Showing posts with label US Digital Payments Market. Show all posts
Showing posts with label US Digital Payments Market. Show all posts

Wednesday, December 28, 2016

US Financial Technology Market Outlook To 2020: Ken Research

How has the P2P Lending Segment Grown?
The P2P Lending model or the peer to peer lending model has been gaining high popularity in the US especially amongst the borrowers. This is mainly because of its low interest rates, simplified application process, and faster lending decisions. This model is rapidly intensifying to new product categories including mortgages student loans, small business loans and others. P2P Lending platforms seemed to have found a forte by offering it s customers i.e. both borrowers and investors better customer experience and faster. Big data and other such technologies have been helping the technology driven marketplace investors. The investors can look onto the borrower profile and select to which borrower he wants to extend the loan to. Although the market is still in its infant stage, the platform issued around USD ~million in 2015 increasing at a CAGR of ~% from 2010 to 2015. Major players in the market include Lending Club, SoFi, Prosper and others with Lending club leading the market in terms of the loan disbursed followed by SoFi and Prosper as of 2015.
united-states-fintech
The P2P Lending appeals to underserved millennials to provide them with opportunities for accessing the credit from these sources since there are times when they are not able to do it from the banks. Currently the target population is around 65 million and still growing which provides high growth opportunity for the market in the future. It is expected that the market will move towards high concentration since rising interest rates will put pressure on the refinancing activities and hence smaller player would face troubles attracting borrowers. It is also expected that the wide range of investors would eventually be replaced by higher proportion of large supplies such as institutional investors and banks since they have been drawn to the marketplace by strong unlevered yields and expected credit performance across a large portfolio of loans. The market is expected to grow and reach the levels of USD ~Billion by 2020 in terms of loan disbursed.
What is the Future Outlook of Robo Advisor Market?
During the past few years from 2010 to 2015, the technologies such as the big data, machine learning and others have been attracting considerable investment and attentions. These firms leverage algorithms and client information to develop preset portfolio distribution and suggestions for investments particular to the individual clients. The advisors can be accessed via rich digital user interface and at very low fees. Albeit the high growth of the robo advisors in the investment market, they still are at a very nascent stage with only around ~% of the total invested assets under management. Since the robo advisors use algorithm driven automated investment techniques, they incur less cost and hence are priced lower than the traditional investment advisors. The traditional advisors charge around ~% of the management fee while the robo advisors charge only one third or even a quarter of the fee charged by a traditional investment advisor.
The robo advisors offer higher transparency as compared to the traditional investors and hence attract more investments. The market has grown from USD ~Billion in 2010 to around USD ~Billion in 2015 Major players in the market on the basis of asset under management include Vanguard with a share of ~% followed by Charles Schwab Intelligence Portfolio with ~% share in total assets under management.
Most of the underserved clientele of the financial advisory space have been the people whom either manage their own assets or do not prefer to go to the advisors due to the high fees. Robo advisors have provided advanced advisory services which have made the automated portfolio management accessible, affordable, and amazingly convenient. Moreover, robo advisors offer customized advices according to client’s need and wants anytime they want. They use advance algorithm driven investment software and analytics technique which makes their services more reliable (since there won’t be difference of interests) and cheaper.
How has the Business Lending Segment Performed?
Small and medium sized enterprises (SMEs) are considered as one of the major drivers of economies and a reckoning force in job creation. They accounted for more than half of the world’s GDP and employ almost two-thirds of the global work force. Small businesses always have a hard time to secure financing as compared to larger established players in any industry. The challenges have grown even more in the recent years amidst the backdrop of global financial crisis of 2007-008 and higher regulations and capital costs for loans.
In the US, bank debt accounted for more than USD ~billion of SME funding, followed by credit card debt of about USD ~billion as of 2015. Small businesses with revenues of more than USD 500,000 per year account for about ~% of all credit revenues of banks. The US FinTech business lending market has grown at an unprecedented pace in the last five years from USD ~million in 2010 to USD ~million in 2015 in terms of loan disbursed. This represented growth at a CAGR of ~% between 2010 and 2015.
The major players in the business lending market include Funding Circle, OnDeck, Kabbage, CAN Capital and others with OnDeck and CAN capital leading the market in terms of loan disbursed. The business lending market has grown at an impressive CAGR of ~% from 2010 to 2015 and is expected to grow further at remarkable rate. In the short term scenario, the market is expected to show a lower rate of growth since past two years have not only been the years of innovation but also startups which mean high growth and newer business models. It is expected that the market will show the correction phase along with the consolidation in the market. However this would act as a much needed pain and the industry will still rise fueled by the increasing number of small businesses, startups and their mounting capital needs, innovation in technologies such as for risk minimization and process streamlining will help the market stay on a growth trajectory. In the longer run, the overall scenario remains positive. The market is expected to reach USD ~Billion by 2020.
Key Factors Considered in the Report
Comprehensive analysis of the US FinTech market and its segments
Listed major players and their offerings
Identified major developments in last few years and assessed the future growth of the industry
Government initiatives taken to stimulate the growth of the market.
US Financial Technology Market
US P2P Lending Market
US Digital Payments Market
US Mobile Wallet Market 
Market Size Robo Advisors Market
Robo Advisors AUM US
Global Fintech Market
United States Fintech 
Market Forecast Equity Crowd Funding
Pulse of Fintech
Fintech Companies United States
Fintech Companies Growth
Challenges Fintech Market
Financial Services FinTech Industry
Top Financial Technology Market
Mobile Payments Market 
Money Transfers Market United States
Digital Commerce Market
Marketplace Lending Industry
Companies Cited in the Report
List of Major Companies       Companies Covered in the Report
Android Pay
Angel List
Apple Pay
Authorize.Net
Betterment
CAN Capital
Charles Schwab
Chase QuickPay
Crowdfunder
Dwolla
EquityNet
Fundable                                             Major Players
Funding Circle
Kabbage
Lending Club
OnDeck Capital
PayPal
Personal Capital
Prosper
Samsung Pay
SoFi
Square
Stripe
Vanguard
Venmo
Wealthfront
For more information about the publication, refer to the below link:
Related Reports:
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Tuesday, November 8, 2016

Digital Payments and Personal Finance were the Most Revenue Generating Segment in the US Fintech Market : Ken Research

The US FinTech business lending market has grown at an unprecedented pace in the last five years. The major players in the business lending market include Funding Circle, OnDeck, Kabbage, CAN Capital and others with OnDeck and CAN capital leading the market in terms of loan disbursed.
One of the important factors for the growth of the FinTech market in the US is the huge investor’s interest in this emerging sector. Recently, there has been a drastic incline in investments in the global FinTech space as well.


Equity crowdfunding involves trading equity of a company for the cash collected by the investors or individuals. Till 2015, the regulations in the U.S. only permitted accredited entrepreneurs to raise money from equity crowdfunding. These investors have to meet certain levels of wealth, established by the SEC. However, in the near future, the SEC would make it legal for entrepreneurs to raise money from the individuals who are not professional investors as well.
Although services offered by FinTech companies greatly differ from the traditional financial institutions, they are subjected to same AML regulations. Mobile payment systems, digital wallets, peer-to-peer money transfers and several other services offered by FinTech companies are all money service businesses (MSBs) and are therefore subjected to the Bank Secrecy Act’s (BSA) reporting and compliance requirements.
Financial services market in the country is increasingly regulated. As a result, a particular state or federal regulations can have large scale implication on a company’s performance and operations. FinTech companies need to pay closely follow developments in local, state or federal policies as early relevant notifications are very critical to overcome regulatory risk and utilize the developments to its advantage.
Another important driver of the FinTech industry has been the state and federal government’s regulations and rules which have facilitated the growth of this sector. Post 2008 crisis, there was a massive change in the working environment and several regulations.
The mobile wallets ecosystem has grown at an overwhelming pace in the last four years. Advanced payment security, faster checkout, loyalty rewards and customer ease have been the major factors driving the mobile wallets market in the country. However, in-store payments through mobile wallets have not had much of a success as of yet. Delay in adoption of the required infrastructure such as NFC terminal by retail merchants have prevented mobile wallets from achieving mainstream adoption.
Topics Covered in The Report
  • US Financial Technology Market
  • US Fintech Market
  • US P2P Lending Market
  • US Digital Payments Market
  • US Mobile Wallet Market
  • Market Size Robo Advisors Market
  • Robo Advisors AUM US
  • United States Market Trends Fintech
  • Business Lending Market Future
  • Global Fintech Market
  • United States Fintech
  • Market Forecast Equity Crowd Funding
  • Pulse of Fintech
  • Fintech Companies United States
  • Market Growth Financial Technology
  • Fintech Companies Growth
  • US Fintech Market Size
  • US Fintech Market Growth
  • US Fintech Market share
  • US Fintech Market trends
For more information on the market research report please refer to the below link:
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

Wednesday, November 2, 2016

Rising Digital Connectivity and Cheaper FinTech Services to Drive the US FinTech Market: Ken Research

US FinTech market has been largely driven by the technological developments such as data analytics, social networks and increased penetration of the smartphone have led to the emergence of newer models such as marketplace funding, people based marketing and several others. Digital connectivity, faster payment options, lower customer acquisition costs through referrals on the social networks have all contributed to the growth and innovation in the FinTech in the US.
The FinTech market has increased in terms of the transactional value from 2010 to 2015 at a CAGR of 24.5% during 2010-2015.


Digital payment segment (consisting of digital commerce, mobile wallets and P2P money transfers) was by far the most revenue generating segment that saw maximum customer interest and participation. The segment was majorly driven by the overwhelming sales of e-commerce market in the country. PayPal, Authorize.Net, Stripe and Square were the major payment gateways used by online retail merchants for the purpose of receiving online payments. Apple Pay, Android Pay, Samsung Pay and PayPal wallet were the most used mobile wallets used by customers for making online and in-store payments in the US. Advanced payment security, faster checkout, loyalty rewards and customer ease have been the major factors driving the mobile wallets market in the country. However, Delay in adoption of the required infrastructure such as NFC terminal by retail merchants have prevented mobile wallets from achieving mainstream adoption. Dwolla, Venmo and Chase QuickPay were the pioneers in the space of P2P money transfers. P2P transfer systems have become increasingly prudent to the customers in the US due to absence of a common network for all financial institutions. Peer-to-peer payment apps have made it highly convenient for customer transfer money and their services usually are accompanied with very nominal charges or even free of cost.
According to  Ken Research Analyst Robo Advisors, sub-segment of personal finance sector has grown stupendously during the past few years from 2010 to 2015. Technologies such as the big data, machine learning and others have attracted considerable investment and attention and have allowed robo advisory space to flourish. These firms leverage algorithms and client information to develop preset portfolio distribution and suggestions for investments particular to the individual clients. The advisors can be accessed via rich digital user interface and at very low fees. The robo advisors offer higher transparency as compared to the traditional investors and hence attract more investments. Major players in the market include Vanguard, Charles Schwab Intelligence Portfolio, Betterment, Personal Capital and Wealthfront among others.
The market for business finance was almost entirely driven by business lending companies which raised funds to startups from several industries from both accredited and non-accredited investors. Several business lending companies have come in the last five years which approve funds to applicants within no time. Funding Circle, On Deck, Kabbage, CAN Capital and Lending Club are some of the major companies operating in this space amongst others. FinTech companies allowing crowdfunding started off since 2012 and were almost a billion dollar industry by 2015. EquityNet, Fundable, Angel List and Crowdfunder are some of the key companies that have the first mover advantage in this space. Business finance market has also grown at a rapid pace in the last five years during the period 2010-2015.
According to the research report, the US FinTech is anticipated to grow at a rapid pace between 2016 and 2020 to USD 8.0 trillion in 2020. P2P money transfer and robo advisor sectors are likely to emerge as the largest contributor to the same.
“Evolution of new tech-savvy startups that have been able to perform things better, faster and in a cheaper way than conventional financial institutions has redefined traditional businesses such as lending, payments and investments. The skyrocketing growth of the industry has created numerous opportunities for every stakeholder of the FinTech ecosystem.”, according to the Research Analyst, Ken Research.
Ken Research announced its latest publication on “US FinTech Market Forecast to 2020 – Mobile Payments and Robo Advisors to Shape Future Growth” which provides a comprehensive analysis of the FinTech market in the US and covers market size and segmentation of overall FinTech market by business models. The report covers the further segmentations of different spaces such as Digital Commerce, Personal Finance and Business Finance into sub segments based on the business models. The sub segments (US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market) are then considered separately and analysis on them has been done individually. The report covers detailed profiles of leading players in the different sub segments along with the share of major players in the market. The potential and future outlook has been individually discussed for the US Digital Commerce Market, US Mobile Wallets Market, US P2P Money Transfers Market, US P2P Lending Market, US Equity Crowdfunding Market, US Robo Advisors Market and US Business Lending Market and also for the overall FinTech market. The report provides detailed analysis of segments, trends & developments, growth drivers and major restraints and challenges within the industry. The report also serves as a benchmark for existing players and for new players who wish to capitalize on the market potential and investors who are looking forward to venture into the FinTech market in the US.
Key Topics Covered in the Report:
  • US FinTech Market Introduction and Size by Transaction Value, 2010-2015
  • Investment Environment for FinTech in the US, 2010-2015
  • Growth Drivers, Trends and Developments in US FinTech Market
  • US Digital Payment Market Introduction and Size by Transaction Value, 2010-2015
  • US Digital Payment Market Segmentation
  • By Digital Commerce, P2P Money Transfers or Mobile Wallets, 2010-2015
  • US Digital Commerce Market
  • US Digital Commerce Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US Digital Commerce Market
  • Market Share of Major Players in US Digital Commerce Market
  • Future Outlook and Predictions for US Digital Commerce Market, 2016-2020
  • US Mobile Payment Market
  • US Mobile Wallet Market Introduction and Size, 2010-2015
  • US P2P Money Transfer Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US Mobile Payments Market
  • Future Outlook and Predictions for US Mobile Payments Market, 2016-2020
  • US Consumer Finance Market Segmentation
  • By P2P Lending or Robo Advisors, 2010-2015
  • US P2P Lending Market
  • P2P Lending Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US P2P Lending Market
  • Market Share of Major Players in US P2P Lending Market
  • Future Outlook and Predictions for US P2P Lending Market, 2016-2020
  • US Robo Advisors Market
  • Robo Advisors Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US Robo Advisors Market
  • Market Share of Major Players in US Robo Advisors Market
  • Cost Analysis of Major Players in US Robo Advisor Market
  • Future Outlook and Predictions for US Robo Advisors Market, 2016-2020
  • US Business Finance Market Segmentation
  • By Business Lending or Robo Advisors, 2010-2015
  • US Business Lending Market
  • Business Lending Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US Business Lending Market
  • Market Share of Major Players in US Business Lending Market
  • Future Outlook and Predictions for US Business Lending Market, 2016-2020
  • US Equity Crowdfunding Market
  • Equity Crowdfunding Market Introduction and Size, 2010-2015
  • Company Profiles of Major Players in US Equity Crowdfunding Market
  • Market Share of Major Players in US Equity Crowdfunding Market
  • Future Outlook and Predictions for US Equity Crowdfunding Market, 2016-2020
  • US FinTech Market Future Outlook and Projections, 2016-2020
  • Impact of FinTech on Banks
  • Issues and Challenges in US FinTech Market
  • Government Rules and Regulations in US FinTech Market
  • Analyst Recommendations
  • Macro Economic Factors impacting US FinTech Market, 2010-2020

Key Products Covered in the Report
  • Digital Commerce, P2P Money Transfers, Mobile Wallets, P2P Lending, Robo Advisors, Business Lending, Equity Crowdfunding
Companies Covered in the Report
  • Stripe
  • PayPal
  • Net
  • Square
  • Apple Pay
  • Android Pay
  • Samsung Pay
  • Chase QuickPay
  • Venmo
  • Dwolla
  • Lending Club
  • SoFi
  • Prosper
  • Betterment
  • Wealthfront
  • Charles Schwab
  • Vanguard
  • Personal Capital
  • Funding Circle
  • Kabbage
  • OnDeck Capital
  • CAN Capital
  • EquityNet
  • Fundable
  • Angel List
  • Crowdfunder
Source :   https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/us-fintech-market-report/54351-93.html   
Related Reports:
The Cards and Payments Industry in the US: Emerging Trends and Opportunities to 2019
North America Mobile Money Industry Review to 2019 - Driven by Collaborations and Increasing Interest in NFC Payments
The US International, Domestic Money Remittance and Bill Payments Market Outlook to 2018 - Tie-ups and Mobile Remittances to Foster Future Growth
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249