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 2023 To 2028

The 5G In Fintech Market is expected to grow at a CAGR of 47.33%.

GROWTH DRIVERS

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

5G’s high speed and receptivity improve the overall database checking and its high potential of acting as disruptive technology further accelerates the network coverage. Having high industrial applicability, the usage of 5G technology in the fintech sector is not different where it provides high-performance benefits such as streamlining lending, securing transactions channels, enhancing fraud detection, reducing latency, and offering AI and VR for customer offerings.

The rapid progression of the fintech sector towards digitalization to bolster contactless transactions, account opening, and mortgages is driving the demand for high-speed network speed that would provide a real-time user experience, hence making 5G technology an ideal option. Rapid urbanization has increased the transition towards a modern banking approach where digital options play an integral role. Hence, this has accelerated the scale of online and mobile banking. 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 signified a 12% YoY growth, and 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 India fintech companies. The same sources further stated that as of March 2023, lending tech and payment companies accounted for the major portion of fintech investments accounting for 43.1% and 25.6%.

EMERGING OPPORTUNITIES FOR 5G IN FINTECH MARKET

• HARDWARE, SOFTWARE, AND SERVICES

By component, the 5G in the Fintech market is segmented into hardware, software, and services. The service is expected to account for a considerable share of the market which is attributable to the wide applicability of 5G in digital payments and other lending transactions. The innovative and cost-effective approach provided by 5G is driving innovations in the overall banking outlook and is establishing a new framework where enterprises and private consumers can conduct their transactions without any disruptions.

The ongoing shift towards cashless payment has changed the consumer perspective of digital banking which has further motivated fintech companies to develop innovative products that hold high flexibility and are easy to use by the customers. Various product launches, strategic collaborations, and investments are being taken place which is set to drive the overall segment growth.

For instance,

• In April 2024, Ericsson formed a two-year strategic partnership with India Institute of Technology Kanpur to drive innovation across emerging technologies that would bolster “Mobile Financial Services” and Fintech solutions. The collaboration would further strike Ericsson’s leadership in technology & innovations, and the company has its wallet platform that harbors over 400 million mobile wallets which processes nearly 2.8 billion monthly transactions with a valuation of US$40 billion.
• In February 2024, financial service Tech Mahindra signed a Memorandum of Understanding (MoU) with Pegatron for the development of private end-to-end 5G for enterprise products for manufacturing and global enterprises. The products will be marketed under “Pegatron 5G” and would open new opportunities for implementing edge computing and other modern technologies through 5G.
• In June 2023, ZTE Corporation in collaboration with the CAICT (China Academy of Information and Communications Technology), DAHAN TRICOM, and China Association of Communications Enterprises hosted the “5G+AI Empowering Financial Technology Innovation" which aimed to explore the possibility of integrating 5G applications such as 5G messaging and 5G new calling with financial services. The forum would facilitate in implementation steps to bolster the digitalization of financial services.

GEOGRAPHICAL PRESENCE

Some key developments related to 5G in the Fintech sector across key markets are listed below:

• In August 2022, ZTE Corporation in collaboration with CCB demonstrated its “5i remote banking intelligent customer service” which is based on “5G New Calling”. The product offers a more interactive and innovative service experience through the development of barrier barrier-free platform that enables enterprises in long-range digital service development.
• In June 2022, Athonet established its first “5G Fintech Lab’ in London that would assist financial institutions, banks, and head funds along with their technology partners in the development and integration of 5G technology in their business, products, and operations. The technology would provide a low-latency wireless network secured with SIM-based authentication.
• In May 2022, Investment holding company SoftBank Corp. established its “5G Multi-Access Edge Computing” in Japan which would provide highly secured and low latency services using 5G standalone commercial services. The platform is equipped with features such as application deployment & distribution to physical infrastructure setup.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson, ZTE Corporation, and Broadcom, among others. The product offerings of the major corporation include the following:

Segmentation:

• 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