Fintech Statistics for 2022| Balancing Everything (2023)

With an average annual growth rate of nearly 25%, the financial technology industry is among the fastest-growing worldwide. The latest fintech statistics suggest that the sector should hit a value of almost $310 billion by 2022 if this positive trend continues. So, while fintech isn’t among the top 10 global sectors by revenue, it surely is getting there. Is fintech a good investment? What are the top fintech companies? These are just some of the most important questions about this attractive sector. Find all the answers and other geeky stats below.

Fintech Statistics (Editor’s Choice)

  • The fintech market size is projected to reach $310 billion by 2022.
  • Stripe was the largest US fintech company valued at $35 billion.
  • The largest fintech business globally is the Ant Group, worth $131 billion.
  • The fintech sector attracts about $50 billion in investments every year.
  • Two-thirds of financial transactions are made online.
  • In 2020, there were 8,775 fintech startups in the US.
  • The global fintech adoption rate rose to 64% in 2020.

Fintech Industry Statistics

1. The fintech industry size is expected to hit $310 billion by 2022.

In 2018, the sector attracted $128 billion in investments globally. Experts project the compound annual growth rate (CAGR) of the industry at 25%. Meaning, the expected investments in the sector by 2022 are set at $310 billion. In 2018, nearly 50% of the total venture capital of $254 billion went to fintech businesses.

(Toptal)

2. North America leads the way in the number of fintech startups by year.

While Asia boasts leading fintech companies by revenue, North America has the most fintech startups. Fintech statistics point to 8,775 financial services startups in the North American region. By contrast, there were 7,385 in EMEA (Europe, Middle East, Africa) and 4,765 in APAC (Asia-Pacific). It’s interesting to note how the number of fintech startups drastically jumped in 2020. In NA, EMEA, and APAC, there were about 5,600, 3,500, and 2,800 newly founded fintechs in both 2018 and 2019.

(Statista)

Fintech Statistics for 2022| Balancing Everything (1)

3. Stripe was the largest fintech company in the US in 2020.

Valued at $35 billion, Stripe was way ahead of its main competitors Ripple and Coinbase. These two were worth $10 billion and $8.1 billion, respectively. Robinhood, Chime, and Plaid came in next with respective values of $7.6 billion, $5.8 billion, and $5.3 billion. Other brands among the top 10 fintechs in the US included SoFi, Credit Karma, Opendoor, and Root. In 2020, these businesses were valued at $4.8 billion, $4 billion, $3.8 billion, and $3.7 billion, according to fintech statistics for the US.

(Statista)

Fintech Statistics for 2022| Balancing Everything (2)

4. Asian companies boast great results globally.

The Asian market seems to dominate the global financial technology industry as most global leaders are based there. Paytm deserves mention among the best with its latest $16 billion valuation. The ecommerce payment system is based in India and has been on the rise lately. Grab is another global leader thanks to a $14 billion valuation and investors like SoftBank and Uber. Grab is based in Singapore and is in the ride-hailing, food delivery, and digital payment markets.

Originating in Indonesia, GoJek is another company among the top fintech businesses, global fintech stats reveal. This ride-hailing and online payment service was lately valued at $12 billion. However, no fintech comes near China’s Ant Group. Next time you wonder what the largest Fintech company in the world is, remember this name. Its latest valuation is an impressive $131 billion. This doesn’t surprise anyone, considering that the Ant Group is the owner of the country’s biggest digital payment platform—Alipay—and serves about a billion customers.

(Insider Monkey)

5. 28% of the top 50 fintech companies are in the lending sector.

If we analyze the biggest fintech companies per sector, it’s evident that lending is the most profitable one. About 28% of the top 50 financial tech companies work in lending. Three other popular types of fintech companies are wealth, payments, and insurance. Among the top 50 companies, eight, seven, and six work in these sectors. Other industries boast one, two, or three companies among the best 50 financial technology companies. These divisions include accounting, crowdfunding, currency & forex, and investment.

(finleap)

Fintech Statistics for 2022| Balancing Everything (3)

6. Total digital payment transaction value projected to surpass $10.50 trillion by 2025.

The latest fintech transaction statistics and trends flag a total digital transaction value of $10.52 trillion in 2025. By the end of 2021, the total transaction value was expected to surpass $6.68 trillion. In 2020, it was at $5.47 trillion, while in 2017, it was only $3.04 trillion. These figures point to strong fintech growth, especially in the digital payments sector. After all, our PayPal stats show that this service alone has over 305 million active users, and doesn’t seem to slow down.

(Video) Fintech Trends 2022 | Top 9 Finance Tech Trends for the new year!

(Statista)

7. Fintech employees earn an average of $125,000 a year.

The average US fintech salary is $64.10 per hour, fintech employment stats show. Entry-level jobs have a low starting salary of about $87,712, while senior positions pay an average of $187,000. New York is the state where fintech employees have the highest average salary of $170,000. The state is followed by fintech workers in Connecticut and Michigan, who make $162,500 and $155,000 a year.

(talent.com)

Fintech Trends

8. Global fintech adoption reached 64% in 2020.

If we analyze fintech by the numbers, some positive trends become apparent. The global adoption rate of fintech products in 2020 was 64%. Then, 96% of consumers were aware of at least one payment fintech firm. As for how many consumers take advantage of fintech services, 75% use a money transfer and payment service, and 48% use insurance services.

(Intellias)

9. In 2019, China was the leading market regarding fintech adoption.

The country’s fintech adoption rate was an impressive 87%, and the same rate was recorded in India, too. Russia had a fintech adoption rate of 82%, just like South Africa, EY’s fintech stats show. The UK, Peru, the Netherlands, Mexico, and Ireland had adoption rates of between 70% and 80%. It’s surprising to see the American fintech adoption rate at only 46%. Australia was better than the US, with an adoption rate of 58%, whereas Canada wasn’t included in the calculations.

(EY)

Fintech Statistics for 2022| Balancing Everything (4)

10. In 2019, money transfer and digital payments had the highest adoption rate.

While lending is ahead of other types of financial technology products for investors, digital payments attract the most users. The money transfer and payments sector boasted an adoption rate of 75%, much higher than the 27% adoption rate of borrowing. Now that you know which is the most used fintech service, let’s analyze the less-popular sectors’ adoption rates. The EY financial statistics show that savings and investments have an adoption rate of 48% and budgeting and financial planning of 34%. Insurance is currently the least popular among the fintech products, with an adoption rate of 29%.

(EY)

Fintech Statistics for 2022| Balancing Everything (5)

11. The financial technology sector gets about $50 billion in investments every year.

About $5.6 billion of fintech funding was raised by blockchain start-ups in 2017. To create a new digital bank, founders need at least $50 million. So, it’s not surprising that with that funding, over 500 fintechs are launched every year. The adoption rate of insurance, budgeting, and financial planning, and savings and investments was 29%, 34%, and 48%.

(Intellias)

12. Two-thirds of financial transactions in 2020 were made online.

Fintech industry statistics show that over 66% of financial transactions were made via the internet. Experts further forecast that 2 billion unbanked people could be addressed through mobile thanks to fintech. Still, not everyone is looking forward to the rise of fintech and smart technologies. About 40% of banking roles are expected to be disrupted by machine learning. American banking stats meanwhile show that over 161 million Americans bank online.

(Intellias)

13. Low-cost offerings and ease of use are the top reasons for using services from non-traditional banking entities.

Unless traditional banks step up their game, users will keep driving the growth of non-traditional fintech companies. Fintech data shows that customers are attracted by low-cost offerings (70%), ease of use (68%), and faster service (54%). They also leave traditional banks to pursue better features (39%) and personalized products (39%). This trend is especially evident among new-age customers. About 48% said they are likely to switch to non-traditional banks in the next 12 months.

(Video) 2022 fintech predictions with Zach Perret

(Fintech World Report)

14. Cultural gaps and process barriers disrupt fintech firms’ collaboration with their bank partners.

About 70% of fintech companies never see eye-to-eye with collaborative bank partners. Banks further have complex processes and infrastructures that contrast the fast-paced style of fintech firms. These differences create cultural gaps in the collaboration between these two.

Then, over 70% of fintech companies admit to being frustrated by process barriers, which is another issue of contention between fintech brands and banks. Additional fintech stats show that 50% of these firms lack the funds to scale their operations, while 60% perceived a lack of commitment from partner banks. Over 50% of fintech executives admit to not having identified the right partner bank for collaboration.

(Fintech World Report)

15. Emphasis on agility and setting KPIs are the best collaboration practices between fintechs and incumbent banks.

From a fintech perspective, it’s essential to emphasize agility (67%) and set and monitor KPIs (67%) to improve collaboration with incumbent banks. Governance and risk management (64%), leadership involvements (58%), and proactive innovation (56%) are the other aspects of a successful collaboration. Finally, 53% of fintech companies believe that cultural compatibility is essential for positive experiences when working with incumbent banks.

(Fintech World Report)

16. Fintech needs smart marketing strategies to boost adoption rates globally.

With the average human attention span at only eight seconds, fintech businesses need a solid marketing strategy to succeed. The latest fintech marketing stats show that strong storytelling and relevant influencer marketing yield great results. Then, 80% of online content is expected to be video by 2021. This is another fact fintech companies must use to their advantage.

(Contentworks)

17. Data storage expenditures, meeting turnover targets, and onboarding costs are the main operational challenges of fintech companies.

Fintechs adjusted their FY 2020 turnover target by -4% as they faced various operational challenges throughout the year. Costs for data storage and onboarding increased by 11% and 8% year-on-year. Fintech businesses further saw their platform downtime jump by 1% alongside the agent or partner downtime (5%).

(Cambridge Centre for Alternative Finance)

18. 50% of forex traders are millennials.

Millennial fintech app use statistics reveal that half the forex traders belong in this age group. New investment options offered by financial platforms like Robinhood are also trendy. Millennials are also actively using fintech applications and services. Venmo statistics meanwhile show that this service is the most popular among this respective age group.

(Contentworks)

19. Millennials’ high adoption of fintech is among the drivers of the sector’s rapid growth.

Millennials are most likely to use online (92%) and mobile (79%) banking. Then, 73% of this generation are excited about new financial offerings from tech companies like Apple, Google, and Amazon. Millennial consumers tend to dislike traditional banks and their services. According to millennial fintech app statistics, 64% of this age group have at least one full-service banking application. 59% and 41% of Gen X and Baby Boomers can say the same.

(CBInsights)

20. Men dominate the fintech world.

Among all fintech founders, 88% are men, and only 12% are women. This figure shows a severe gender gap in the finance technology industry. The situation is similar when we analyze the share of banking leaders by gender – 82% are men, and 18% are women. Finland is one country that can boast positive trends towards closing the gender gap.

In 2018, 60% of employees in financial services in the country were female. In France, the USA, and Japan, female workers’ share was 58%, 55%, and 53%. Meaning, women are included in the fintech and financial sectors. They rarely hold top positions, though.

(Video) The Future of Finance: Technology Trends in the Fintech Industry 2022

(Findexable)

Global Fintech Stats

21. The United States had the highest global fintech index by country in 2019.

The country’s total score was 31.789, and its position remained unchanged compared to 2018. The Findexable fintech industry analysis shows that the following countries complete the list of top five global fintech destinations.

  • United Kingdom – 23.262
  • Singapore – 19.176
  • Lithuania – 17.343
  • Switzerland – 16.018

Australia scored the 8th position, followed by Canada. Judo Capital, MoneyMe, and Airwallex lead the way among financial technology firms Down Under. Fintech statistics for Canada point to Carta, Borrowell, and Wave as the leading local fintechs.

(Findexable)

22. San Francisco Bay was the top global fintech hub in 2019.

In its 2019 fintech industry report, Findexable rates the top 20 global fintech hubs. With a total score of 80.136, San Francisco Bay (United States) scored the first spot. London (United Kingdom), New York (United States) came in next with index scores of 54.888 and 36.889.

Here are the remaining cities that earned a place among the top 10:

  • Singapore City (Singapore) – 23.621
  • São Paulo (Brazil) – 18.805
  • Los Angeles (United States) – 17.867
  • Bangalore (India) – 16.093
  • Boston (United States) – 15.795
  • Berlin (Germany) – 15.616
  • Mumbai (India) – 15.063

(Findexable)

23. The UK’s fintech industry continually expands.

Fintech statistics for the UK reveal that this industry employs over 76,000 people across the Kingdom. The UK’s annual fintech revenue is about £7 billion (circa $9.57 billion), and the sector has grown by almost 70% since 2015.

(Cambridge Centre for Alternative Finance)

24. Johannesburg is Africa’s biggest fintech center.

The South African city had a total score of 9.097 and landed on 62nd place on the global fintech ranking by city. Findexable’s fintech stats for South Africa reveal four other SA cities among the top 10 African fintech destinations. Those are Cape Town, Pretoria, Gauteng, and Stellenbosch. Globally, South Africa scored the 37th position among all the best financial services hubs.

(Findexable)

25. Singapore City is the leading financial services hub in Asia-Pacific.

The destination scored an index of 23.621, and its fintech worldwide rank was 4th in 2020. Bangalore and Mumbai, India, came in second and third. The top five Asia-Pacific fintech hubs in 2020 list ends with Hong Kong, China, and Sydney, Australia. According to the Findexable fintech statistics for Malaysia, the country ranked 36th globally. Two of its cities ranked as Asian fintech hubs – Kuala Lumpur (17th) and Sandakan (37th).

(Findexable)

26. London dominates the European financial technology sector.

The UK financial technology services market continually expands and it’s no surprise that London’s fintech index in 2020 was 54.888 – the highest in the region and second-best in the world. Other European fintech services hubs include Berlin (Germany), Paris (France), Amsterdam (The Netherlands), and Dublin (Ireland).

(Findexable)

27. The range of functions and features is the main reason for using fintech globally.

About 66% of fintech consumers point to features as the main reason for using such services. Fintech industry statistics further list several other major motives for adopting financial technology companies and services.

(Video) Day2: 1st Pakistan Fintech Forum 2022 - Pakistan Fintech Network - Orbit Advertising

  • 24/7 availability of services – 55%
  • Ease of setting up, configuring, and using the service – 53%
  • Rates and fees – 39%
  • Compatibility with daily operations and infrastructure – 38%
  • Trust in the provider’s team and reputation – 31%

(EY)

28. FirstClose is among the companies that has received the most funding as of 2021.

Based in Texas, this lending property and borrower data intelligence provider got a massive $34 billion in funding, according to Growjo’s chart, beating the rest of the fastest-growing fintech companies. LendingPoint is the runner-up with $1.9 billion, followed by LANDBAY with $1.6 billion.

(Growjo)

Fintech Industry and COVID-19

29. Digital lending dropped, and everything else improved during the global pandemic.

Global fintech statistics by the Cambridge Center for Alternative Finance, digital lending transaction volumes dropped by 8% year-on-year. All other segments noted increased transaction volumes.

Here are the figures:

  • Digital custody – 36%
  • Digital asset exchange – 33%
  • Digital savings – 26%
  • Wealth tech – 24%
  • Digital payments – 21%
  • Digital capital raising – 16%

Other segments that also noted a year-on-year increase in transaction volumes include InsurTech, digital banking, digital identity, to name a few.

(Cambridge Centre for Alternative Finance)

30. Coronavirus drove changes in the existing products and services offered by fintech companies.

Fintech statistics show that 30% of fintech companies deployed additional payment channels, while an additional 15% are in the progress of doing so. Other standard adjustments include changes to onboarding criteria (29%), fee reduction (29%), and payment easements (25%). About 23% introduced commission waivers, while 24% presented new payment plans.

As for new and updated products, 31% of fintechs introduced value-added non-financial services. About 18% offered disbursement of COVID-19 relief funds, while 16% hosted COVID-10 specific funding campaigns.

(Cambridge Centre for Alternative Finance)

31. For most fintech businesses, COVID-19 harmed their financial position.

While only 8% of fintech companies reported positive changes in their capital reserve, fintech startup stats show. About 51% said that COVID-19 negatively impacted this segment. When it comes to current valuation, 41% saw it decrease due to the pandemic, while only 18% noticed a positive effect. The difference between a positive and negative impact by COVID-19 on fintech companies isn’t that drastic for future fundraising outlooks. Namely, 34% said their perspectives worsened, while the fundraising positions improved by 21%.

(Cambridge Centre for Alternative Finance)

Fintech FAQs

Will fintech replace banks?

It’s unlikely that fintech will completely replace banks. The more likely outcome is that traditional banks will adapt to compete. This means investing in online and mobile banking, along with adopting a more customer-centric attitude.

What are the different types of fintech?

Lending is one of the most popular types of fintech among investors, fintech stats show. Among consumers, money transfer and payments seem to be the most popular fintech sector. Other types of financial services you should know about include personal finance, equity financing, consumer banking, and insurance.

How do banks use fintech?

Traditional banks introduce new services like digital banking, savings, and payments. Additional partnerships include offering small business loans, personal loans, and debit cards. Thanks to partnering with financial tech companies, banks also provide tools that enhance the user experience. Chatbots and AI assistants are examples of such technologies.

Summary

All these fintech statistics reveal that this industry won’t be slowing down anytime soon. On the contrary, financial tech companies and their consumer-first approach have proven attractive to investors and customers alike. We, therefore, expect to see both the total fintech funding and adoption rate growing in the years to come.

(Video) Top Fintech & Payment Trends 2022

References: Toptal, Statista, Statista, Insider Monkey, finleap, Statista, Talent.com, Intellias, EY, Fintech World Report, Contentworks, Cambridge Centre for Alternative Finance, Contentworks, CBInsights, Findexable, Growjo

FAQs

How many Fintechs are there globally? ›

Exits value has fallen, but the count is higher than ever. There are now 473 fintech unicorns globally.

What is the most pressing fintech need? ›

1) Data Security
  • Two-factor authorization.
  • Biometric authentication.
  • Data encryption and obfuscation.
  • Real-time alerts and notifications.
  • Behavior analysis.

Which sector is most affected by fintech? ›

Insurance. FinTech has even disrupted the insurance industry. It is also known as Insurtech.

Is fintech the future? ›

The ongoing digitization of financial services and money creates opportunities to build more inclusive and efficient financial services and promote economic development. Fintech is transforming the financial sector landscape rapidly and is blurring the boundaries of both financial firms and the financial sector.

What are 4 categories of fintech? ›

In this primer, we will highlight four fintech areas — digital lending, payments, blockchain and digital wealth management — that are of particular interest due to their rapid pace of growth, technological disruption, and regulatory and other risks.

What is the number 1 fintech company? ›

In 2021, the largest two were the payment companies Visa and Mastercard, both headquartered in the United States, with a market capitalization of almost 478 billion and 368 billion U.S. dollars, respectively.

What is the next big development in fintech? ›

Fintech Regulations

With innovations and cybersecurity threats, more regulations will come. Blockchain technology will also add a new dimension to regulation. A critical topic for regulators will be the topic of data ownership. Digital banking and integrated platforms will draw questions and scrutiny on this concept.

What are the biggest trends in fintech? ›

Even if you don't work in the fintech industry, trends pertinent to this sector could still have a profound impact on your business. Embedded finance, alternative financing, ESG and blockchain technology are therefore four key trends to keep a close eye on.

What is the biggest challenge in fintech? ›

What are the Challenges in the FinTech Industry Today?
  • Fintech Cyber Security. ...
  • Lack of Tech Expertise in Mobile App Development. ...
  • Use of Modern Technologies. ...
  • Industry Regulations. ...
  • Winning and Nurturing User's Loyalty. ...
  • Big Data & AI Integration. ...
  • Blockchain Integration. ...
  • Effective Marketing Tactics to Acquire Customers.
5 May 2022

What are the top three fintech trends you find exciting? ›

Instead, we analyze several market research about FinTech trends and industry growth shifts, and we have summarized just a few in this article.
  • Banking-as-a-Service (BaaS) ...
  • Decentralized Finance (DeFi) ...
  • Open Banking. ...
  • Improve Customer Experience. ...
  • Artificial Intelligence and Machine Learning. ...
  • Cross-Border E-Commerce.
9 Feb 2022

What are the biggest challenges facing such fintech firms? ›

Data privacy, cybersecurity, and data breach issues are especially important in the Fintech space.

Will banks be replaced by FinTech? ›

It's highly unlikely that FinTech startups will replace traditional banks for a number of reasons. First, consumers still trust banks over startup companies to responsibly hold their money.

How fast is FinTech growing? ›

FINTECH FOR BUSINESS

That is why global business spending application sales, for example, are expected to reach $31 billion by 2029, growing at a 10.5% compound annual growth rate (CAGR) over the coming years, while accounting software sales are expected to reach $70 billion by 2030, growing at a 20% CAGR.

How quickly is FinTech growing? ›

The Current State of Fintech & Predictions For The Future:

Analysts predict Fintech could see a further 25% growth in 2022 alone.

Is blockchain a fintech? ›

Blockchain is a core technology in FinTech. The original design of blockchain focused on the cryptocurrency "Bitcoin".

What is lacking in fintech? ›

Key challenges that the fintech industry faces

From user retention and overshooting targets to data security issues, there are some crucial areas enterprises need to focus on to ensure lasting success. Let's go through the top three challenges companies face with their fintech transformation and how to tackle them.

Is crypto a fintech? ›

Cryptocurrency, with its backbone technology and the blockchain, falls under the FinTech umbrella, creating a whole new digital finance sector and revolutionizing it. For instance, FTX and Circle are among the fastest-growing FinTech companies that secured $1.8 billion and $1.5 billion funding rounds in 2022.

What are top 5 fintech companies? ›

Biggest Fintech Companies In The World
  • SoFi Technologies, Inc (NASDAQ:SOFI) Market Cap as of November 18: $4.81 Billion. ...
  • Klarna. Estimated Valuation: $6.7 Billion. ...
  • Wise plc (OTC:WIZEY) Market Cap as of November 18: $7.53 Billion. ...
  • Robinhood Markets, Inc. (NASDAQ:HOOD) ...
  • Coinbase Global, Inc. ...
  • Nubank (NYSE:NU) ...
  • Chime. ...
  • Revolut.
22 Nov 2022

Who are the key players in fintech? ›

Fintech Industry Trends

Amazon, Google, and Microsoft, are already building the digital infrastructure required by wealth managers, and almost three-quarters of global high net worth individuals say they would adopt wealth management services from big tech firms, according to Capgemini.

Which fintech company is fastest growing? ›

More than 400,000 businesses and 30,000 financial institution associates have leveraged the platform to process over $50 billion in lending, making Numerated the fastest-growing fintech SaaS platform on the 2022 Inc. 5,000.

What will the future of fintech look like? ›

Fintechs will shape that future by building technology and capabilities that can be easily integrated into the environments where customers are already engaged. Banking, payments and lending will become embedded experiences, not services.

What is hot in fintech? ›

Payment innovations

Payment innovations in fintech have multiple components. These are mobile payments, contactless payments, mobile wallets, smart speaker systems, identity verification technologies, AI, and machine learning for security.

What are Fintechs doing better than banks? ›

Traditional banks usually have strict collateral requirements for customers applying for a loan. But fintech doesn't typically have such strict requirements, which can make it easier for customers to obtain funding and financial services through these smaller, web-based platforms.

Why Fintechs are the future? ›

FinTech will make transactions faster and more efficient. Blockchain in particular will be a disruptive force and threatens traditional banking if they do not integrate it into their systems,” warns Dr Auth. Already, many banks are partnering with FinTech firms to enhance their service offerings.

What are FinTech three pillars innovation? ›

While the scope of the change is widespread, there are observable patterns common across several verticals. Companies are betting on the promise of “fintech” to innovate along the dimensions of speed, accuracy, and connectivity.

Is FinTech a booming industry? ›

The industry received $24.4bn worth of funding across 150 deals in 2022. That is an increase from 2020 when the industry enjoyed 169 deals worth a total of $7.8bn. So far, there have only been 43 private equity deals going into the fintech industry in 2022. They were worth just over $1.5bn in total.

What is the fastest growing financial sector? ›

Digital assets, or cryptocurrencies, are the newest and fastest growing sector of financial services, and a whole new asset class. As with anything new, this new frontier is largely about trust, credibility and transparency.

Which of the following is latest trends in fintech industry? ›

Artificial Intelligence & Machine Learning

They help banking and financial institutions provide high-quality automated services by quick data processing, enhanced security, like biometrics access, and service enhancements like personal digital assistant and customer support AI chatbots.

What is the next big thing in finance? ›

The world is witnessing innovation and evolution in the financial sector at a pace never seen before – and it is being driven by fintech. India is one of the leading frontiers in this.

What problems is FinTech solving? ›

Access to Payment Options

In the past, companies that wanted to accept multiple forms of payment had to assume some level of risk, rely on a variety of payment processors and pay high fees. Fintech is helping to broaden the payment options available to individuals and expand the payment methods businesses can accept.

What are the top 3 challenges facing the financial industry right now? ›

What are the top challenges facing the financial services industry? The top challenges facing the financial services industry are data breaches, keeping up with regulations, exceeding consumer expectations, and surpassing the competition.

What are two key success factors for a FinTech company? ›

Quality and marketing techniques are the core fundamentals of building a successful fintech startup. Although many factors determine the success or failure of a fintech startup, it is through pinpoint strategies that a new fintech company can survive in an increasingly saturated market.

What are the critical success factors in FinTech? ›

When comparing different jurisdictions, we can identify five key factors (in no particular order) which influence the success of FinTech businesses: talent, ecosystem, market, regulation, and funding.

What makes fintech attractive? ›

Financial inclusion is the primary reason behind the roaring success of such fintech platforms in India. Abhishek Gandhi, Co-founder, CFO and CTO of RupeeCircle.com, says "Technology-driven startups in this space are reaching out to underbanked masses and solving a major problem of financial inclusion.

What is the threat of fintech? ›

Fintech's Operational Risk

Whereas conventional financial firms have the "benefit" of time in their favor, fintech demands everything to happen at breakneck speed. Moreover, fintech teams are most vulnerable in real-time operations management, in which ninety nine percent (99%) of the most significant errors occur.

Will fintech continue to grow? ›

In 2022, there will be nearly 197 million digital banking users in the US alone—over 75% of the adult population. This mass adoption of fintech gives consumers more power than ever while solidifying fintech's reach and ever-growing potential to serve their needs.

Is fintech a threat or an opportunity? ›

The amounts of investments that are being infused by investors-individual, corporate and venture capital firms have improved many aspects that were not possible and attractive for many years for banks. The FinTech firms are increasingly becoming global, posing a significant threat to the existence of the banks.

What is the market size of fintech? ›

$110.59 billion

How much will the fintech industry grow? ›

In the growing firm area, the biggest sector is the fintech industry, and this is true across all sectors. A forecasted annual growth rate of around 25 percent through 2022, reaching US$309.98 billion, was predicted for the global fintech business, according to the analysis.

What is the current state of fintech? ›

In fact, the global fintech market was worth $127.66 billion in 2018, with a predicted annual growth rate of ~25% until 2022, to $309.98 billion.
...
Segmentation by Customer.
CustomerTrends
High Net Worth (HNW)Wealth management Crowdfunding and other investment platforms Real estate
3 more rows

What is the success rate of fintech startups? ›

Around 75% of all fintech startups crash within two decades. Startups in the technology industry have the highest failure rate in the United States.

How big is the global fintech market? ›

$110.59 billion

How large is the fintech industry? ›

The global fintech technologies market size was valued at $110.57 billion in 2020, and is projected to reach $698.48 billion by 2030, growing at a CAGR of 20.3% from 2021 to 2030.
...
U.S.-Canada Toll-free: +1-800-792-5285
Int'l :+1-503-894-6022
Email :help@alliedmarketresearch.com
1 more row

How big is the fintech sector? ›

The Global Fintech Market is valued at USD 112.5 Billion in the year 2021 and is projected to reach a value of USD 332.5 Billion by the year 2028. The Global Market is expected to grow to exhibit a Compound Annual Growth Rate (CAGR) of 19.8% over the forecast period.

How large is fintech? ›

The market's largest segment will be Digital Payments with a total transaction value of US$8,488.00bn in 2022. The average transaction value per user in the Neobanking segment is projected to amount to US$17.28k in 2022.

How fast is fintech growing? ›

FINTECH FOR BUSINESS

That is why global business spending application sales, for example, are expected to reach $31 billion by 2029, growing at a 10.5% compound annual growth rate (CAGR) over the coming years, while accounting software sales are expected to reach $70 billion by 2030, growing at a 20% CAGR.

Is fintech a growing sector? ›

In the growing firm area, the biggest sector is the fintech industry, and this is true across all sectors. A forecasted annual growth rate of around 25 percent through 2022, reaching US$309.98 billion, was predicted for the global fintech business, according to the analysis.

What is the biggest challenge in FinTech? ›

What are the Challenges in the FinTech Industry Today?
  • Fintech Cyber Security. ...
  • Lack of Tech Expertise in Mobile App Development. ...
  • Use of Modern Technologies. ...
  • Industry Regulations. ...
  • Winning and Nurturing User's Loyalty. ...
  • Big Data & AI Integration. ...
  • Blockchain Integration. ...
  • Effective Marketing Tactics to Acquire Customers.
5 May 2022

What are the biggest trends in FinTech? ›

Even if you don't work in the fintech industry, trends pertinent to this sector could still have a profound impact on your business. Embedded finance, alternative financing, ESG and blockchain technology are therefore four key trends to keep a close eye on.

What are the new trends in FinTech? ›

Embedded finance has been a growing trend over the past year and is well-positioned to grow even further as numerous banks look to become service providers to non-bank and non-financial institutions looking to deliver a customer experience or service proposition involving financial services as a component of a larger ...

Why fintech is the next big thing? ›

Financial Inclusion – Fintechs has the potential to reach to next billion. Technology cut the cost of operating small-size products at very reasonable cost of operations. Ability to service Tier 3 and beyond, servicing mid-income Indians is big potential. 2.

Is fintech the fastest growing industry? ›

The global fintech sector has seen an exceptional +182% increase in tech job growth for the first quarter of 2022 – with the top 8 fintech 'mega-hubs' accounting for over 90% of all new fintech jobs advertised around the globe.
...
Average tenure in fintech.
New York2.0 yrs
Singapore1.3 yrs
China0.8 yrs
6 more rows
29 Apr 2022

What is driving the growth of fintech? ›

What's Driving Fintech's Growth? FinTech is one of the most emerging approaches as it is driven by the rapid adoption of cutting-edge technologies in the financial industry services like money transfer, digital payments, funding platforms, alternative lending, financial software and automation.

Will banks be replaced by fintech? ›

It's highly unlikely that FinTech startups will replace traditional banks for a number of reasons. First, consumers still trust banks over startup companies to responsibly hold their money.

Videos

1. AWS Summit ASEAN 2022 - From data to insights: Fintech startups leverage analytics services on AWS
(AWS Events)
2. Hack-A-Tech 2022 Webinar | The What & How: Understanding the Fintech Landscape.
(1337 Ventures)
3. Fintech and Market Data 2022 Roadmap with David Bliss
(Calero-MDSL)
4. The Fintech in Everything
(Techpoint Africa)
5. Fintech 2.0 | The next generation of Financial Technology | Fintech 2022
(Fintech on the block)
6. fintech_devcon 2022 | Explaining payment netting in fintech with Alan Jenson
(Moov Financial)
Top Articles
Latest Posts
Article information

Author: Tish Haag

Last Updated: 12/12/2022

Views: 6412

Rating: 4.7 / 5 (47 voted)

Reviews: 86% of readers found this page helpful

Author information

Name: Tish Haag

Birthday: 1999-11-18

Address: 30256 Tara Expressway, Kutchburgh, VT 92892-0078

Phone: +4215847628708

Job: Internal Consulting Engineer

Hobby: Roller skating, Roller skating, Kayaking, Flying, Graffiti, Ghost hunting, scrapbook

Introduction: My name is Tish Haag, I am a excited, delightful, curious, beautiful, agreeable, enchanting, fancy person who loves writing and wants to share my knowledge and understanding with you.