals, and Region. Based on Provider the Fintech Blockchain Market is segmented into Middleware, Application, Solution, Based on Application the Fintech Blockchain Market is segmented into Payments, Clearing, and Settlement, Exchanges and Remittance, Smart Contract, Identity Management, Compliance Management/KYC, Others, Based on Organization Size the Fintech Blockchain Market is segmented into large enterprises, Small and Medium-Sized Enterprises, Based on Verticals the Fintech Blockchain Market is segmented into Banking, Non-Banking Financial Services, Insurance. Based on region the global Fintech Blockchain market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Demand for automated KYC verification using blockchain technology is increasing as a result of factors like growing demand for distributed user data collection, growing need for automation and standardisation of strategy, centralization of control system and risks, democratic accountability and data quality, need for transparency and communication, and notable features like suspicious activity reporting and thorough authentication process. The answer is using blockchain technology to create a complete audit trail in KYC compliance processes, enhancing the bank's regulatory compliance and reducing data validation costs throughout the whole financial network. Additionally, it provides notable advantages like flexible confidentiality and enhanced financial services while upholding the strictest standards of privacy for personal data. Furthermore, compared to conventional verification procedures, using blockchain for KYC verification can result in a faster, simpler, safer, and more effective verification process. Data from many authoritative service providers can be combined into a single intrinsic, verified, and cryptography secured database thanks to blockchain's decentralised computing architecture. For effective customer service and risk management, top software development companies have included blockchain-based KYC financial institutions, which is driving the expansion of the FinTech blockchain market.
A technology element that functions in conjunction with blockchain is a smart contract. Consensus-based decentralised agreements known as "smart contracts" are impenetrable and frequently self-enforcing through automated execution. In order to automate the entire banking process and do away with the necessity for centralised organisations to function as payment authorizers or validators, smart contracts were developed. While the specific standards and characteristics of smart contracts vary between blockchain technologies, all systems aim to provide a dependable network and a secure multipurpose language to enable transactions on the platform to be designed for situations more complex than a straightforward fund transfer. They are commonly used as high-level objects on the blockchain that coexist with transactions and other data.
Peer-to-peer transactions were the main reason that Bitcoin was developed. Yet it rapidly showed that it could be applied to any kind of P2P value exchange over the Internet. Although they were introduced much later, smart contracts attracted a lot of attention. The blockchain layer, where smart contracts that use the ledger to automatically activate transactions when specific predetermined criteria are satisfied, are frequently segregated from the contract layer. Blockchains like Ethereum aim to offer a more adaptable development environment than the Bitcoin blockchain by separating the smart contract layer from the blockchain layer.
Artificial intelligence and big data have an impact on every business (AI). Big data allows businesses to gather personal information about their clients, including their social status, financial behaviour, habits, and app usage. For banks, this information is essential, especially when it comes to credit ratings and other developing financial services. AI automates the entire process of identifying fraud, analysing risk, and efficiently managing transactions using big data. Yet, Fintech firms encounter a variety of difficulties while utilising these technology. They need knowledge and constant upkeep. It will be challenging to integrate new technology into current systems. The implementation of this will unavoidably necessitate not only technology advancements but also organisational transformation and the forced adaptation of consumers and enterprises.
Businesses will need to train AI using machine learning in order to combine it with big data. They will require a lot of data to prepare the algorithm for this. Large volumes of data cannot be handled by the majority of proposed models. As a result, organisations may build a one-shot learning model to address this problem, which also enables them to train their machine learning system on less data.
The banking and finance landscape is evolving as a result of the financial sector's growing digital transformation to offer personalised digital experiences and digital goods. Because they increase overall operational efficiency, provide real-time settlement, and cut down on the steps and counterparties needed to achieve the same levels of confidence as traditional processes, digital banking technologies like online banking, wallets, blockchain technology, and automated chatbots for customer support are some examples that are in greater demand.