Fintech Statistics &Amp; Facts To Know-Featured

35 Eye-Opening Fintech Statistics & Facts To Know (2022)

The fintech industry is growing incredibly, but it can be hard to keep track of all the changes and new developments. 

In just a few short years, fintech has disrupted the traditional banking system and made it easier than ever for people to manage their money.

Whether you’re looking for a better way to invest your money or need a loan for your business, there’s a fintech solution that’s right for you.

Check out our latest infographic for 35 eye-opening statistics & facts about the fintech industry. From mobile payments to peer-to-peer lending, we’ve got you covered!

What is Fintech?

Fintech is the combination of financial technologies used to deliver financial services. In other words, it’s the use of technology to make the delivery of financial services more efficient.

Common fintech examples include mobile payments, peer-to-peer payments, online banking, and digital currencies. Fintech is often used to refer to any technology that helps improve or automate the delivery of financial services.

How much is the fintech industry worth?

According to a report by Boston Consulting Group, the global financial services market is forecast to be worth $26.5 trillion by 2022.

The global financial industry, which encompasses companies that use technology to offer financial services such as banking, payments, and insurance, is expected to grow at a compound annual rate of 17 percent through 2022. By 2024, mainland China and the U.S. will account for more than 61% of the global fintech transaction value.

Top 10 Fintech Statistics (Editor’s Choice)

  • COVID-19 harmed the financial position of the majority of fintech companies.
  • In 2019, the global mobile payment market was worth nearly $1.5 trillion.
  • Millennials account for 27% of all forex traders.
  • By 2022, the fintech industry is expected to be worth $310 billion.
  • In 2019, San Francisco Bay was ranked as the top global fintech hub.
  • Fintech companies are used by 23% of all US consumers.
  • By 2025, the total value of digital payment transactions is expected to exceed $10.50 trillion.
  • During the global pandemic, digital lending fell and everything else improved.
  • The lending sector accounts for 10.28% of the top 50 fintech companies.
  • The average annual salary for a fintech employee is $125,000.

35+ Fintech Statistics & Facts

Fintech Statistics-1

1. COVID-19 harmed the financial position of the majority of fintech companies.

According to fintech startup statistics, only 8% of fintech companies reported positive changes in their capital reserve. COVID-19 hurt this segment, according to approximately 51% of respondents.

When it comes to current valuation, 41 percent saw a decrease due to the pandemic, while only 18 percent saw an increase. The difference between a positive and negative impact by COVID-19 on fintech companies isn’t that significant for future fundraising prospects. In particular, 34% said their perspectives had worsened, while 21% said their fundraising positions had improved.

(Source: Cambridge Centre for Alternative Finance)

2. By 2022, the fintech industry is expected to be worth $310 billion.

Global investment in the sector totaled $128 billion in 2018. The industry’s compound annual growth rate (CAGR) is expected to be 25%, according to experts.

In other words, the expected investment in the sector by 2022 is $310 billion. Fintech companies received nearly half of the total venture capital of $254 billion in 2018.

(Source: Toptal)

3. Coronavirus influenced changes in the existing products and services provided by fintech firms.

According to fintech statistics, 30% of fintech companies have deployed additional payment channels, with 15% in the process. Other standard adjustments include changes to onboarding criteria (29%), fee reductions (29%), and payment flexibility (29%). (25 percent ). Approximately 23% introduced commission waivers, while 24% introduced new payment plans.

31% of fintech launched value-added non-financial services in terms of new and updated products. Around 18 percent provided COVID-19 relief funds, while 16 percent hosted COVID-10-specific funding campaigns.

(Source: Cambridge Centre for Alternative Finance)

4. In terms of the number of fintech startups per year, North America leads the way.

While Asia has the most revenue-generating fintech companies, North America has the most fintech startups. According to fintech statistics, there are 8,775 financial services startups in the North American region. There were 7,385 in EMEA (Europe, Middle East, and Africa) and 4,765 in APAC (Asia-Pacific).

It’s worth noting how the number of fintech startups skyrocketed in 2020. In 2018, there were approximately 5,600, 3,500, and 2,800 newly founded fintechs in North America, Europe, and Asia, respectively.

(Source: Statista)

Fintech Statistics-2

5. During the global pandemic, digital lending fell and everything else improved.

According to the Cambridge Center for Alternative Finance’s global fintech statistics, digital lending transaction volumes fell by 8% year on year. Transaction volumes increased in all other segments.

Here are the numbers:

  • 36% of the population has digital custody.
  • Exchange of digital assets – 33%
  • Savings from digital devices – 26%
  • Wealth technology – 24%
  • 21 percent of payments are made digitally.
  • Digital capital raising accounts for 16% of total capital raised.

Other segments that saw an increase in transaction volumes year over year include InsurTech, digital banking, and digital identity, to name a few.

(Source: Cambridge Centre for Alternative Finance)

6. Stripe will be the largest fintech company in the United States in 2020.

Stripe was valued at $35 billion, far ahead of its main competitors Ripple and Coinbase. These were valued at $10 billion and $8.1 billion, respectively. Robinhood, Chime, and Plaid came in at $7.6 billion, $5.8 billion, and $5.3 billion, respectively.

SoFi, Credit Karma, Opendoor, and Root were also among the top ten fintechs in the United States. According to US fintech statistics, these companies were worth $4.8 billion, $4 billion, $3.8 billion, and $3.7 billion in 2020.

(Source: Statista)

7. As of 2021, FirstClose is one of the companies with the most funding.

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

(Source: Growjo)

8. Asian companies have achieved great success on a global scale.

Because most global leaders are based in Asia, the Asian market appears to dominate the global financial technology industry. With its recent $16 billion valuations, Paytm deserves to be mentioned among the best. The eCommerce payment system is based in India and has recently grown in popularity. With a $14 billion valuation and investors such as SoftBank and Uber, Grab is another global leader. Grab is a Singapore-based company that operates in the ride-hailing, food delivery, and digital payment markets.

According to global fintech statistics, GoJek, which originated in Indonesia, is another company among the top fintech businesses. This ride-hailing and online payment service recently received a $12 billion valuation. However, no fintech company can compete with China’s Ant Group. Remember this name the next time you’re wondering who the world’s largest Fintech company is. Its most recent valuation is a whopping $131 billion. This comes as no surprise given that the Ant Group owns the country’s largest digital payment platform, Alipay, which has over a billion customers.

(Source: Insider Monkey)

Fintech Statistics-3

9. The variety of functions and features is the primary reason for the global adoption of fintech.

Approximately 66 percent of fintech users cite features as the primary reason for using such services. Several other major reasons for adopting financial technology companies and services are listed in fintech industry statistics.

  • 55 percent of services are available 24 hours a day, seven days a week.
  • Ease of installing, configuring, and using the service – 53%
  • Rates and charges – 39%
  • Compatibility with day-to-day operations and infrastructure – 38%
  • 31 percent have faith in the provider’s team and reputation.

(Source: EY)

Fintech Statistics-4

10. The lending sector accounts for 10.28% of the top 50 fintech companies.

When we look at the largest fintech companies by sector, it’s clear that lending is the most profitable. Lending accounts for approximately 28% of the top 50 financial technology companies. Wealth, payments, and insurance are three other popular types of fintech companies.

These industries employ eight, seven, and six of the top 50 companies, respectively. Other industries have one, two, or three firms among the top 50 financial technology firms. Accounting, crowdfunding, currency & forex, and investment are among these divisions.

(Source: finleap)

11. London is the undisputed leader in the European financial technology sector.

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

(Source: Findexable)

12. By 2025, the total value of digital payment transactions is expected to exceed $10.50 trillion.

According to the most recent fintech transaction statistics and trends, the total digital transaction value in 2025 will be $10.52 trillion. The total transaction value was expected to exceed $6.68 trillion by the end of 2021.

It was $5.47 trillion in 2020, compared to $3.04 trillion in 2017. These figures indicate rapid growth in the fintech sector, particularly in the digital payments sector. After all, according to our PayPal statistics, this service alone has over 305 million active users and shows no signs of slowing down.

(Source: Statista)

13. Singapore City is Asia’s leading financial services hub.

The destination received a score of 23.621 and was ranked fourth in the world for fintech in 2020. Bangalore and Mumbai, both in India, came in second and third place. Hong Kong, China, and Sydney, Australia round out the top five Asia-Pacific fintech hubs in 2020.

Malaysia is ranked 36th in the world in terms of fintech, according to Findexable statistics. Two of its cities, Kuala Lumpur (17th) and Sandakan (18th), are ranked as Asian fintech hubs (37th).

(Source: Findexable)

14. The average annual salary for a fintech employee is $125,000.

According to fintech employment statistics, the average US fintech salary is $64.10 per hour. Entry-level jobs start at around $87,712, while senior positions pay an average of $187,000.

New York has the highest average salary for fintech employees, at $170,000. Fintech workers in Connecticut and Michigan earn $162,500 and $155,000 per year, respectively.

(Source: talent.com)

15. Johannesburg is Africa’s most important fintech hub.

The South African city received a total score of 9.097, placing it 62nd in the global fintech ranking by city. According to Findexable’s South African fintech statistics, four other South African cities are among the top ten African fintech destinations. Cape Town, Pretoria, Gauteng, and Stellenbosch are among them. South Africa was ranked 37th in the world among the best financial services hubs.

(Source: Findexable)

16. In 2020, global fintech adoption will have reached 64%.

Fintech Statistics-5

When we look at fintech by the numbers, some positive trends emerge. In 2020, the global adoption rate of fintech products was 64%.

Then, 96% of consumers were aware of at least one payment fintech company. In terms of how many consumers use fintech services, 75% use money transfer and payment services, and 48% use insurance services.

(Source: Intellias)

17. The UK’s fintech industry is constantly growing.

According to UK fintech statistics, this industry employs over 76,000 people across the country. The UK’s annual fintech revenue is around £7 billion (approximately $9.57 billion), and the sector has grown by nearly 70% since 2015.

(Source: Cambridge Centre for Alternative Finance)

18. In terms of fintech adoption, China led the way in 2019.

The country’s fintech adoption rate was an impressive 87 percent, which was also recorded in India. According to EY’s fintech statistics, Russia and South Africa both had an 82 percent adoption rate for fintech.

Adoption rates in the United Kingdom, Peru, the Netherlands, Mexico, and Ireland ranged between 70% and 80%. It’s surprising to see that only 46% of Americans are using fintech. Australia outperformed the United States, with a 58 percent adoption rate, while Canada was not included in the calculations.

(Source: EY)

19. In 2019, San Francisco Bay was ranked as the top global fintech hub.

Findexable ranks the top 20 global fintech hubs in its 2019 fintech industry report. San Francisco Bay (United States) took first place with a total score of 80.136. London (United Kingdom) and New York (United States) came in second and third, respectively, with index scores of 54.888 and 36.889.

The following are the remaining cities that made the top ten:

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

(Source: Findexable)

20. Money transfer and digital payments had the highest adoption rate in 2019.

While lending is more popular with investors than other types of financial technology products, digital payments are the most popular with users. The money transfer and payments sector had a 75% adoption rate, which was significantly higher than the borrowing sector’s 27% adoption rate.

Now that you know which fintech service is the most popular, let’s look at the adoption rates of the less popular sectors. According to EY financial statistics, savings and investments are adopted at a rate of 48 percent, while budgeting and financial planning are adopted at a rate of 34 percent. Insurance is currently the least popular fintech product, with a 29 percent adoption rate.

(Source: EY)

21. In 2019, the United States had the highest global fintech index by country.

The country’s overall score was 31.789, and its ranking remained unchanged from 2018. According to Findexable’s fintech industry analysis, the following countries round out the top five global fintech destinations.

  • 23.262 in the United Kingdom
  • Singapore – 19.176 miles
  • 17.343 Lithuanians
  • 16.018 – Switzerland

Australia came in eighth place, followed by Canada. Judo Capital, MoneyMe, and Airwallex are the leaders in financial technology in Australia. According to Canadian fintech statistics, Carta, Borrowell, and Wave are the leading local fintechs.

(Source: Findexable)

22. Every year, approximately $50 billion is invested in the financial technology sector.

Fintech Statistics-6

Blockchain startups raised approximately $5.6 billion in fintech funding in 2017. Founders of a new digital bank will need at least $50 million to get started. As a result, it’s not surprising that over 500 fintechs are launched each year with this funding.

Insurance, budgeting, and financial planning, and savings and investments were adopted at rates of 29 percent, 34 percent, and 48 percent, respectively.

(Source: Intellias)

23. Men rule the world of fintech.

Only 12% of all fintech founders are women, while 88% are men. This graph depicts a significant gender disparity in the financial technology industry. When we look at the gender breakdown of banking leaders, we see that 82 percent are men and 18 percent are women. Finland is encouraging signs of progress in closing the gender gap.

In 2018, 60 percent of the country’s financial services employees were female. Female workers made up 58 percent, 55 percent, and 53 percent of France, the United States, and Japan, respectively. That is, women are represented in the fintech and financial sectors. They are, however, rarely in positions of power.

(Source: Findexable)

24. By 2020, two-thirds of all financial transactions will be conducted online.

According to statistics from the fintech industry, the internet accounted for more than 66 percent of all financial transactions. It is also expected that fintech will enable 2 billion unbanked people to be reached via mobile.

However, not everyone is excited about the rise of fintech and smart technologies. Machine learning is expected to disrupt approximately 40% of banking roles. Meanwhile, according to American banking statistics, over 161 million Americans bank online.

(Source: Intellias)

25. The high adoption of fintech by millennials is one of the key drivers of the sector’s rapid growth.

Millennials are the most likely to use online (92%) and mobile (79%) banking. Then, 73% of this generation is enthusiastic about new financial offerings from tech companies such as Apple, Google, and Amazon. Traditional banks and their services are generally disliked by millennials. According to millennial fintech app statistics, 64% of this age group uses at least one full-service banking app. The same is true for 59 percent of Gen X and 41 percent of Baby Boomers.

(Source: CBInsights)

26. The top reasons for using services from non-traditional banking entities are low-cost offerings and ease of use.

Users will continue to drive the growth of non-traditional fintech companies unless traditional banks improve their game. According to fintech data, customers are drawn to low-cost offerings (70 percent), ease of use (68 percent), and faster service (54 percent ).

They also abandon traditional banks in search of better features (39%) and personalized products (39 percent ). This is especially noticeable among younger customers. In the next 12 months, approximately 48% plan to switch to non-traditional banks.

(Source: Fintech World Report)

27. Millennials account for 27% of all forex traders.

According to millennial fintech app usage statistics, half of all forex traders are in this age group. New investment options provided by financial platforms such as Robinhood are also popular. Millennials are also using fintech applications and services in a big way. Meanwhile, Venmo statistics show that this service is the most popular among this age group.

(Source: Contentworks)

28. Cultural differences and process barriers stymie fintech firms’ collaboration with bank partners.

Approximately 70% of fintech firms never see eye-to-eye with collaborative bank partners. Banks also have complex processes and infrastructures, which contrast with the fast-paced nature of fintech companies. Because of these differences, there are cultural gaps in their collaboration.

Then, more than 70% of fintech firms admit to being frustrated by process barriers, which is another point of contention between fintech brands and banks. According to additional fintech statistics, 50% of these firms lack the funds to scale their operations, and 60% perceive a lack of commitment from partner banks. Over half of fintech executives admit not having found the right bank partner for collaboration.

(Source: Fintech World Report)

29. The main operational challenges of fintech companies are data storage costs, meeting turnover targets, and onboarding costs.

Fintechs reduced their FY 2020 turnover target by 4% due to operational challenges throughout the year. Data storage and onboarding costs increased by 11% and 8%, respectively, year on year. Fintech companies also saw a 1% increase in platform downtime, in addition to agent or partner downtime (5 percent ).

(Source: Cambridge Centre for Alternative Finance)

30. The best collaboration practises between fintechs and incumbent banks include a focus on agility and the establishment of KPIs.

To improve collaboration with incumbent banks, fintech companies must emphasize agility (67 percent) and set and monitor KPIs (67 percent). Other aspects of successful collaboration include governance and risk management (64 percent), leadership involvement (58 percent), and proactive innovation (56 percent).

Finally, 53% of fintech firms believe that cultural compatibility is critical for positive experiences when working with incumbent banks.

(Source: Fintech World Report)

31. To increase global adoption rates of fintech, smart marketing strategies are required.

With the average human attention span of only eight seconds, fintech companies require a strong marketing strategy to thrive. According to the most recent fintech marketing statistics, strong storytelling and relevant influencer marketing produce excellent results.

Then, by 2021, video is expected to account for 80% of all online content. This is another fact that fintech companies should take advantage of.

(Source: Contentworks)

32. In 2019, the global fintech market was valued at $5.504 trillion.

Fintech Statistics-7

It is expected to grow at a CAGR of 23.58 percent until 2025. The increase in the value of the fintech industry can be attributed to investments in technology-based solutions. With a 49.45 percent market share, Asia-Pacific is the dominant region, and it is expected to maintain its dominance in the coming years.

(Source: GlobeNewswire)

33. In 2018, Ant Financial, a Chinese Fintech Giant, raised $14 billion in investment.

This was both a record for the fintech industry and a record in investment history. Over two billion people rely on digital payment services provided by Ant Financial (now Ant Group). The company’s current market capitalization is $313 billion.

(Source: Reuters)

34. Fintech companies are used by 23% of all US consumers.

According to a fintech industry report, all fintech sectors grew during the covid pandemic.

Digital lending increased by 25 percent (from 3 percent to 5 percent), while investing increased by 23 percent (from 6 percent to 10 percent ). Banking increased by 21% (from 17% to 23%), while payments were always widely adopted and increased by only 7%. (from 12 percent to 16 percent ).

(Source: McKinsey)

35. In 2019, the global mobile payment market was worth nearly $1.5 trillion.

According to fintech market research, the global market for mobile payments is growing at an incredible rate.

After reaching $1.48 trillion in 2019, it is expected to grow at a CAGR of 30.1 percent to $12.06 trillion by 2027.

(Source: Allied Market Research)

Fintech Statistics &Amp; Facts To Know

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Sources:

Conclusion

As you can see, many fintech companies are trying to change the financial companies/financial institutions and revolutionize them. Whether or not you believe this is a good thing, the numbers above cannot be ignored.

According to all of these statistics, there’s no question about it: Fintechs are here to stay.

We hope this article was helpful. Thanks for reading!

Thank you for reading 35 Eye-Opening Fintech Statistics & Facts To Know (2022), please browse our other Statistics & Facts articles, including , which may also interest you.

James Allen is a Certified Financial Education Instructor (CFEI), financial advisor, and Certified Public Accountant (CPA). He created BillPin to give people the financial tools they need to make more informed financial decisions. After listening to his mother tell stories about her frugal upbringing and his own experiences working as a financial advisor for almost two decades, James is on a mission to help people change their relationship with money.

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