Fintech Platform Revenues Surge

Driven by increasing consumer acceptance of fintech-powered solutions, financial technology companies will generate $638 billion by 2024, according to a new study by Juniper Research. The company estimated revenue will reach $263 billion in 2019, a 143 percent growth rate.

In its recently published research, “Fintech Futures: Leading Innovators, Segment Analysis, & Regional Readiness 2019-2024,” Juniper forecasted that technologies—such as big data analytics, machine learning, and blockchain—will become the foundation of fintech platforms, changing the way financial services are delivered and driving fintech platforms to become mainstream.

Juniper asserted that, as an increasing number of consumers accept digital platforms for financial services, these technologies will make new use cases the “new norm.” The study predicts that developing smart contracts, using artificial intelligence to analyze nontraditional data sources for loan underwriting, and personalizing insurance policies via data generated through the Internet of Things will become common practices.

Meanwhile, as consumers warm up to fintech, more businesses will attempt to secure future revenue streams by either replicating fintech platforms or partnering with fintech firms that enable them to offer platforms that appeal to new users outside their normal target audience, such as millennials. The challenge, Jupiter reports, will be to integrate these partnerships in a way that minimizes friction and maximizes control of the overall customer experience.

“The distinction between the fintech suppliers and traditional incumbents will blur in the 2020s; digital engagement will become the norm,” said research author Michael Larner. “The winners will be those that provide personalization allied to an outstanding customer experience.”