5G In Fintech Market Size, Share, Opportunities, And Trends By Application (Branch (Banker-Facing, Customer-Facing), ATM, Others), By Component (Hardware, Software, Services), And By Geography - Forecasts From 2024 To 2029

The 5G in fintech market is anticipated to expand at a CAGR of 44.53% to attain US$122.470 billion by 2029, from US$19.418 billion in 2024.

5G, or the fifth-generation technology for cellular networks, is the latest development in the cellular network industry. It offers a higher internet speed, with greater uploading and downloading speeds than previous generations. The 5G technology also offers improved network capacity and consistent network connections. It offers multiple benefits, like reduced latency in network connection and a uniform user experience. In the fintech sector, 5G can offer many critical applications.

Data plays a critical role in fintech, or the financial technology industry, generating huge amounts of data every passing movement. The reliable connectivity and higher connectivity speed of the 5G technology enable the fintech industry in real-time data collection, analysis, and transfer. The application of 5G in fintech also enables multiple companies and organizations to implement various new technologies, like artificial intelligence (AI) and data analytics, for efficient and faster data collection and analysis. Using 5G in the fintech sector also helps in improving and optimizing user experience, as it reduces waiting time and enhances faster services for users.

The increasing global risk of cybersecurity and data breaches is forecasted to be a major restraint to the global 5G in the fintech market. The world has witnessed an increasing number of breaches and cyberattacks, forcing data-driven industries, like the fintech sector, to invest large amounts in securing their data.

5G In Fintech Market Drivers:

• Bolstering growth in digital banking and fintech investments is stimulating market expansion.

The high speed and receptivity capability of the 5G technology is estimated to improve the overall database checking and its high potential to accelerate the network coverage. The 5G technology also has high industrial applicability, and its usage in the fintech sector is not different. This technology provides high-performance benefits such as streamlining lending, securing transaction channels, enhancing fraud detection, reducing latency, and offering AI and VR for customer offerings.

The rapid evolution of the fintech sector globally will bolster contactless transactions, account opening, and mortgages, driving the demand for high-speed network connectivity. This can provide a real-time user experience, making 5G technology an ideal option for the industry. Similarly, rapid urbanization has also fastened the transition towards a modern and digital banking approach, enhancing the scale of online and mobile banking transitions globally. For instance, according to GSM’s “The State of the Industry Report on Mobile Economy 2024”, the registered mobile active account in 2023 reached up to 1.73 billion, signifying a 12% YoY growth. In the same year, the strength of active mobile money accounts stood at 435 million, which represented a 9% growth.

Fintech companies are aiming to optimize the growing digital environment opportunity, which has led to various investment implementations in the sector. For instance, according to the Reserve Bank Innovation Hub’s “Financial Service & Fintech” Volume 1, between FY2019 and FY2023, the fintech investments by the PE-VC investors stood at US$21 billion for the Indian fintech companies. The same sources further stated that as of March 2023, lending tech and payment companies accounted for 43.1% and 25.6%, respectively, of fintech investments.

5G In Fintech Market Restraints:

• Increasing cyber-attacks and data breaches

The increase in global cyber attacks and record breaches across all major industries is forecasted to slow the 5G in the fintech market’s growth. With the increasing global cyber-attack cases and data breaches, companies or organizations, especially in the banking and financial sectors, have to invest heavily in data security, making it harder for such companies to switch from their existing connections to newer technologies.

IT Governance UK recorded about 29.552 billion data breaches in January 2024, which grew massively from 2.306 billion data breaches recorded in December 2023. The organization also stated that in March 2024, 3,465 publicly disclosed security incidents were reported, which was previously recorded at 713 incidents in February 2024. The agency also stated that in January 2024, the total number of known record breaches in the USA was 78.215 million, of which 32.373 records were breached in the financial sector, followed by 19.332 million in the IT service and software sector.

5G in Fintech Market Geographical Outlook

• Asia Pacific is forecasted to hold a major share of the 5G In Fintech Market.

The Asian Pacific region is estimated to attain a greater share in the global 5G fintech market. One of the major driving factors pushing the growth of the regional 5G in the fintech sector can be the continuous expansion of 5G technology and increasing development in the fintech sectors. Various countries in the region, like India, Japan, China, and Singapore, have a large and developed financial sector worldwide, with many countries in the region also adopting and developing new fintech solutions to expand their financial landscape. Technologies like the UPI (Unified Payments Interface), developed by India, have witnessed massive growth and are further expected to attain higher demand with the adoption of 5G technology nationwide.

The 5G In Fintech Market Products Offered by Key Companies:

• Anthonet is a global private cellular network provider based in Italy. The company offers various products, including 5G core, EPC, IMS, tactical club, tactical backpack, and Athonet Dashboard. The company designs and develops its products for multiple industries, including retail, manufacturing, government, education, and transport & logistics. In June 2022, the company opened its 5G lab, which is dedicated to the fintech sector.

The 5G In Fintech Market Key Developments:

• In April 2024, Ericsson, a global leader in the technological sector, announced a two-year strategic partnership with the Foundation for Innovation & Research in Science & Technology (F.I.R.S.T) at India Institute of Technology (IIT) Kanpur. This partnership aims to drive innovations across emerging technologies to bolster “Mobile Financial Services” and Fintech solutions nationwide. Ericsson also aims to attain a global leadership position in technology and innovation in the financial sector. 
• In June 2023, ZTE Corporation, a multinational corporation that provides IT and communication services, announced that the company is developing exemplary applications, in partnership with China UnionPay Data, China Pacific Insurance, and ZENITERA, for the banking, insurance, and securities industries. ZTE, in collaboration with the CAICT (China Academy of Information and Communications Technology), DAHAN TRICOM, and China Association of Communications Enterprises, also hosted the “5G+AI Empowering Financial Technology Innovation." This event explored the possibility of integrating 5G applications such as 5G messaging and 5G new calling with financial services.

The 5G In Fintech Market is segmented and analyzed as follows:

• By Application
  • Branch
    • Banker-Facing
    • Customer-Facing
  • ATM
  • Others
• By Component
  • Hardware
  • Software
  • Services
• By Geography
  • Americas
    • United States
    • Others
  • Europe, Middle East, and Africa
    • Germany
    • UK
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Others