Market Trends of North America Fintech Industry
Blockchain Technology is Driving the Fintech Market in North America
Cross-border payments around the world are tightly regulated, and distributed ledger technology, which is expensive, has cut some of the costs and made it easier to track. Most fintech companies are making new platforms for online financial services quickly and coming up with new ideas. Global companies that make financial technology are teaming up with local cell phone companies, money transfer companies, and banks in the US, Mexico, and Canada.
However, the recent COVID-19 outbreak highlighted the demand for digital transformation in the banking sector, as people were forced to use online services and limit their bank visits. Due to this, most banking companies were collaborating with fintech vendors to offer differentiated and competitive services, as in the future, the digital customer experience will be the primary area of competitive advantage and is expected to drive the market. For instance, in June 2020, the Peoples Community Bank broadened its existing relationship with Finastra to accelerate its innovation and product rollouts.
The bank plans to upgrade its infrastructure to adopt Finastra's Phoenix core platform and will further adopt Finastra's Fusion digital banking, LaserPro, and other products as part of its digitization initiative. Moreover, the most significant effect of blockchain technology offered by fintech vendors resulted in a reduction in fraud and cyberattacks in the financial world. Blockchain assists in curbing data breaches and other comparable fraudulent operations to enable fintech businesses to share or transfer safe and unaltered information through a decentralized network.
United States Leading North America Fintech
United States Fintech market is observing a continuous expansion with an increasing market value over the years. Neo-banking and digital payments are among the segments with the leading transaction value in the United States fintech market leading to an increase in fintech investments by new emerging players. Stripe, Chime, and Ripple are among some of the largest existing fintech companies in the United States with Stripe existing with a market value of more than USD 50 Billion last year. The age group between 18 and 40 years is among the users who have significant trust in the fintech brands in comparison to other financial services. These trends in the United States are driving the fintech business in North America.
