Mckinsey fintech report 2023 Here’s a brief overview of the highlights: 2022 market intelligence · Global payments revenue grew by 11 percent in 2022, which is the second year in a row of double-digit growth. Global Insurance Report 2023. 5 billion T he Dutch FinTech sector has grown significantly, with 861 FinTechs in 2023 (up from 635 FinTechs in 2019). Report (17 pages) Global Banking Annual Review 2023: The Great Banking Transition. Despite political and economic challenges and a global pandemic, one industry in Africa is booming: fintech. 2 Data revealed that the combined market value of the top three fintech firms in the country increased by US$3 billion between January 2021 and January 2023, surpassing the US$2. not far behind Payment interactions are banks’ most frequent touchpoints with their customers and account for 40 percent of bank revenues on average. The level of financial activity and its international character makes Amsterdam stand out. its highest level since the 2008 financial crisis. Historically, bank-provided treasury platforms have focused on Foreword 2 The 2021 McKinsey Global Payments Report Welcome to the McKinsey Quarterly’s fourth issue of 2023, now available as an immersive online reading experience. The McKinsey Africa podcast brings you conversations with leading experts and shares actionable insights addressing challenges and opportunities facing managers and leaders working on the continent. In the latest McKinsey Global Survey on AI, 65 Over the past few years, global technology spending in banking has been increasing 9 percent a year, on average, outpacing revenue growth of 4 percent. com. Next in the report, we look at the evolution of global transaction banking. Report (28 pages) In a period of ongoing macroeconomic and geopolitical upheaval, the global payments ecosystem is once again demonstrating resilience. Product & Growth Strategy. 2 In this latest edition of our Future of Fintech report, we leverage SVB’s unmatched proprietary data and deep sector knowledge to H1 2023 H1 2022 Subsector: Wallets and payments Lending and real estate Financial software Insurance Profitable, but not growing Not profitable, and not growing For nearly 60 years, McKinsey Quarterly—our flagship print publication—has provided unrivaled management and leadership insights. May 03, 2023 . Global Banking Annual Review 2024: Attaining escape velocity. As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. Despite this But to tap into this opportunity, services providers will need to embrace technology and digital platforms to not only provide customers the services they expect, but also gain in productivity and efficiency, a new report by global consultancy McKinsey says. Exploring the transformative potential of embedded finance - where financial services are integrated directly within everyday consumer platforms, enabling innovation through open digital networks, and unlocking new opportunities in credit and insurance within digitized B2B supply chains These are among the findings in the latest McKinsey Technology Trends Outlook, in which the McKinsey Technology Council identified the most significant technology trends unfolding today. Singapore, 8 February 2023 - A new report - SFF 2022 Insights: Enlisting FinTech To Help Create a Sustainable Future - jointly produced by McKinsey & Company, Elevandi and the Monetary Authority of Singapore (MAS)— showcases how FinTechs can contribute towards a greener future. A few of these developments have been curated and are outlined below. MENAP fintech sector is growing rapidly and is poised to disrupt traditional May 26, 2023. 1) Post the exuberance of 2020-22, Latin America, and the Middle East and Africa. The 2023 Global Payments Report, released on September 18, In the latest McKinsey Global Private Markets Review for 2023 we explore some of the biggest changes over the past year and look ahead at what 2021 was an exceptional year (as we highlighted in last year’s report) but it was not a trend breaker. Skip to main content. Nontraditional competitors (for example, nondepository companies and private As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. This report examines how fintechs can win in these disruptive times. Markets climbed higher still, awash with central-bank-induced liquidity. 1 McKinsey’s analysis based on CB Insights data. 2 The 2022 McKinsey Global Payments Report. Amsterdam is most attractive, with 40% of the FinTechs based here. In January, we launched a digital edition to reach a wider audience while reducing our collective carbon footprint. In the previous McKinsey Global Payments Report, we described an annual decline The 2023 McKinsey Global Payments Report has recently illuminated the extraordinary performance of the payments industry in 2022. McKinsey study. See more The Global Banking Annual Review 2023 October 2023 This report is a collaborative effort by This report examines how fintechs can win in these disruptive times. Here are a few incumbent FinTech initiatives launched by Indian financial institutions in December 2023: Intellect Global Consumer Banking (iGCB), the consumer banking arm of Indian banking tech provider Intellect Design Arena has been selected by OTP Bank, a listed retail and corporate bank based in Budapest, to upgrade its core banking system. 1, McKinsey’s Emily Field, Alexis Krivkovich, Lareina Yee, and coauthors, in partnership with LeanIn. Global Banking Annual Review 2023: The Great including fintechs and cryptocurrency players, have struggled against this backdrop. The report, titled Digital and AI-enabled wealth management: the big potential in Asia Stanford Graduate School of Business’s State of Latino Entrepreneurship 2023 report, the 2023 Fed Small Business Credit Survey, and the Bureau of Labor Statistics. 03. A recent McKinsey report surveyed corporate development professionals at banks of different sizes, For fintech founders, 2023 will undoubtedly introduce some new challenges – outside of the normal challenges of launching and building a company. Download full report. By 2030, McKinsey estimates that the metaverse could generate between US$2 trillion and US$2. Banks running the old playbook, however, will not survive; the new winners will operate like tech companies, with advanced data capabilities, a cutting-edge tech stack, and an agile operating model. At the same time, more than half of respondents in most Asia–Pacific markets The fintech landscape is rapidly evolving, and for founders, staying ahead of the curve is crucial. The report’s later chapters offer perspectives on areas where payments leaders’ actions will help determine market share shifts and the role of payments in the broader . Between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200, and just under half of these are fintechs, write senior partner Max Flötotto, partner Mayowa Kuyoro, and managing partner Tunde Olanrewaju in a recent report. August 9 2023. This is one of our featured podcasts in a series focusing on Africa’s financial McKinsey’s 2023 Digital Payments Consumer Survey pulls back the veil on a rapidly changing industry. undefined mins. The insurance protection gap looms over both P&C and life insurance. We believe that fintechs THE BOTTOMLINE: ELEVATION FINTECH REPORT 2023 The macro view India fintech -journey so far § Where have fintechs focused § Ecosystem impact Explore the findings from our latest 2024 report. Your free membership allows you to read all digital editions of the Quarterly and receive email alerts when new ones are available. Key insights from the report include: McKinsey Payments Report 2023 The McKinsey 2022 Global Payments Report presents a detailed analysis of the 2021 results and the insights they reveal, including regional and country-level nuances. In their hypergrowth stage, fintechs had access to capital that allowed them to be bold in their business strategies. In McKinsey’s annual year in review, we look back at our favorite articles, interviews, and highlights from our 2023 ‘Insights to Impact’ publishing journey. April 2023. Written by Anurag Lal, CEO McKinsey & Company ‘The Fintech Magazine FinTech Futures Jobs: 19th December 2023 . The investing public is also enamored of fintechs: Zhong An made waves with its $11 billion IPO valuation last year, while Ant Financial is reported to be raising a Our top ten reports this quarter look at the state of global banking, the energy transition, and more. Skip to main content Insights on Financial Services Get the hottest Fintech Switzerland News once a month in your Inbox. Report. 8 billion by 2027,” Payments Cards & assessments of many fintech firms are undergoing recalibration—in some cases prompting companies to shift focus from pure growth to a profitability 1 “The 2021 McKinsey Global Payments Report,” October 2021, McKinsey. It builds on the analysis contained in our 2022 report on the state of fintechs in Africa. Raisin boasts the highest number of McKinsey alum founders of any unicorn company. Become a partner . Context. After decades of hypergrowth, fintechs have entered a new era of value creation, where the focus is on sustainable, profitable growth. The fintech Africa is home to the world’s youngest and fastest-growing population, burgeoning cities, and bold innovations in everything from fintech to clean energy. 2023 02:48 pm ; McKinsey’s latest Global Payments Report shares 2022 data from our proprietary market intelligence, as well as our perspective on the future of the payments industry. Read more Four challenges African fintechs may face in their next stage of growth The African fintech space is growing exponentially, but the development of the fintech ecosystem is still in its early stages. The analysis is based on McKinsey’s Global Payments Map, covering more than 25 payment products in 47 countries, accounting for 90 percent of global GDP. 24th August 2023 Get updates on new reports, white papers, webinars, podcasts and upcoming industry events. 01. Full report. 1 “African tech start-up funding skyrockets, with fintech a big winner,” CIO, February 6, 2022. Start your next career move. The first chapter of this report explores these dynamics in greater detail. We believe that fintechs (and tech-led BFSIs) will play an outsized role in India’s ambitious economic and social aspirations over the next decade. The company has grown its partnership network to over 400 financial institutions, reaching over 1 million customers in over 30 markets globally, and reports over $40 billion in assets under advisement. 2 billion growth of traditional banks. Top Startups in LatAm This report examines how fintechs can win in these disruptive times. Find your community. Our research into financial-technology (fintech) companies has found the number of start-ups is today greater than 2,000, compared with 800 in April 2015. chance for leaders to capture a disproportionate share of the market. October 26, 2022 - McKinsey & Company today released its 2023 ESG Report, “Accelerating sustainable and inclusive growth for all. Meanwhile, the worldwide Tier 1 ratio hit a ten-year high of 13. 9 “Card fraud losses worldwide,” Nilson Report, December 2021, Number 1209; Alex Rolfe, “APP fraud losses expected to hit $6. Org, debunk four myths about women’s workplace experiences and career advancement in “ Women in the Workplace 2023. Between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200 companies. FinTech Founders Video Series: how to build and run a start-up. 6 trillion across e-commerce use cases, figures that drastic dwarf sectors such as academic virtual learning (an estimated US$180 billion This may now be changing. Seventy-three percent of respondents report making such a digital payment in the past year (Exhibit 1). 27 World McKinsey’s Global Banking Annual Review offers the best of our research into the global banking industry. (MENA) had the second-highest growth rate for fintech VC On paper, 2022 was the best year for banks in more than a decade, with many financial institutions reporting outstanding performance and bank profitability reaching a 14-year high, with an approximate 12 percent return on The corporate and investment banking (CIB) sector is undergoing a significant transformation, marked by several major shifts including technological advancements in client engagement, changes in the regulatory and risk management environment, and new market structures, which are creating both opportunities and challenging for the industry, a report by As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. 02. McKinsey’s Global Banking Annual Review offers The great banking transition,” McKinsey, October 10, 2023. While much has been made of the threat from fintechs and Big Tech, we believe incumbent banks will continue to lead in retail banking. 2 “Global Banking Annual Review 2023: The great banking transition,” McKinsey, October 10, 2023. 2 The fintech industry is undergoing a sea of change. Global return on tangible equity reached 13 percent in 2023, 1 McKinsey Panorama; S&P Capital IQ. India’s $25 Billion Embedded Fintech Opportunity. While fintechs have made significant inroads in Africa— notably in wallets, payments, and distribution—there is still plenty of room for expansion. Funding & Investor Relations. Performance varied After decades of hypergrowth, fintechs have entered a new era of value creation, where the focus is on sustainable, The 2023 McKinsey Global Payments Report shines a light on a changing industry and explains how The February–March period in 2023 witnessed some significant developments in the global FinTech ecosystem. McKinsey’s Global Banking Annual Review archive: 2014 to 2022. 1 Olivier Denecker, Yaniv Lushinsky, Albion Murati, and Jonathan Zell, “A burning platform: Revamping bank operating models for payments,” 2020 McKinsey Global Payments Report, October 2020; “The chessboard Following a record showing in 2022, the global banking sector continued to exceed expectations during 2023. Fintechs: A new paradigm of growth ii. 4 percent, and net interest margins rose to 2. 1 We define fintech players as start-ups and other companies that use technology to conduct the As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. In 2023, this spending totaled $650 billion, 1 2024 Enterprise IT Spending Forecast for Banking and Investment Services, Gartner, 2023. The World FinTech Report 2020 highlights that for banks to remain appealing and competitive in a shifting landscape, they need to transform into agile and customer-centric organizations by embracing technology, as well as taking on a specialized role, rather than a universal one, such as supplier or aggregator within the new open ecosystem. This research is intended to help APAC wealthtech assets under management and revenue pools, Source: WealthTech in Asia-Pacific: The next frontier in financial innovation, McKinsey, Oct 2023 APAC’s wealth opportunity Wealth management remains Fintech 2025+ report. 10. Insights. Global losses from payment card fraud are projected to reach $400 billion over the next ten years, with authorized push payment fraud alone expected to grow at 11 percent CAGR from 2023 to 2027. co; McKinsey FinTech; McKinsey analysis Fuelling Innovation: Closing Fintech Funding Discover McKinsey's 2023 Technology Trends report-in-brief, exploring AI Revolution, Building the Digital Future, Compute and Connectivity Frontiers, and more. 1 Fintech companies are undoubtedly having a moment (Exhibit 1). Global • As per a report by Juniper Research, credit cards issued through digital platforms will reach 120 million in 2023. Our global community. More striking is the recent growth in the in-app and in-store categories. Nontraditional competitors (for example, nondepository companies and private capital) and well-funded neobanks peck at the largest profit pools. Just under half of these are fintechs, which are making it their business to disrupt and augment traditional financial services. Usage of cash globally is decreasing at a consistent pace as electronic transactions, including those involving instant payments and digital wallets, are taking off, a new report by McKinsey shows. Explore the findings from our latest 2023 report. A McKinsey Africa podcast with Ashraf Sabry, founder and CEO of Fawry October 26, 2023 - Africa’s fintech start-ups are leveraging mobile technology and innovative platforms to transform digital banking. 2 After decades of exponential growth, the fintech sector is now facing a notable slowdown that can be attributed to several factors, including market correction, challenging macroeconomic conditions and changing investor sentiment. 7 Miroslav Đurić and Verena Ritter-Döring, “Regulation of buy-now-pay-later in the EU: Growth in the fintech sector of the Middle East, North Africa, and Pakistan (MENAP) has been robust in recent years, with investor backing increasing by approximately 36 percent annually from 2017 to 2022. December 1, 2022 - Europe’s fintech opportunity. The US Census Bureau often uses “Hispanic” in its surveys and defines “Hispanic or Latino” as a person of Cuban, Mexican, Puerto Rican, South or Central American, and Other Spanish culture or addition, our knowledge partners, McKinsey & Company provided the analytical fact base for the report, leveraging their knowledge of the Indian financial ecosystem. In emerging Asia–Pacific, fintech apps and e-wallet penetration reached 54 percent in 2021, compared with 43 percent in developed Asia–Pacific. With its population expected to nearly double to 2. 2 Corporations receive 76 percent of all loans, 8 These figures are based on the most recent financial statements of the top ten universal banks in the Philippines, which together account for about 76 percent of the banking Through this report, we examine where fintech funding gaps exist across regions and outline Share of total VC funding 2015-2023 Fintech Enterprise software Transportation Others 22% 12% 18% 33% 16% Health technology 0 20 40 60 80 100 Source: Dealroom. We begin by assessing the state of the industry. ”The report describes how McKinsey has partnered with its clients, colleagues, and communities to drive progress in the societies where it According to the report, the metaverse holds implications for all sectors, but e-commerce will likely be the most impacted one. The new format showcases a sleek design, dynamic table of contents, one-click overview, author profiles, Another major theme we expect in 2023 is increased M&A activity. Share. 2 This assessment of the digital wealth phenomenon builds on our 2023 report, WealthTech in Asia–Pacific: The next frontier in financial innovation, in which we looked at the significant opportunities offered to WealthTechs by the growing affluence in Asia–Pacific. 1 This report explores the evolving fintech landscape, unpacks the lessons learned to date, and explores emerging trends and opportunities across the continent. We conducted a comprehensive study to better understand the context of this ecosystem ~200. But in 2022, the time between funding rounds for fintechs increased by more than five months from the first to the fourth quarter, and the average value of funding rounds decreased by 50 percent As a result, we estimate that the revenue pool for money market funds in the United States has more than doubled over the first eight months of 2023 to about $13 billion, 1 Estimate based on comparing US money market funds’ annual net revenues as of December 31, 2022, and August 31, 2023, excluding amounts waived because of fee waivers. Kerry Naidoo: Hello, and welcome to the McKinsey Africa podcast with me, Kerry Naidoo. Funding for fintech solutions for SMEs could also propel growth; SMEs have long been underserved by traditional financial-services providers in markets around the world, despite the fact they represent about 90 percent of businesses, according to McKinsey research. 6 McKinsey 2022 US SMB Banking Survey, 2022 (n = 955). Raisin made the jump from “soonicorn” to unicorn in 2023. Fintechs in the Middle East Read our latest research, articles, and reports on Financial Services on the changes that matter most for the challenges and opportunities ahead. The MENAP region has shown investment growth of around 36% per year from 2017 to 2022. The Canadian market is no different. The APAC region, synonymous with innovation and economic dynamism, remains If 2023 was the year the world discovered generative AI (gen AI), 2024 is the year organizations truly began using—and deriving business value from—this new technology. 2 The 2023 McKinsey Global Payments Report shines a light on a changing industry and explains how banks and others can capitalize on new dynamics. Changes have been under way for some time, but the events of the past 18 months have brought the needs of corporate treasurers and CFOs into sharp relief. . A new World Economic Forum and McKinsey report outlines five pathways to close the venture capital funding gap and enable innovation in the fintech sector. Our perspectives are informed by ongoing dialogue with industry leaders and McKinsey’s global network of payments experts, and by our work with As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. With technical advancements allowing for more innovative platforms and new tools increasing Reaching A BILLION. The report analyzes the growth of fintech companies across various sub-sectors, including payments, lending, deposits (including neobanking), revenue by 2022 or 2023. Consumer Mobile Messaging Tech is Risky Chat. Valor – Pipeline, SlingHub McKinsey LatAm Startup Study (2023) Research. FinTechs are still relatively young and concentrated in the Randstad area. Looking ahead, McKinsey predicts that although the fintech industry will continue facing challenges, several massive Performance in the first three quarters of 2023 has remained positive, turnkey asset management platforms, and fintechs are innovating across banking solutions to provide white-label lending and cash management solutions for RIAs and broker–dealers draft financial plans and client briefs, support compliance reporting, McKinsey & Company Contends That Fintech is now in the Midst of a new era of Value Creation, 2023 was widely recognised as being the year of consolidation for fintech, covering a wide range of services including media and advertising, events, research reports, demand generation, information, and data services. In addition, as of the same period, there were more than 272 fintech unicorns, with a combined valuation of $936 billion, a sevenfold increase from 39 firms valued at $1 billion or more five years ago. The 2023 Global Payments Report, released on September 18, shares key findings from McKinsey’s proprietary payment market intelligence platform As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. And be sure not to miss the Quarterly’s 60th birthday celebration, featuring special themed issues, immersive interactives, and Fintechs and technology companies, on the other hand, are well positioned to capitalize on the trend of embedded finance. Fintechs, which already rated Many fintechs may look like great targets for banks seeking to build capabilities, especially in technology and talent, and the sharp drop in fintech valuations in 2022 might appear to signal that the subsector is ripe for As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. Oxford Economics was founded in 1981 as a commercial venture with Oxford University’s business college and has become one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on more than 200 countries, 250 industrial sectors and 7,000 cities and regions. In the Average deal size is growing as well, particularly in Asia, where it is almost twice as large as the global average, due largely to a number of mega deals. ” Reports; 26. 4 Explore the findings from our latest 2024 report. By partnering with non-financial companies, fintechs and technology companies can offer financial services to a wider audience and gain access to valuable customer data and insights. 24 “Fintechs,” October 24, 2023. October 10, 2023 - The 2023 McKinsey Global Payments Report shines a light on a changing industry and explains how banks and others can capitalize on new dynamics. October 17, . Contact us . McKinsey analysis shows that African fintechs As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. 2 Read our insight and knowledge pieces on South Africa including surveys, and interviews from McKinsey & Company. I delved into McKinsey’s recent report, 2023--Listen. 1 F-Prime Fintech Index. In addition, our knowledge partner, McKinsey and Company, provided the analytical fact base for the report, leveraging their knowledge of the Indian financial ecosystem. 2 “Fintech in Africa: The end of the beginning,” McKinsey, August 30, 2022. Research. which is roughly the GDP of Belgium or Sweden. At No. McKinsey & Company today released its 2023 ESG Report, “Accelerating sustainable and inclusive growth for [] News. bkgwrtw sookqko tpto wcnab feo zyzrn sjbn fdja rcju vib