Post by account_disabled on Mar 10, 2024 4:46:06 GMT 1
The financial technology market is booming, as startups in the sector are working to disrupt all areas of finance.
The growth the sector has seen this year is expected to continue unabated in 2019, with a forecast setting the compound annual growth rate at 74.16% from 2019 to 2025.
When it comes to the areas these startups aim to disrupt, they run the gamut from banking to insurance.
And while some industries will see more growth than others, traditional financial services companies should prepare for another shakeup in 2019.
With this in mind, industry players across the fintech spectrum weighed in on their predictions for the market in 2019.
Insuretech becomes mainstream:M&A
Fintech technologies are slowly entering the insurance area.
We will see changes in the way insurance is sold when it is integrated with other home services, especially apartment rentals and home sales.
Businesses will see a sharp increase in all Ecuador Mobile Number List types of commercial insurance that they can purchase directly online rather than through brokers.
One area that the investor believes will see drastic growth is cyber insurance, as it becomes commonplace for companies to have this type of coverage.
As hackers become more sophisticated and data breaches occur at an even faster rate, threatening the reputation of businesses of any size, companies will want to protect themselves.
The insuretech market (fintech applied to insurance) will attract a lot of interest from investors in the coming year.
More mergers and acquisitions ( M&A ) are expected to be seen as traditional insurance companies see the potential of insuretech startups to drive growth and acquire the direct-to-customer distribution channel.
Online lending growth may slow, but fintechs will adapt
Online lending is a more mature area of the fintech market, but that doesn't mean it will see a slowdown next year.
Even against a backdrop of macroeconomic uncertainty and a growth rate that could see year-on-year declines.
Financial companies in the lending space will create “white label” lending platforms and develop software as a service relationships with banks and credit unions as an alternative revenue stream.
4 Fintech forecasts for the new year
4 Fintech forecasts for the new year
Fintech will make the loan origination process even faster in the new year, by investing in greater automation to replace manual processes.
Fintech will remain private
This year, many technology companies, particularly in the software industry, entered the public markets through public offerings.
Airbnb and Uber are expected to launch an IPO in the new year, but they could be the exceptions.
Capital markets data show that the average age at which companies go public has increased from 6.3 years in the 1980s to 10.2 years this decade.
In 2019, CEOs and their boards will continue to balance the needs of a wide range of stakeholders as they evaluate whether to go public.
By staying private longer, fintechs will find more pressure to ensure liquidity, which will be critical for startups to maintain their momentum.