The comprehensive report, titled “North America Fintech Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)”, recently added to the ResearchAndMarkets.com repository, delves into the rapidly evolving fintech landscape of North America.
Fintech Market Projected Growth
The report anticipates a significant expansion of the North American Fintech Market, projecting growth from USD 4.93 trillion in 2023 to an impressive USD 9.52 trillion by 2028. This translates to a Compound Annual Growth Rate (CAGR) of 14.07% over the forecast period.
Impact of COVID-19
The COVID-19 pandemic had a dual impact on the fintech sector. It posed challenges by reducing consumer spending and investment, thereby impacting funding opportunities for emerging fintech ventures. Companies reliant on in-person services faced decreased demand due to social distancing norms. Conversely, the pandemic catalyzed the adoption of digital financial services, as contactless payments and online shopping became the norm, opening new avenues for fintech innovations in digital payments, mobile banking, and e-commerce platforms.
Regional Investment Trends
Investments in the fintech sector were highest in North and South America, followed by Asia-Pacific and EMEA. The North American market is characterized by a plethora of startups and emerging businesses, especially those offering AI solutions in financial services. The United States stands out as a leader in the fintech revolution, with one in every three digital consumers using multiple fintech services. Meanwhile, Canada’s fintech ecosystem is poised for growth, with 700 fintech firms operating, including 18 new launches in 2020.
Dominance of the United States
The U.S. holds a dominant position in the North American fintech scene, accounting for over 80% of the region’s total fintech investments. Its market is diverse, with significant investments across payments, lending, wealth management, and blockchain technologies. This dominance is underpinned by a strong ecosystem of investors, accelerators, and a conducive financial and regulatory environment.
Blockchain as a Key Driver
Blockchain technology is a significant driver in the fintech market, reducing costs and complexities of cross-border payments. Fintech companies are rapidly developing platforms for online financial services, with collaborations between global fintech firms, local telecoms, money transfer services, and banks across the U.S., Mexico, and Canada. The COVID-19 pandemic underscored the need for digital banking transformation, prompting collaborations between banks and fintech vendors.
Fintech Market Overview and Key Players
The North American fintech market is somewhat consolidated, with major players like Stripe, Chime, Avant, Wealthsimple, and SoFi leading various sub-sectors. The market’s growth is influenced by factors such as regulatory compliance, capital investment requirements, and network effects.
