NEW YORK–A new analysis suggests the global fintech personal finance industry is expected to be worth $1.5 trillion in 2020.
Data gathered by LearnBonds.com indicates the market is growing by 45.1% year-on-year, and projects the trend is set to continue over the coming years, with personal finance transactions reaching nearly $2.7 trillion by 2023.
In releasing its analysis, LearnBonds.com pointed to data from Statista that found in 2017 fintech personal transactions hit $291.1 billion, while the market value of fintech firms jumped to $1.5 trillion.
“The number of users in this sector of the fintech market is forecast to hit 79 million this year, growing by a massive 49.5% year-on-year,” LearnBonds.com said. “Over the next three years, the number of people using fintech personal transactions is expected to almost double and jump to 147 million globally.”
According to the report, investing through online platforms, known as robo-advisors, is the largest part of this sector and is expected to top $2.5 trillion, giving it a 94% share of the fintech personal finance market by 2023.
Cross-border online money transfers made by the migrant population, known as digital remittances, is the second-largest segment of the fintech personal finance market, and is expected to hit $95.9 billion in transaction value this year. Fintech giants in the space include Transferwise, Remitly, and Worldremit.
The number of people using digital remittances is expected to rise to 13.2 million in the next three years, according to LearnBonds.com.
U.S. Leads the Market Through 2023
With more than $1 trillion in transaction value and 75% market share in 2020, the U.S. is the leading market for fintech personal finance services in the world, according to the company. China ranked as the second-largest industry, with $317 billion worth transactions.