Fintech to Become a $1.5 Trillion Market in 2030 - BCG

 Global financial technology (fintech) revenues will grow from $245 billion in 2022 to $1.5 trillion by 2030 (600 percent), according to a 2023 report by Boston Consulting Group (BCG). In 2022, fintech controlled 2 percent of the $12.5 trillion global financial services market. BCG sees this growing to 7 percent by 2030.

Fintechs have grown rapidly worldwide as digital infrastructure becomes more commonplace. Millions of people now send and receive money, make payments, and bank through their smartphones. Unfortunately, millions of people around the world remain unbanked, especially in developing regions. BCG expects these groups to power the coming wave of fintech adoption.

In Asia Pacific, for example, BCG projects the fintech market will grow at an annual compound rate of 27 percent, driven by adoption in countries such as China, India, and Indonesia. These countries have large, underbanked populations, many small businesses, and a rising tech-savvy middle class.

Growth in Latin America and Africa will also be remarkable. BCG expects fintech to grow at a compound annual rate of 29 percent in Latin America and 32 percent in Africa. Countries leading this growth will include Brazil, Mexico, Nigeria, South Africa, Egypt, and Kenya.

The United States fintech market will grow at a compound annual rate of 17 percent to reach $520 billion by the end of the decade. It will be the second-biggest fintech market globally, behind the Asia Pacific region.

The Life Cycle of a Gold Mine

 

Gold mining is a time- and resource-intensive process. Here is a breakdown of the life cycle of a gold mine:

1. Gold exploration. Companies must first explore for gold in vast fields of land to discover the ones with viable gold deposits. This is an elaborate process that can take up to 10 years. Explorers rely on experts from fields such as geology, geography, engineering, and chemistry to explore for gold. They use processes such as soil sampling and aeromagnetic surveys to test whether a site has gold. If it does, they do further analysis to determine whether gold mining on the site is economically viable.

2. Development of a gold mine. This can take one to five years. Miners have to secure resources for developing the mine, plan its construction, and obtain licenses and permits. For the actual construction, they have to construct the mine and supporting infrastructure like roads and power stations. Often, miners also have to build community welfare resources for workers.

3. Gold mining. Once a mine is complete, miners can mine for gold. The process involves extracting ore from the ground and applying industrial processes to transform it into a metallic alloy called a drone with 60-90 percent gold. Miners then give the dore to refiners, who refine it into gold bars of up to 99.99 percent purity. Gold mines operate for 10 to 30 years.

4. Gold mine closure. When a mine’s ore is exhausted, or the remaining ore is no longer economically viable to extract, miners will decommission the plant and dismantle the mining infrastructure. Afterward, they will take steps to rehabilitate the land by planting vegetation and detoxifying ponds. This takes one to five years.

Investment Opportunities in Precious Metals Mining

 Precious metals such as silver, gold, and platinum have long been essential resources with significant impacts on the global economy. Their rarity and diverse applications make them valuable assets, rendering the precious metals mining industry highly attractive to investors. Within this sector, there exist several opportunities for investment worth exploring.

One of the primary investment opportunities within the precious metals mining industry is investing in mining stocks. This option appeals to investors seeking to capitalize on the sector’s potential growth. Mining stocks represent ownership in companies engaged in various aspects of the mining process, spanning exploration, extraction, and processing. By investing in these companies, individuals can potentially reap substantial returns, particularly during periods of rising precious metal prices.

Some investors looking to profit from the precious metals mining industry can also consider investing in precious metal mining funds. These investment vehicles pool resources from multiple investors to create diversified portfolios comprising various mining stocks. Opting for such funds allows investors to spread their risk across different companies and projects within the industry. Moreover, some investors entrust the active management of these funds to experienced fund managers, enhancing the potential for optimized returns.

Trends in Mining Technology

 For decades, new technologies have changed the way mining is practiced. More recently, technology has significantly contributed to the speed and quality of mining operations worldwide.

Some emerging technologies, such as drones and robotics, are increasingly replacing labor. Others, such as artificial intelligence, the Internet of Things, machine learning, and smart sensors, are increasing production without significantly reducing employment. In various contexts, these technologies will have varying effects. For instance, countries with greater economic diversity will be less adversely affected by changes in the labor market, and the adoption of particular technologies will depend on the situation.

New positions are being created for those skilled in GIS mapping, data processing, and software creation. Compared to the occupations they often supplant, including blasting, hauling, and drilling, these tend to pay better. In some circumstances, technological advances boost sustainability to the point that the considerably expanded scope of operation will boost the labor market even while employment per ton of ore mined is declining.

In addition to lowering average site expenses, digitization and analytics can improve safety, extend the lifespan of a mine, and boost the reserve base. The reserve base is the mine’s existing resources that meet the current mining practice criteria, such as ore quality. According to McKinsey, by 2035, self-driving mining enabled by data analysis and digital innovations like artificial intelligence will have saved mineral raw material companies from $290 billion to $390 billion yearly. In their daily administration and operations, most mining businesses are moving away from empirical models toward AI.

Additionally, they are converting from inflexible workforce scheduling to more dynamic models, with a multifaceted team concentrating on the most important areas and switching from plug-and-play technologies to many value-driven, bespoke techniques adapted to specific requirements.

Condition-based, reactive, prescriptive, preventive, and predictive maintenance are the five basic maintenance techniques that mining engineers adopt to ensure their machinery is properly functioning and maintained. Predictive maintenance takes the condition-based approach a step further by utilizing design-based detection of anomalies, including the online collection of sensor data, and applying data analytics to forecast machine dependability. Mining businesses are starting to utilize condition-based maintenance to cut costs, improve utilization, and prolong asset life by collecting information from IoT sensors, enabling them to assess every asset's health in real-time and forecast failure timing.

Some mining operations are now using autonomous trucks to improve safety while decreasing fuel consumption by 10-15 percent, as well as reducing risk at work sites and in adjacent areas. GlobalData research showed 1,068 automated haul trucks were operating worldwide in 2022. Currently, 30 to 50 percent of all primary emissions of greenhouse gases at mine sites are produced by mining vehicles.

The new technologies may have favorable social and environmental effects that will balance out the detrimental effects on labor. For instance, the data-connected mines of the future will provide residents living close by with real-time information on procedures, water quality, and tailings dam indicators. It may also provide tax authorities with improved data on output levels. Altogether, these changes are expected to result in more women gaining employment in distant operations centers, improved safety and health for employees, a decrease in emissions of greenhouse gases, and collaborative infrastructure like fast broadband and renewable power with an opportunity to stimulate economic growth.