United States Fintech Market 2023 : Development and Key Factors

July 21, 2023

Report Ocean has recently published a comprehensive study on the United States Fintech Market, covering the prediction period of 2023-2031. Throughout the years, this report has diligently examined the industry, taking into account various factors such as macroeconomic parameters, consumer buying patterns, microeconomic parameters, GDP growth rate, inflation rate, and market demand-supply scenarios.

Russia-Ukraine War on Market

The market is anticipated to suffer because of the Russia-Ukraine War. The demand for the market has decreased as a result of the political unrest and economic unrest in the area. Also the war had a detrimental impact on global economic activity, adding to inflationary pressures globally and hindering the post-pandemic recovery, even if it was not the primary cause of the slower-than-anticipated economic growth in 2022 and revised estimates for 2023.

United States Fintech Market Witnessing Growth Spurts:

Forecast to Grow at a CAGR of 10.1% by 2027. The market in the United States is growing rapidly. Finance technology has revolutionized the US financial sector and the way Americans engage with money, whether they wish to borrow, invest, purchase insurance, or finance start-ups. Read on to discover the factors that drive the US Fintech market

A recent study conducted by the strategic consulting and market research firmReport Ocean, revealed that the United States fintech market is estimated to grow at a CAGR of 10.1% during the forecast period of 2021-2027. Fintech is growing at a high rate in the United States due to changing business models and the increasing emphasis on boosting customer interaction to boost revenue. Additionally, the increasing digitization of businesses and growing investment in companies offer lucrative growth opportunities to the market. Furthermore, structured government regulations regarding digital payment methods, banking, and credits are also anticipated to drive the growth of the United States Fintech market in the forecast period. However, high risks associated with data privacy and cybersecurity in the fintech platforms may act as a major restraint.

Growth of the E-Commerce Industry is Propelling the United States Fintech Market

With the growth of the e-commerce industry, the fintech market in the United States is also benefiting from significant growth opportunities. Financial technology continuously supports and improves online payment systems that ensure higher levels of security. There are many fintech companies, such as PayPal, Stripe, TransferWise, Venmo, etc., that offer digital payment services both to businesses and to consumers. As more and more Americans rely on e-commerce platforms for acquiring daily-use products, especially after the COVID-19 pandemic, the digitization of their daily lives is contributing to the growth of the fintech market.

Increasing Number of Startups is Driving the United States Market

The fintech market in the United States is booming with startups in various sectors such as banking, healthcare, education, etc. With the increasing number of startups, consumers will have access to a wide variety of services and platforms. Fintech startup Brex, for example, offers corporate cards for credit lines and corporate lab expenses. Another platform called Varo acts as a digital bank for individuals, offering financial services, including savings accounts, money transfers, cash withdrawals, etc. Thus, with the growing number of startups, the United States fintech market is also set to grow.

United States Fintech Market – By Deployment

Based on deployment, the United States fintech market is segmented into cloud and on-premise. The cloud segment accounts for the largest market share as it allows businesses to store and manage data remotely and with higher security. It also provides opportunities to small and medium-sized businesses for expansion while eliminating the need to establish physical hardware setup for services. Moreover, cloud service companies like Amazon Web Services, Alibaba Cloud, etc., are also giving the cloud segment significant opportunities in the United States market.

Source: United States Fintech Market 2023 : Development, Growth, Key Factors And Forecast To 2031.