Fintech innovation set to play huge role in cloud computing market, study finds
Cloud computing revenue in the Asia Pacific region will be significantly bolstered by fintech (financial technology) innovation, according to GlobalData.
According to the analysts, enterprises in the banking, financial services and insurance (BFSI) sector are increasingly adopting cloud-based solutions to minimise risk, maximise output and offer innovative service delivery methodologies to customers.
As a result, the cloud computing market in Asia-Pacific is estimated to grow at a compound annual growth rate (CAGR) of 7.7% to reach US$191.8bn in 2024.
GlobalData technology analyst Anshuma Singh says, “As enterprises in the financial sector continue to embrace digitalisation, they are increasingly emphasising on leveraging and integrating advanced technologies and business models to disrupt financial services offering capabilities across the region.”
An analysis of GlobalData’s Market Opportunity Forecasts Model reveals that cloud revenue in the BFSI sector will grow at a CAGR of 8.2% during 2019-2024 to reach US$27.8 billion in 2024.
Of the region, Indonesia, South Korea, Japan, Singapore, Australia and New Zealand will witness the highest CAGRs during the forecast period.
China and India are home to the early adopters of fintech in the region. Strong growth in the fintech investment by the emerging countries including China, Japan, Australia, South Korea and India will boost the revenue contribution of the BFSI sector in the Asia-Pacific cloud computing market, the analysts state.
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