I blogged about tokenizing everything the other day and my friend Efi made an interesting post the other day, related to this, about a report from the Boston Consulting Group. The report focuses upon India, which claims to be the third largest FinTech economy behind America and Britain, and specifically calls out a few key trends. In particular, as Efi focuses upon WealthTech, alternative asset classes are gaining a major share of investments over traditional assets. The interest is mainly in private markets and in blockchain-based WealthTech platforms that can enable tokenization. Meanwhile 'Robo-advisory' has been losing attention ... but this may change. For example, Boston Consulting Group (BCG) predicts that digital assets that are tokenized will become a $16 trillion business by 2030.
In its September 2023 report `The Second Wave Resilient, Inclusive, Exponential Fintechs’, BCG highlights five major, global trends in FinTech:
Here is the Executive summary:
- Global Fintech revenues will see five-fold growth to reach $1.5 trillion by 2030
- APAC (Asia Pacific) will become the centre of gravity for Fintechs globally, along with NAMR (North Americas) – both three times of next best by revenue: APAC and NAMR with $600 billion and $520 billion revenue by 2030
- Digital Payments and Digital Lending will attain critical mass and generate 60% of global Fintech revenue
- Neo Banking, InsurTech, and Financial Infra will be exciting spaces – highest growth in revenues across segments
- Neo Banking is a differentiated opportunity, and SME Services in developed economies as one-stop shop
- Banking in emerging economies to cater to the unbanked and underbanked population is a big opportunity
- InsurTech led by B2B (enabling businesses serving other businesses/customers) will grow
- Financial Infrastructure led by B2B models, to support the growing needs of the Financial ecosystem
- Global Fintech funding peaked in 2021, followed by 'Funding Winter' in 2022, now showing recovery signs in 2023
- Pre-seed/Seed Fintechs hit less harshly in 'Funding Winter' (-3%); late stage companies hit harder (-50%)
- Global funding is evenly distributed across segments, but regional variations occur based on the maturity of the ecosystem
- Emerging geographies (APAC, LATAM and Africa) will have a higher share of investments in fundamental digital services
- Payments and Lending will see the developed world (NAMR and Europe) with a higher share of investments in WealthTech and Financial Infrastructure
You can find out more here and, meantime, here’s the report
Related: Ant Group Creates an Everywhere Asia Mobile Payment Ecosystem