DUBLIN--(BUSINESS WIRE)--The "Fintech Blockchain Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The fintech blockchain market is expected to grow at a CAGR of 26.89% during the forecast period.
The rising crypto-currencies market cap and Initial Currency Offering (ICO), increasing demand for distributed ledger technology and adoption of technologically advanced blockchain solutions in various financial instructions such as investment banks, commercial banks, and insurance companies are some of the major factors driving the growth of the fintech blockchain market.
Increasing digital transformation of the financial industry to offer custom digital experiences and digital products is altering the landscape of financial services.
Digital banking technologies such as digital banks, wallets, blockchain technology, automated chatbots for customer service are some of the examples experiencing rising demand as these improve overall operational efficiency, offers a real-time settlement, reduce processing times, and the number of steps and intermediaries required to achieve the same levels of confidence in traditional processes.
Moreover, rising adoption of cryptocurrencies, digital tokens that are built on a distributed ledger infrastructure, often referred to as a blockchain, for making payments is expected to boost the market.
According to the statistical data gathered by Crypterium, Fintech company, shows that the volume of crypto payments and the average amount increased in 2019, reaching a seven-month high in April to approximately USD 1.6 billion. It is expected that the cryptocurrency payment provider in the sector will offer new solutions for both merchants and customers in order to gain maximum returns.
Additionally, the number of wallet address has constantly been growing, and active wallets number worldwide have reached 34 million in the first quarter of 2019, increasing by 44% in the last 12 months. This will also strengthen the market in the future.
Key Market Trends
Insurance Segment is Expected to Experience Significant Growth
As insurance companies are incurring huge losses because of false claims and scams that happen every day in the industry, so most of the players are implementing technologies like blockchain in their existing workflow. For instance, according to the SAP Digital Transformation Executive Study, banking and insurance executives plan to more than double their investments in blockchain by 2019.
The blockchain offers transparent information about the transactions, which creates a sense of trust since the department that is responsible for verifying the authenticity of the claim and decide on how much percentage of the claim can be covered is always in need of a trustworthy repository of data.?
Due to the rapid advancement of technology such as IoT, the amount of data created by the numerous connected devices is increasing multifold and thus require technology that can manage a large volume of data.
With blockchain, insurance companies can manage large, complex networks by having the devices communicate and manage each other on a peer-to-peer basis, securely, instead of building an expensive data center to handle the processing and storage load. Having these devices manage themselves is significantly cheaper than the data center model and, thus, expected to drive the market in the future.
North America Will Experience Significant Growth and Drive the Market
Global cross-border payments are tightly regulated, and expensive distributed ledger technology has reduced some of the costs and improved traceability. Most fintech vendors are rapidly developing and innovating new platforms for the provision of online financial services. Global financial technology companies are partnering with local cellular operators, money transfer operators, and banks across the borders of the United States, Mexico, and Canada.
However, the recent COVID-19 outbreak has highlighted the demand for digital transformation in banking sectors as people are forced to use online services and limit their bank visit. Due to this, most of the banking companies are collaborating with fintech vendors to offer differentiated and competitive services as in the future digital customer experience will be the primary area of competitive advantage and is expected to drive the market.
For instance, in June 2020, the Peoples Community Bank has broadened its existing relationship with Finastra to accelerate its own innovation and product rollouts. The bank plans to upgrade its infrastructure to adopt Finastra's Phoenix core platform, and will further adopt Finastra's Fusion Digital Banking, LaserPro, and other products as part of its digitization initiative.
Moreover, the most significant effect of blockchain technology offered by fintech vendors is reduced fraud and cyber-attacks in the financial world. Blockchain assists in curbing data breaking and other comparable fraudulent operations to enable fintech businesses to share or transfer safe and unaltered information through a decentralized network.
Bitfury Group Limited
Amazon Web Services, Inc.
Digital Asset Holdings LLC
Cambridge Blockchain, LLC
Circle Internet Financial Limited
Ripple Lab Inc.
For more information about this report visit https://www.researchandmarkets.com/r/9fm5f0.