Just how worried or excited should you be about fintech? In 2019, 64% of consumers have used two or more fintech services or platforms. Additionally, recent fintech statistics show that the COVID-19 pandemic has contributed to the acceleration of cloud services and similar solutions for the industry. As such, it makes sense that the usage of FinTech will only increase in the coming years. With cutting-edge hardware, software, and networks, fintech entices consumers to flock to its camp in droves, and incumbents are forced to follow suit.
The reach of fintech can be pervasive, so deep-diving into the key figures of the industry will enable you to make an accurate assessment of what exactly fintech can mean for your business. We have compiled essential and recent data on this field, from market size to consumer adoption and the goings-on in that underbelly of fintech—blockchain.
General Fintech Statistics
The nature of fintech leads analysts to categorize it into two sectors. These are the “fins”, which are fintech companies with a B2B model, and the “techs”, which are B2C fintech companies. Fins that offer online lending receive the most funding—42%.
In general, fintech market data shows growth, though it has encountered a hiccup in 2018. Its growth rate seems slower than anticipated because any new innovation will always encounter resistance. There are also concerns about fraud that force industries to update cybersecurity measures. A movement to blockchain, which decentralizes financial processes, can beef up security in this sense, though some banking CIOs—77% of them, according to recent data—are still hesitant in using blockchain technology.
How much is the fintech industry worth?
- The global financial services market is projected to reach $26.5 trillion by 2022. (The Business Research Company, 2020)
- Fintech market share across 48 fintech unicorns is worth over $187 billion as of the first half of 2019, or slightly over 1% of the global financial industry. (CB Insights, 2019)
- Fintech reached $55.3 billion in investments in 2019. To this figure, China contributed a total of $25.5 billion, of which more than half ($14 billion) is from Ant Financial of Alibaba Group, known for its Alipay mobile payment service. (Accenture, 2018)
- In the first half of 2020, global fintech investment reached 1,221 deals or a total of $26.5 billion. Many of the completed deals were carried over from 2019 as a result of the COVID-19 pandemic. (KPMG, 2020)
- Up to 28% of banking and payment services will be at risk of disruption due to new business models brought about by fintech. (PwC, 2020)
- Up to 22% of companies in the insurance, asset, and wealth management sector will be at risk of disruption due to new business models brought about by fintech. (PwC, 2020)
- Companies that use robotic process automation for banking tasks see a return on investment of 100% within three to eight months. (Medium, 2020)
How much is the fintech industry growing?
- The global fintech market is expected to grow at a CAGR of 23.58% from 2021 to 2025. (Research and Markets, 2020)
- Artificial intelligence is one of the leading technologies in the fintech market, with a market share of 38.25% in 2019. (Research and Markets, 2020)
- Blockchain and regulatory technology (regtech) are the fastest-growing segments of the fintech industry. (Grand View Research, 2019) (Transparency Market Research, 2018)
- Blockchain is worth $70 to $75 million in 2018, with a CAGR of 50% in the next six years. (IndustryArc)
- This puts Blockchain technology on track for a $20 billion worth by 2024. (Transparency Market Research, 2018)
- Blockchain can cut regtech costs by as much as $4.6 billion annually. (Quinland and Associates, 2016)
- Regtech is estimated to be worth $120 billion in 2020 with a CAGR of 52.8% (Grand View Research, 2019)
- Peer-to-peer (P2P) or digital lending, another segment of fintech, is worth $43.16 billion in 2018 and expected to rise to $567.3 billion in 2026 with a CAGR of 26.6%. (Reports and Data, 2019)
- In a survey, 56% of participants said that they recognize the importance of blockchain technologies. (PwC, 2020)
- Even if they recognized its importance, 57% of participants said they are unsure about how to respond to blockchain technologies. (PwC, 2020)
Fintech Market Share by Region Statistics
Fintech market research shows that venture capital investment is growing year after year, but investors are becoming more selective as the industry matures. Recently, as the slight dip in 2018 shows, they point toward choosing to fund fintech companies with a scalable model and demonstrated revenue, especially those in personal finance, payments, banking, lending, and insurance sectors.
Some incumbents, like JPMorgan & Chase Co., Goldman Sachs, and Citigroup, are highly active in fintech funding, but other investors are also looking to inject funds in emerging fintech solutions like robotic process automation, AI, and machine learning. Moreover, studies show that the machine learning industry will be worth $80 million in 2025.
- As of 2021, there are 8,775 fintech startups in the Americas. (Statista, 2021)
- Asia-Pacific fintech startups were numbered at 4,765 in 2020. (FinTech Control Tower, 2021)
- Europe, Middle East, and Africa had a combined total of 7,835 fintech startups in 2020. (FinTech Control Tower, 2021)
- In the United States and Canada, the biggest fintech segment is digital payment, valued at over $1.2 trillion in 2021. (Statista, 2021)
- 60% of credit unions and 49% of banks in the U.S. believe that fintech partnership is important. (Tipalti, 2020)
- Fintech market report in Asia, particularly China and India, shows that the region has the fastest growth in fintech consumer adoption. (Bloomberg, 2019)
- In Q2 of 2019, India had 23 VC deals representing $350 million while China only had eight, but valued at $375 million. (CB Insights, 2019)
- 61% of Chinese SMEs have adopted at least one fintech service. (Ernst & Young, 2019)
- By 2024, mainland China and the U.S. will account for more than 61% of the global fintech transaction value. (Statista, 2020)
- Contrast this to the next market, the United States, with only 23% of their SMEs embracing financial technology platforms. (Ernst & Young, 2019)
- Asia-Pacific regions have a 40% fintech lending market share. (Reports and Data, 2019)
- In 2021, the value of the fintech credit in the Asia-Pacific region excluding China is $1.76 billion. (Statista, 2021)
- North America is next, with 28%, Europe at 27.7%, and ROW at less than 5%. (Reports and Data, 2019)
- Cash is no longer king in China, with cash ATM withdrawals dropping in 2017. (Bloomberg, 2019)
What are examples of fintech companies?
- PayPal is one of the most well-known fintech companies, with a transaction volume of $333.8 billion in 2019. (Paypal, 2020)
- Venmo is another, which reached its first $1 billion transaction volume in January 2016. (Venmo, 2016)
- Stripe is the biggest fintech company in the United States and one of PayPal’s biggest competitors, worth $22.5 billion. (Forbes, 2019)
- China’s online payment market is dominated by three services that make up 66% of all digital transactions made in China (Alipay, Chinapay, and Tenpay), which make up 29%, 19.5%, and 17.6% of the market, respectively. (Bloomberg, 2019)
- Ant Financial is the biggest fintech company globally, with an estimated worth of $150 billion in 2020. (CNBC, 2020)
Fintech Consumer Adoption Statistics
Ernst & Young’s biennial fintech consumer adoption report shows that consumers worldwide are adopting fintech services much more quickly than anticipated. The last report in 2017 predicted that only 52% of consumers worldwide would have adopted fintech services in 2019, but the estimate proved to be too conservative as the actual figure overshot it by 12 points.
This, coupled with the insight that 27% new adopters are concerned with fees and rates—as they would in any traditional financial institution—suggests that fintech market size is not only growing but also maturing. The most telling is the swift adoption of payment gateway service providers such as Stripe.
- In 2019, 64% of consumers worldwide have used one or more fintech platforms, up from 33% in 2017. (Ernst & Young, 2019)
- 96% of global consumers are aware of at least one fintech service. (Ernst & Young, 2019)
- 60% of consumers want to transact business with financial institutions with a single platform, such as social media or mobile banking apps. (Ernst & Young, 2019)
- COVID-19 spurred the adoption of fintech such that 73% of Americans view fintech as “the new normal.” (Plaid, 2020)
- 71% of consumers say that they leverage services of fintech companies such as PayPal or Venmo for payments. (MX Technologies, 2020)
- 39% of consumers report that the current pandemic has made them more likely to trust fintech companies for banking services. (MX Technologies, 2020)
- 52% of U.S. consumers say that they wish their financial institution would invest more in mobile banking. (MX Technologies, 2020)
- Although, as of 2019, 25% of global SMEs have already adopted fintech services for use in banking, financing, and financial management. (Ernst & Young, 2019)
- The biggest market for consumer adoption of fintech is China (87%) and the lowest is Japan (34%). (Ernst & Young, 2019)
- The United States’ consumer fintech adoption is at 46%. (Ernst & Young, 2019)
- The consumer fintech adoption rate for global money transfers and payments is 75%. (Statista, 2021)
- The adoption rate for banking and payment SMEs worldwide is 56%. (Statista, 2021)
- One in three millennials in the U.S. are open to switching banks in the next 90 days. One in three millennials also think that they will not need a bank in the future. (PwC, 2020)
What are fintech products?
- In the first half of 2019 alone, digital payment has reached $4.1 trillion. (Statista, 2021)
- A big driver of mobile payment growth is consumer spending on mobile apps, which is valued at $106 billion in 2018. (TechCrunch, 2018)
- 75% of global consumers have used at least one fintech service to pay online or using a mobile application. (Ernst & Young, 2019)
- 80% of the millennial cohort have used a smartphone at least once to shop online or pay bills. (NASDAQ, 2017)
- 70% of U.S. consumers say that mobile banking will represent the future. (MX Technologies, 2020)
- By 2020, it’s estimated that 90% of mobile users worldwide would have made at least one mobile payment. (Bluebird)
- Mobile payment services process an average of $1 billion worth of transactions every day. (Mordor Intelligence, 2021)
- On average, a consumer using mobile payment will move $188 a month. (Mordor Intelligence, 2021)
- About 36% of global smartphone users was expected to use proximity mobile payments in 2019. (eMarketer, 2018)
- 42% of consumers say that since the pandemic started, they have used mobile banking apps as their primary banking solution. (MX Technologies, 2020)
- In 2021, it’s estimated that 1 in 2 people in the world will have access to mobile banking. (Juniper Research, 2017)
- P2P lending has processed $9 billion in payments in 2014. This amount is expected to be close to $1 trillion in 2050. (Statista, 2015)
- There are 54 million P2P lending users in 2014 in the United States and it was expected to more than double in 2020 to 126 million. (Statista, 2015)
Most Popular Payment Gateway Systems
- SecurionPay is a cross-platform, online and mobile-based payment gateway that provides a friendly and simple card payment experience.
- Authorize.Net is a payment gateway system that expedites transactions anywhere and on any platform.
- BlueSnap is an all-in-one payment gateway that can accelerate commerce for any type of business, whether B2B or B2C.
- WePay provides fully integrated payments and risk services, giving users a desirable end-to-end user experience.
- Braintree is an online payment platform that offers straightforward tools needed to accept payments and enable eCommerce.
Fintech Blockchain Statistics
Data in blockchain is practically immutable, which makes this technology attractive to regtech companies for KYC solutions, among other things (The Fintech Times, 2018). Additionally, because financial transactions use a clearing authority to track and authorize these transactions, widespread adoption of blockchain can make incumbent financial establishments obsolete. Banks are beginning to invest in blockchain technology for their processes, particularly in authenticating digital transactions like mobile payments and remittances and tracing such transactions with absolute proof of ownership (International Trade Administration, 2016).
- Blockchain’s net value is around $20 billion in 2015, or 0.025% of the world’s $80 trillion GDP. (World Economic Forum, 2015)
- It’s expected to rise to 10% of the world’s GDP by 2027. (World Economic Forum, 2015)
- Blockchain investment in 2017 increased by 79% compared to the previous year. (PwC, 2017)
- 84% of business executives believe that blockchain technology will eventually become mainstream. (Deloitte, 2018)
- 77% of incumbent financial institutions plan to use blockchain as part of their core strategy in the next 3–5 years. (PwC, 2019)
- 90% of American and European banks are investing in blockchain for security. (Fortunly, 2020)
- There is projected funding of over $425.5 million for blockchain startups in Europe in the next 12 to 18 months. (Crunchbase, 2021)
- Blockchain technology can reduce 30% of investment banks’ infrastructure costs, or about $8–10 billion. (Accenture, 2017)
- 40 million users now have a blockchain wallet as of June 2019, up from 25 million in June 2018. (Mordor Intelligence, 2021)
- As of January 2021, there have been over 600 million blockchain transactions in total. (Blockchain.com, 2021)
How many bitcoins are there?
- Bitcoin is the world’s first and most widely adopted cryptocurrency, with a share of 62.42% as of January 2021. (CoinMarketCap, 2021)
- There are over 8,000 active alternative cryptocurrencies or “altcoins”. (CoinMarketCap, 2021)
- 17.7 million Bitcoins have been mined, which leaves only 3.3 million Bitcoins left. (CoinSutra, 2019)
- Bitcoin miners have earned a total of over $33.7 million as of January 2021. (Blockchain.com, 2021)
- 42% of Bitcoins traded in 2016 was purchased by Japanese yen (JPY). (BTCWires, 2020)
- 60% of the world’s Bitcoin mining and 50% of the world’s Bitcoin computing power is in China. (CoinShares Research, 2019)
- Antpool mined 20% of the Bitcoins in 2016 to 2017. (BTCWires, 2020)
- Ethereum has four times more developers than Bitcoin, with 18% of all open-source crypto developers working in the system. (Consenys, 2019)
Maximize These Insights for Your Business Today
Incumbent financial institutions and fintechs are, at the moment, the best of frenemies. As technology redefines convenience, traditional ways of thinking, especially in investments, are increasingly proving to be difficult. At the other end of the spectrum, more people still trust traditional banks and financial services more than newfangled ones. Regulations that keep them in leash after the 2008 financial crisis mean that they are, at the moment, more secure than fintech.
Financial services, however, are inching closer to a revolution that’s akin to the wheel—once finance and technology have become inseparable, it will be overwhelmingly hard to imagine a time when they are mutually exclusive and competing for the same space. The worldwide adoption of mobile technology, the ubiquity of internet access, and the disruption of the COVID-19 pandemic propel the adoption of technologies—including big data and the internet of things—to suit a changing global demographics, but this is true for other industries as well and not exclusive to financial markets.
Curiously enough, blockchain sits at a juncture between finance and other industries. Other applications can use blockchain and not simply to authenticate, track, and authorize financial transactions. Fortunately, you don’t need to wait for blockchain to become mainstream to utilize the right financial reporting software for your business; it’s already here.
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