Railsr has been highlighted in a key market report which reported that the global fintech-as-a-service market size, of which embedded finance experiences is a part, is expected to reach USD949.49bn by 2030, growing at a CAGR of 17.2% from 2022 to 2030.
The new report is published by Grand View Research.
It said of Railsr: “The investments made in financial technology companies are estimated to generate opportunities for market growth over the forecast period. For example, an API developer, Railsr, raised USD70m in a fundraising event headed by Anthos Capital, a US-based investment company, in July 2021. The funds would be used to develop the company's fintech-as-a-service platform and to provide customers with various product development solutions.”
The main driver behind the growth is the increasing global adoption of financial technology-based solutions and platforms globally.
This, when combined with the increasing adoption of artificial intelligence, cloud-based software, and big data integrated with financial services, will significantly boost the growth of the market for fintech-as-a-service.
As for individual segments, the report said, that the:
fund transfer segment is expected to witness the fastest growth during the forecast period;
artificial intelligence segment is anticipated to witness the fastest growth over the projected period. The segment growth is attributed to the increasing adoption of AI among various small and medium enterprises worldwide for digital payment solutions;
KYC verification segment is expected to witness the fastest growth during the forecast period and that rising fraudulent activities, such as ransomware and theft identification the major factors that propelled the growth in 2021;
insurance segment is expected to witness the fastest growth during the forecast period. To keep up with the consumers' changing preferences, insurers are offering flexible term products and are customising their offerings according to customer needs. With this changing trend, insurers are adopting the Fintech-as-a-Service platform which is driving the growth.
The report highlighted the fact that the growing utilisation of smartphones for online transactions and fintech-related services through digital platforms is anticipated to drive the growth of the market. Approximately 44% of the payments were routed through a mobile app. What’s more, 64% of consumers worldwide use one, or more fintech platforms as a service as of 2021.
A second report predicts that the global fintech market will reach a value of $324bn by 2026.
The estimate comes from Market Data Forecast which projected that the global financial technology market is expected to grow at a compound annual rate of about 25.18% over the forecast period 2022-2027.
The report said: "Fintech or financial technology is a novel advancement that is gaining prominence across the globe by replacing traditional financial services in various sectors, such as payments, electronic commerce, banking, social commerce, wealth management and others.
As e-commerce is spreading rapidly around the world, it succeeds the key application segment of the Fintech market, which is expected to grow with a superlative annual growth rate of about 12% until 2026.
With a large number of mobile users who have a penchant for online transactions, coupled with the fact that the implementation of Fintech significantly improves the customer experience by providing convenience in payments and delivery in e-commerce, the global Fintech market demand will experience incredible growth in the future."
To find out more about Railsr and its world leading embedded finance experiences platform, take a look https://www.railsr.com/start-your-experience.