In this report, we have leveraged lessons from industries already experiencing Digitization, predicting shrinking traditional revenue pools and a value shift to digital channels resulting from Roboadvice and Blockchain. We also share a proprietary unifying framework to understand and parse our covered Fintech themes, which include roboadvice, blockchain, artificial intelligence, chatbots, neobanks, insurtech and virtual reality, addressing $6.5 trillion of financial sector revenue.

Key Findings 

  • The investment management industry could experience a $44 billion headwind from regulation and pricing pressure. However, digital wealth management will grow to revenue pools of $1 billion by 2020 and $4.5 billion by 2030.

  • As a result of distributed ledgers, revenues across cross-border payments, capital markets and title insurance are projected to decrease by $200 billion.  However, adopters will be able to capture blockchain-related revenues of $6 and $20 billion by 2020 and 2030 respectively.

  • Overall, $6.5 trillion of global financial services revenues will be exposed to digitization, a trend funded by nearly $18 billion of private investment in 2016.

Table of Contents

About Autonomous Research

Autonomous NEXT Framework

  • The story of digitization is not new
  • Other industries have already been disrupted and reimagined
  • Fintech is a symptom of a secular, permanent shift
  • Quantitative comparisons to revenue pool changes in music, media and retail
  • Qualitative assessments of Fintech themes along maturity curve

Autonomous NEXT framework for understanding digitization

Roboadvisors and Digital Wealth Management

  • General market dynamics, including industry sizing for wealth and investment management
  • Overview of history of innovation, and the 4th stage of Digital Wealth Management
  • Industry map segmenting roboadvisor companies by B2B, B2C and B2B2C, including insitutional backers
  • Venture capital funding into the space by total funding and number of deals
  • Impact on industry and pricing for asset management product and technology
  • Revenue opportunity for incumbents and startups

Sizing of Investment Management market

Distributed Ledgers and Cryptocurrency

  • Overview of the evolution of cryptocurrency technology from digital value to world computer
  • Sizing of impacted B2C and B2B Global Payments,  Capital Markets and Title Insurance revenue pools
  • Industry map segmenting companies across public and private blockchains, including links through consortia and industry
  • Venture capital funding for blockchain and bitcoin companies
  • Overview of Initial Coin Offerings on public blockchains and potential for growth
  • Quantified industry impact on B2C and B2B Global Payments, Capital Markets and Title Insurance
  • Revenue opportunity for incumbents and startups

Venture capital funding for companies involved in blockchain and bitcoin

Research Path

  • Our fintech research plan is to assess impact of each core theme across industries, addressing over $6 trillion of revenue

Research path for understanding and quantifying all components of Fintech

Engage with Autonomous

Financial service companies are transitioning from human driven revenue models to information technology driven revenue models. As part of our ongoing focus on this transition, and the core technology themes being expressed in finance, we have established Autonomous NEXT. The products and services are designed specifically for financial firms looking for strategic insight into the pace and path of the core themes shaping the financial services ecosystem.

Our services are suitable only for professional investors. You may purchase this analysis individually, or engage with us more deeply by contacting us here.