Interested in finding out more about fintech? Read on to learn 29 critical fintech statistics to remember as you run your business.
Fintech is described as technology that is used to enable or support financial and banking systems and services. Also known as “financial technology”, fintech is among the fastest growing areas for venture capitalists. Overall, fintech competes with the more traditional finance methods and services.
Over the years, finch has only grown in popularity. Generally, financial technology is seen to have started back in 1967, when Barclays installed the first ATM. However, there have been several waves of fintech, with fintech 1.0 linking back to Reuters in 1851.
Overall, fintech has become the new normal for many of us. In the digital age, most people rely on online banking, mobile banking, and various other forms of banking and financial technology.
However, as the world is ever-changing, so too in fintech. Here, we will cover 29 critical fintech statistics that you should bear in mind as you continue your career.
29 Critical Fintech Statistics
1. In 2021, There Were 26,236 Fintech Startups Globally, Compared To 20,925 In 2020
There were almost 6,000 more fintech startups in 2021 compared to 2020. While this number continues to grow, many continents and countries outperform others.
2. The Americas Are Responsible For The Largest Number Of Fintech Startups Year By Year
The most fintech startups occur within the Americas, and due to funding from the Americas. Other Continents fall behind significantly in this area.
3. By 2024, It Is Expected That Fintech Will Reach A Revenue Of €188 Billion, Or Around $185.5 Billion
For reference, the fintech revenue from 2018 was a mere €92. This is a huge increase in just a few years, and by 2024 we can expect to see massive increases every year.
4. There Has Been A 3.5X Increase In Fintech Industry Investment Since 2015
Investment in the fintech industry has grown rapidly over the past few years as more and more businesses recognize the potential of this industry. Overall, there have been sharp increases in the amount of investing that some countries do in regards to fintech.
5. Venture Capital Funding And Investment Has Surpassed $40 Billion In 2018, 2019, And 2020, With Figures Slowly Dropping
From 2016-2018, there was a sharp rise in venture capital funding and investment in fintech. However, these numbers have dropped slowly, with capital funding and investment going from $48.33 billion in 2018 to $43.11 billion in 2020.
While these numbers are still excellent, there is no denying that there are differences to note. These differences, however, are likely due to global issues such as the Covid-19 pandemic. This pandemic has had a huge impact on millions of businesses.
As such, it is expected for investment and capital funding to increase in 2022-2023 as the economy recovers.
- 2016 – $23.53 billion – number of deals = 1,609
- 2017 – $23.14 billion – number of deals = 1978
- 2018 – $48.33 billion – number of deals = 2,390
- 2019 – $43.99 billion – number of deals = 2,361
- 2020 – $43.11 billion – number of deals = 2.081
6. Over Half Of All Venture Capital Funding Is Done By North America, With Europe Taking Second Place, And Asia In Third Place
North America, the United States in particular, is responsible for over half of all venture capital funding. Overall, North America accounts for 56.3% of all capital funding in recent years. Europe sits in second place with 22.2%, and Asia is in third place, with 16.1%.
Continents such as Africa have not historically played key roles in the fintech industry. However, as times are changing, more and more money is being poured into the fintech industry by players all around the world.
- North America – $12,822 million (56.3%)
- Europe – $5,049 million (22.2%)
- Asia – $3,668 million (16.1%)
- South America – $999 million (4.4%)
- Australia – $193 million (0.8%)
- Africa – $45 million (0.2%)
7. Visa Is The Largest Fintech Company Based On Market Capitalization, With A Staggering $384.08 Billion
Visa is the most successful fintech company. You can find daily reports for all the big players in the fintech industry here. At the time of writing this, Visa has a market cap of $394,546,583,189.00.
The company with the second-highest ranking market capitalization is China’s Ant Financial, with a cap of $312,000,000,000.00. However, this reference was last updated in October 2020, and is private. As such, these values are likely to be different now.
8. More Than Half Of The 20 Top Fintech Companies By Market Cap Are United States-Based
As you can see from the list below, over half of the top 20 fintech companies by market cap are based in the United States. After the United States, countries such as China and the United Kingdom have incredibly successful fintech companies.
Some countries, such as Brazil, Ireland, and Indonesia, have limited fintech companies, but they have proven to be incredibly successful.
Below is a list of the top 20 fintech companies by market cap:
- Visa – United States ($384.08 billion)
- Ant Financial – China ($312 billion)
- Mastercard – United States ($291.14 billion)
- Tencent – China ($136.42 billion)
- Intuit – United States ($116.13 billion)
- PayPal – United States ($107.31 billion)
- Stripe – Ireland ($74 billion)
- Fiserv – United States ($63.15 billion)
- Ayden – Netherlands ($43.41 billion)
- Nubank – Brazil ($41.5 billion)
- Checkout.com – United Kingdom ($40 billion)
- Square – United States ($36.83 billion)
- Gojek – Indonesia ($35 billion)
- Revolut – United Kingdom ($33 billion)
- FTX – Hong Kong ($32 billion)
- Chime – United States ($25 billion)
- Polygon – India ($20 billion)
- Coinbase – United States ($16.77 billion)
- Paytm – United States ($15.73 billion)
- Ripple – United States ($15 billion)
9. Over 90% Of Citizens In China Use Fintech Banking, Financial Management Solutions, And Payments
China is the top country regarding its citizens adopting fintech banking in their daily lives compared to the rest of the world. In China, over 90% of the citizens in the country now use fintech payments, banking, and financial management solutions. Compared to the United States’ 52% and Mexico’s 49%, this is an incredible number.
The United Kingdom sits in fifth place, as only 41% of the population have adopted fintech payments, banking, and financial solutions. However, these numbers are expected to gradually climb across the board until it’s in the 90s, like China.
Fintech adoption rates for banking and payment:
- China – 92%
- United States – 52%
- Mexico – 49%
- South Africa – 47%
- United Kingdom – 41%
10. Personal Loan Agreements That Use Fintech In The United States Have Increased By 33%
With fintech becoming the go-to in the modern world, it comes as no surprise that personal loans that incorporate fintech have increased by 33% in the US. This number is likely to be similar across the world, as fintech is integrated into the way we live for ease and efficiency.
11. Banking Executives Believe That Fintech Has A Major Impact On Mobile Payments, With “Digital Wallet” Searches Up By 925% Over The Last Decade
People searching the term “digital wallet” have caused this key phrase to soar by 925% over the last 10 years. This does hand-in-hand with senior banking executives believing that mobile banking is heavily impacted in fintech.
12. By The End Of 2022, The Global Financial Sector Is Estimated To Be Worth $26.5 Trillion, And Have A Cagr Of 6%
The compound annual growth rate estimation tells us that the global financial sector is going nowhere, and will only be worth more in the upcoming years. A CAGR of 6% is an impressive number, and this is also likely to rise with time.
13. 25% Of The Fintech Market Are Digital Payment Products
Digital payment products make up a quarter of the fintech market. This includes things such as mobile payment apps and wallets, which are widely used across the world thanks to how easy and effective they are.
14. 49% Of Banks And 60% Of Credit Unions In The United States Hold The Belief That Fintech Partnership Is Incredibly Important
Since large parts of the population use fintech in one way or another, it is not surprising to hear that banks believe the fintech partnership is important. Realistically, without fintech partnership, many people would likely not want to use the bank because it won’t hold the same efficiency.
15. At Least One Fintech Company Or Service Is Known By 96% Of Global Customers
One fintech company – whether that is PayPal. Mastercard, Visa, or Ant Financial, at least 96% of global customers are familiar with at least one of these companies. This just outlines how far and wide fintech has spread and how many people use the products.
16. Only 33% Of Customers In 2017 Used One Or More Fintech Platforms, While 64% Of Global Customers Have Used A Fintech Platform As Of 2022
The percent of people using fintech platforms almost doubled from 2017 to 2022. In 2017, only 33% of customers were using fintech in their daily lives, whereas 64% do now. This is also another statistic to highlight the popularity of fintech, and how far it has spread in such a short amount of time.
17. E-Commerce Is Among The Biggest Growth Drivers Of Fintech. Thanks To Customer Behavior, It Has A Cagr Between 10-12%
Thanks to ecommerce, fintech continues to thrive. E Commerce is a term used to describe sales that are done with electronic aid – such as Amazon, Etsy, and so many more. Any brand that has a website, or sells products using a website is classed as ecommerce.
As we all know that ecommerce is incredibly popular, it comes as no surprise that this has helped to drive fintech even further. Because of customer behavior over the recent years, ecommerce and fintech together have a CAGR of 10-12%, which is outstanding.
18. In 2022, 90% Of Users Will Use Their Smartphone To Make A Mobile Payment
The vast majority of users will be using smartphones to make payments in 2022, and the years after. It wouldn’t be surprising if things like bank cards become increasingly rare as time goes by due to this.
19. Fintech Is Estimated To Disrupt $4.7 Trillion In Revenue
Around $4.7 trillion in revenue is thought to be disrupted by the use of fintech. This relates to fintech disrupting the old banking system that many of us are used to, and slowly gaining ground on the traditional banking service.
This is because fintech companies broaden access to the services that everyone needs to help them invest and save money.
20. Up To 88% Of Legacy Banking Companies Are Concerned About Losing Revenue To Various Fintech Firms
Understandably, a significant number of banks are worried about losing revenue to fintech companies. As the previous statistic shows, this concern does make sense, and is likely to impact hundreds of banks over the years.
Fintech Statistics and Predictions for the Future
21. By 2026, The Estimated Value Of The Global Digital Payments Market Is $11.29 Trillion
For context, the transactional value of the GDPM of 2020 was $5.44 trillion. In just a few short years, this number is estimated to skyrocket and double to 11.26 trillion by just 2026. This will result in the CAGR being an incredible 11.21% between the years of 2021-2026.
22. By 2023, The Global Fintech Market Is Estimated To Reach $305.7 Billion
The fintech industry was worth $11.8 billion in 2018, and is expected to have an annual growth rate of around 22%. This will result in the fintech industry being worth $306 billion by the year 2023. Once again, this outlines the popularity of fintech, and how valued it is in today’s age.
23. $2.8 Trillion Assets Are Expected To Be Managed By Robo-Advisors By 2023
Research has shown that the age of robots is here, and we can expect them to be handling all the money as soon as 2023. This will have massive knock-on effects, with both the negatives and positives being unveiled in time.
24. In The Next Decade, Ai Is Expected To Power And Handle Up To 95% Of Customer Interactions
Like the statistic above, the use of AI and robots will be commonplace, and up to 95% of customer interactions will be done with a robot within the next 10 years. Between 2019 and 2023, it is estimated that customer-bot interaction will grow by a massive 3,150%.
25. Mobile Payments Were Used By Over 100 Million People In 2021, And The Number Is Expected To Continue To Rise
It’s no surprise that millions of people are making use of fintech, and using their mobile phones to make payments.
26. Labor Productivity Is Expected To Be Increased By Ai, With An Increase Of Up To 40%
AI is being used in daily interactions and roles now, and it can be difficult to keep up with it all. By 2035, it is expected that AI will increase the fintech profits by $14 trillion, and improve overall profitability.
27. In The Next 3-5 Years, 82% Of Traditional Financial Companies Are Expected To Increase Their Finch Partnerships
Fintech is popular for a reason, and customers seem to prefer fintech to traditional banking means. As such, we can expect up to 82% of traditional finance companies to increase partnerships with fintech companies to stay afloat.
28. Africa Reached A Record Of Fintech Investment, With A Total Of 1.6 Billion Being Invested Across The Continent In 153 Deals In 2021
While Africa has not been a big player in fintech, the continent is making its mark, and is expected to be part of a fintech boom.
29. A Rise Of $912.43 Billion Is Expected By 2028 Due To Peer-To-Peer Digital Lending
In 2018, peer-to-peer digital lending was worth $43.16 billion, but this number is expected to skyrocket to $912.43 billion by 2028. This will come with a predicted CAGR of an impressive 26.6%.
The more we can learn about fintech, the better chance we have of being successful in our businesses and pursuits. By learning and understanding what makes fintech work, you can take advantage of it, and profit from it yourself.
Frequently Asked Questions
Is Fintech A Threat To The Banks?
Yes, fintech is gradually encroaching on the banking industry. However, the majority of fintech companies don’t have the regulated environment that you find within banking, which could cause issues.
What Is An Example Of Fintech?
Examples of fintech include the following: crypto apps, investment apps, payment apps, robo-advisors, and peer-to-peer lending apps. There are many other examples of fintech, but all apps like PayPal, Stripe, and the like are all fintech products.
Why was the fintech industry created?
Fintech as it is today was created to give precise calculations and help finance workers get their jobs done easily and accurately. Fintech was created to help make lives easier and more efficient.
What Is The Future Of Fintech?
Fintech has a very strong future. This industry is worth more every year, and will only continue to grow in revenue and use. As ecommerce has a huge impact on fintech, we can only assume that it isn’t going anywhere, and will remain strong through the years.
Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.