As per a very recent article by the Research & Markets, the financial services market reached a value of nearly $23,328.73 billion in 2021, having grown at a compound annual growth rate (CAGR) of 3.5% since 2016. The market is expected to grow from $23,328.73 billion in 2021 to $33,313.50 billion in 2026 at a rate of 7.4%. The market is then expected to grow at a CAGR of 6.3% from 2026 and reach $45,149.00 billion in 2031.

We all know data doesn’t lie ; and it’s not a mere surprise now with the invent of several FinTech and financial based companies like Paytm and many others in India as well as in abroad, the world of finance is on the brink of a profound transformation, driven by technological advancements and emerging trends. As we look ahead, it is essential to explore the potential changes through a mathematically calculated lens in order to get a very clear view of what to see, experience and may be learn in the next 5-10 years of our lives. In this blog post, we will delve into the mathematical statistics and data that shed light on the future of finance and its transformative impact on the world. After all, we must all know and listen to these words – we know they make much more and more sense as we grow up.

The secret of getting ahead is getting started. The secret to getting started is breaking your complex overwhelming tasks into small manageable tasks and then starting on the first one.

Mark Twain
an image containing a series of upward increasing arrows defining the increase of the tern finance and its rising influence on the world
an image containing a series of upward increasing arrows defining the increase of the tern finance and its rising influence on the world

Why Finance Is Going To Be The Next Big Thing?

I am so glad you asked that. Lets start and prepare to get your mind dazzled to these amazing facts and data as per recent surveys and I am pretty sure, by the time you have read this completely, you should have made your decision to engage your curious sprits even more on to the business of building and creating even more way to earn more money and as a result, secure your future.

(a)Technological Advancements

(i) Compound Annual Growth Rate (CAGR) of Fintech –

The global fintech market is projected to grow at a staggering CAGR of 23.58% from 2021 to 2026, reaching a market value of $305.7 billion by the end of the forecast period. This exponential growth highlights the significant role of technology in shaping the future of finance.

(ii) Adoption of Artificial Intelligence (AI)

The AI market in finance is also expected to witness around exponential growth in the few years to come. According to a report by Allied Market Research, the global AI in finance market is predicted to reach $26.67 billion by 2027, growing at a CAGR of 23.1% from 2020 to 2027. AI-powered solutions are revolutionizing various aspects of finance, including risk management, fraud detection, and investment strategies.

an infographic showing the rise of artificial intelligence and its use in the world of finance and its most exciting future.
an infographic stating how Artificial intelligence (AI) and ai tools are rising in connection with a world which is the future of finance.

(b) Rise of Cryptocurrencies and Blockchain Technology

(i) Market Capitalization of Cryptocurrencies –

The market capitalization of cryptocurrencies has experienced remarkable growth in the last few years. As per a report by the Statista, as of June 14, 2023, the total market capitalization of cryptocurrencies stood at around $1.18Billlion USD, with Bitcoin dominating the market share. This exponential growth reflects the increasing adoption and recognition of cryptocurrencies as an alternative and in some cases (if not all) , a more convenient and better as well as a fraud-free form of digital currency. Not investing in cryptos still yet ? Well check out this link to start investing as soon as possible.

(ii) Blockchain Technology Integration –

The integration of blockchain technology in various industries, including finance, is gaining humongous momentum with every passing year. As per a report by Fortune Business Insights, ‘the global blockchain technology market size is projected to reach USD 469.49 billion in 2030, at a CAGR of 59.9% during the forecast period, 2023-2030‘. As you can properly guess by now, this disruptive technology has the potential to streamline financial transactions, enhance security, and reduce costs all across the globe. Interested in knowing more about blockchain technology? Check out this link to read about this amazing article about blockchain case study by Google.

an image showing the distinctions between stocks and cryptocurrency and how cpytos are the only way to the future of finance

(c) Financial Inclusion and Digital Payments

(i) Global Mobile Payment Users

The number of global mobile payment users is forecasted to reach 1.3 billion by 2023, indicating a significant shift towards digital payment solutions. This growth is fueled by the increasing penetration of smartphones, the convenience of mobile payments, and the expansion of digital payment infrastructure. Surely, the UPI wave in Indian subcontinent is a living proof the humongous success of mobile payments, especially in the youth age range between 25-45 years of age.

an infographic showing how mobile banking and digital payments are the future of finance
(ii) Financial Inclusion Efforts

As per this article by Wikipedia, ‘Financial inclusion is defined as the availability and equality of opportunities to access financial services‘. Access to financial services remains a critical challenge in many parts of the world. However, the future looks promising as financial inclusion efforts is gaining traction with every passing year. According to this study by the World Bank, as of 2017, 69% of adults worldwide had access to a bank account, and between 2014 and 2017, rise in the share of account owners sending or receiving payments digitally from 67 percent to 76 percent globally, and in the developing world from 57 percent to 70 percent, showcasing huge progress in expanding financial services and digital financial literacy to the unbanked population.

(d) Data Analytics and Predictive Modeling

(i) Big Data and Analytics Market Growth

As per this report by the Forbes Business Insights, ‘The global big data analytics market size was valued at $271.83 billion in 2022 & is projected to grow from $307.52 billion in 2023 to $745.15 billion by 2030 exhibiting a CAG of 13.5% during the forecast period. The ability to collect, analyze, and derive insights from vast amounts of data is empowering financial institutions to make data-driven fast and effective decisions resulting in improved risk management, and thus enhancing customer experiences. Want to know more about big data analytics ? Read here.

(ii) Predictive Modeling in Finance

As per this page of Wikipedia, it defines ‘Predictive modelling as the process which uses statistics to predict outcomes.’ Predictive modeling, fueled by advancements in machine learning algorithms, enables financial institutions to forecast market trends, detect anomalies, and make accurate predictions. These models leverage historical data, market indicators, and economic factors to anticipate market movements, assess risks, and optimize investment strategies.

an infographic showing the process of data analytics step by step and how it is impacting the world of finance

The Future – FINANCE

As we all can learn and see through this article itself, the future of finance is poised for remarkable transformation, driven by upheaving technological advancements and super-effective data-driven approaches. I must say that the mathematical statistics and data presented here only offer a glimpse into this future. From the exponential growth of the fintech industry to the adoption of AI, the rise of cryptocurrencies and blockchain technology, the expansion of financial inclusion efforts, and the increasing utilization of data analytics and predictive modeling, mathematics underscores the potential for a revolution in the world of finance.

By embracing these changes, individuals, businesses, and economies can unlock new opportunities, drive innovation, and shape a brighter financial future. But first as individuals, we must be well insured, both in health and other aspects, and then we shall step on to this journey of exploring this brand new world where finance will mean that one word which resonates with the future itself – opportunity! Come, lets explore the future world with eyes full of ambitions and dreams , hold each other hands full of hopes and get on this journey of unlocking financial freedom together!

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That’s all folks! see you next time! Until then, keep reading, keep loving and of course – you know it- keep following www.financenfuture.com


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