Smart Finance Services Market

Market Overview

The Global Smart Finance Services Market was valued at USD 38.40 million in 2021 and is predicted to reach at USD 50.76 million by 2030, increasing at a CAGR of 3.15% from 2022 to 2030.

The term "financial services" is used to characterise the offerings of financial technology companies. The term "financial technology" refers to the fusion of financial services and technology. Using this connectivity, finance services can be reshaped by making financial activity management simple and smart. It also improves the quality of financial services while also reducing total operational expenses, which results in a broader and more secure financial landscape.

One of the primary drivers expected to drive the worldwide smart financial services market throughout the forecast period is an increase in demand for various IoT-based ATM services, such as installation and management. There is also a growing demand for connected ATMs, which in turn drives up the demand for services like installation and management of smart financial services. Thus, the worldwide smart finance industry is expected to increase over the next few years. Smart ATMs that can be maintained remotely via IoT-connected equipment are also boosting the need for smart finance technologies in the banking sector. Using Intel RealSense video technology and facial recognition, for example, a Russian bank is reducing ATM fraud. As the number of ATMs rises, the market is projected to see a significant increase in opportunities.

Market Dynamics

Global Smart Finance Services Market Drivers

• The Increasing Use of Automation in The Financial Service Sector

Robotic process automation, also known as RPA, is now the tool that is being deployed by the greatest number of businesses to automate routine and consistent processes. Automation, in contrast to artificial intelligence, operates according to a straightforward set of rules (If this Equals then that), which enables it to provide results that can be anticipated. These pre-programmed procedures are able to handle digitization, approval, risk flagging, and other tasks utilizing either structured data (incoming data on interest charts) or unstructured data (forms filled out by hand). A great many of them also integrate learning patterns, which enables them to get better over time as more data is accumulated. RPAs are put to use to carry out a variety of tasks, including the generation of reports and logs, the automation of repetitive processes, and the maintenance of logs.

• A Growing Number of Automated Teller Machine (ATM) Installations

It is anticipated that the increasing number of ATM installations that are taking place all over the world will give a substantial number of opportunities for the market. According to the data provided by the World Bank in 2019, there were 42.6 ATMs worldwide for every 100,000 people. This number is expected to rise to 51.6 ATMs worldwide for every 100,000 people in 2020. In addition, the expanding use of internet of things services for automated teller machines is further fueling the expansion of the market. The increasing integration of next-generation smart ATMs that can be maintained remotely further promotes the demand for Internet of Things services among end-users, which is predicted to further contribute to the growth of the market. For the purpose of preventing fraudulent activity at automated teller machines, for instance, Intel Corporation deployed its Intel RealSense camera technology in the Bank of Russia. This system utilizes facial recognition.

Global Smart Finance Services Market Restraints

• Transactions Relating to Blockchain Technology Are Subject to Stringent Regulations from The Government

It is also important for the government to enact laws and regulations in order to oversee and authorize the widespread adoption of technology, and this is especially true in the financial sector, which serves a sizable customer base. A rapid move to decentralized networks utilizing blockchain technology would almost probably demand regulatory compliance. Centralized systems have engulfed the financial sector for decades, so this transformation will almost certainly be necessary. Every provider of technology is responsible for adhering to data privacy standards, which can differ from nation to country. Several nations, like China, Australia, and Japan, have put in place stringent regulatory structures for the blockchain technology. It is therefore anticipated that regulatory restrictions will stunt the expansion of the global blockchain technology market in the years to come.

Global Smart Finance Services Market Key Future Opportunities

• Widespread Use of ATMs With Contactless and Smart Technology

The global smart finance services market is predicted to develop in the banking and financial institutions segment, due to the widespread deployment of contactless and smart ATMs in bank locations to reduce crowds and lineups. Customers may easily and quickly move money between their bank accounts and the cloud thanks to smart ATMs. As a result of this, as well as the growing trend of digital payment banking, the demand for smart financial services is only set to grow.

Also, continuously evolving modifications noticed in the worldwide banking sector could also offer important revenue-generating opportunities for smart finance services market participants, in future. Increasing government spending on digital infrastructure could also play a significant impact in the growth of the global smart finance services market in the near future. Other variables including accessibility to wired and wireless network connectivity platforms and enhanced network connections could also present revenue-generating opportunities for major market players, in the years ahead. By integrating IoT connectivity solutions throughout the implementation of ATMs, banks are likely to contribute the most to the entire smart finance connectivity industry in the future.

Segmental Analysis

The Global Smart Finance Services Market is divided into different segments according to the End-user and Region (Geography).

By End-user, the Global Smart Finance Services Market is segmented into Bank & Financial Institutions and Independent ATM Deployer. In 2021, the segment that comprised banks and other financial institutions held the biggest market share, accounting for more than 75 percent of the total. The increasing number of intelligent ATMs being installed in bank branches across the world is largely responsible for the expansion of the market. In order to provide their clients with a superior banking experience, banks and other financial institutions are rapidly implementing ATMs that are both intelligent and contactless. In addition, a substantial expansion in the BFSI business, together with the introduction of technologically advanced ATMs in developing countries, contributes further to the growth of the market. The significant expenditures made by the banking sector in the incorporation of internet-based services into ATMs will also contribute to the expansion of the market.

It is anticipated that the market for independent ATM deployers would expand at a considerable compound annual growth rate over the period under consideration. The primary factor that is driving the market is the expanding number of independent ATM deployers all over the world, in conjunction with the expanding number of smart connected ATMs being installed all over the world. Additionally, independent ATM deployers are progressively adopting the management and installation services for smart ATMs, which is further accelerating the market expansion during the forecast period. [Citation needed] [Citation needed] According to the survey, the total number of autonomously deployed ATMs in the United Kingdom has increased by 2.71 percent over the course of the previous few years. This significant increase in the number of independent ATM deployers is further projected to provide lucrative growth opportunities to the market.

By Region or Geography, the Global Smart Finance Services Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Between 2022 and 2030, Asia-Pacific is expected to grow at the quickest rate, exceeding a 3.49 percent compound annual growth rate. In addition to the growing demand for smart ATMs in the BFSI industry, China and India are helping to expand the regional market by implementing smart city programs.

By 2030, North America is expected to account for a sizable chunk of the global market. The U.S. is making a favorable impact on market revenue growth. One of the driving forces for market expansion is the presence of well-established banking institutions and a well-developed IT infrastructure.

Regional Analysis

The Global Smart Finance Services Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

From 2022 to 2030, it is expected that growth in Asia Pacific would occur at the fastest compound annual growth rate, which will be greater than 3.49 percent. China and India are making significant contributions to the expansion of the regional market. This is due to the expanding demand for intelligent ATMs in the banking, financial services, and insurance industry (BFSI), as well as the growing number of smart city initiatives throughout the area.

In addition to this, considerable ATM installations in the region are anticipated to further present the industry with a substantial number of prospects for expansion. According to the data provided by the World Bank, there were approximately 87.8, 21.5, and 124.1 ATMs for every 100,000 people living in China, India, and Japan, respectively. Additionally, an increase in the number of secured internet servers in China, Japan, and India led to an increase in the number of connected devices throughout the area, which in turn encouraged an increase in the demand for intelligent ATMs throughout the region.

It is anticipated that North America will occupy a sizeable portion by the year 2030. The United States is making a valuable contribution to the continued revenue expansion of the market. One of the elements that is fuelling the expansion of the industry is the existence of reputable financial institutions which have been around for a long time and which also have developed IT infrastructure. In addition, the expanded information technology infrastructure in the BFSI sector makes it easier to deploy Internet of Things-based devices in the BFSI sector, such as smart ATMs, which further adds to the expansion of the market.

Additionally, the expansion of the market in the area may be ascribed to developments in Internet of Things (IoT) applications as well as the introduction of a variety of smart gadgets. In addition, a huge amount of money was spent on the advanced infrastructure, and there was a large number of internet servers that were protected from unauthorised access. Both of these factors contributed to the market share.

Recent Developments

May 2022 - Global technology giant Zoho Corporation Pvt. ltd., based in Chennai, revealed on Wednesday that it has invested Rs 20 crore in Genrobotics, an Indian start-up working on robotic solutions to address the most pressing social concerns, such as hazardous workplace conditions.

February 2022 - CoreStack, a worldwide multi-cloud governance solution that enables continuous and autonomous cloud governance at scale for businesses to unleash the power of the cloud, had announced a new collaboration with Virtusa Corporation. Together, the firms will advance CoreStack's NextGen FinOps, SecOps, and CloudOps products and Virtusa's vGovern cloud governance solution in multi-cloud environments.

Smart Finance Services Market Segmentation

By End-User

• Bank & Financial Institutions
• Independent ATM Deployer

By Region

• North America
• Europe
• Asia Pacific (APAC)
• Latin America
• Middle East and Africa (MEA)