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The fintech sector is going to experience a sixfold increase in revenues over the next seven years, according to a new report by Boston Consulting Group (BCG) and QED Investors.

The report, “Global Fintech 2023: Reimagining the Future of Finance,” is forecasting a fintech revenue spike from $245 billion to $1.5 trillion by 2030. The report also predicted the fintech sector will expand from its current a 2% share of the $12.5 trillion in global financial services revenue to 7% in 2030, with fintechs constituting nearly one-quarter of all banking valuations worldwide by that time.

The report acknowledged that fintechs on average lost more than half of their market value last year, but the report also predicted this would be a short-term correction which will redirect into a long-success story – especially in the Asia-Pacific region, which is forecast to outpace the North American market during this period.

“The fintech journey is still in its early stages and will continue to revolutionize the financial services industry as we know it,” says Deepak Goyal, BCG managing director and senior partner and co-author of the report. “Customer experience remains poor. More than half the world’s population remains unbanked or underbanked, and technology continues to unlock new use cases in leaps and bounds. All stakeholders must therefore seize the moment. Regulators need to be proactive and lead from the front. Incumbents should partner with fintechs to accelerate their own digital journeys.”