FinTech – Financial Technology – is the technology and innovation that has emerged to compete with traditional financial services. It is an emerging industry that uses technology to improve activities in finance. The broad canvas that fintech is where financial services companies integrate technology in order to improve efficiency and delivery to consumers.
The Fintech sector has dramatically shaken up the traditional banking and financial services sector, whilst the arrival and advancement of blockchain technology have expediated the fintech sector boom. As another record year for fintech closes out, here are 10 Interesting Statistics and Predictions for the FinTech Sector:
1. Digital Payments – The Digital Payments segment of Fintech is the largest segment within the FinTech sector. In 2020, it had a global transaction value of US$5,204 billion in 2020. According to statista, it is expected to reach US$6,534 billion in 2021 and it is projected to be worth US$11.29 trillion by 2026.
2. Digital Payments – In 2016, 72% of Americans used digital payments, defined to include browser-based or in-app online purchases, in-store checkout using a mobile phone and/or QR code, and person-to-person (P2P) payments. In 2020, the number rose to 78%. In 2020, the number increased to 82%.
3. Fintech Funding – As of October 2021, there was a record $91.5 billion in global funding so far this year. According to CB Insights’ State of Venture Q3’21 Report, 2021 saw more than double the amount of global funding than in 2020. From all 2021 global fintech deals, 38% were conducted in the USA.
4. Fintech Startups – As of November 2021, there were 10,755 fintech startups in North America, making it the region with the most fintech startups globally. In comparison, there were 9,323 such startups in the EMEA region (Europe, the Middle East, and Africa) and 6,268 in the Asia Pacific region.
5. Online Banking – Everything from opening an account to making transactions is done through a mobile app or website. In 2020, there were 1903 million people worldwide using online banking. In 2021, the figure rose to 2043 million. By 2026, the number of worldwide users of online banking is expected, according to statista, to top 2519 million.
6. DeFi – In September 2020, the DeFi market size, as measured by the amount of cryptocurrency locked, stood at $19.5bn. By the start of 2021, the amount locked in DeFi stood at $24.5billion. At the end of 2021, the DeFi market stood at $255 billion, a growth rate of more than 1000% in just a single year.
7. Fintech – The largest fintech company in the world is Ant Group. It has a net worth of more than $313 billion and employs over 10,000 people.
8. Fintech Unicorns – Fintech unicorns, privately-owned companies with market values of $1 billion or more jumped from 79 in January 2021 to 154 in September the same year. Fintech unicorns now constitute more than a third of all unicorn companies.
9. Artificial Intelligence – AI in fintech had a market value of $6.69 billion in 2019 and $7.91 billion in 2020. The market value is expected to reach $26.67 billion by 2026, at a compound annual growth rate (CAGR) of 23.17%.
10. Fintech Lending – 28% of the top 50 fintech companies are in the lending sector.
