Fintech statistics point out the fact that these firms are some of the fastest-growing companies in the world. In fact, they’re growing so quickly that old banking institutions feel pushed to invest in the technology themselves.
So, to better illustrate the true scale of the rising fintech industry, we researched the most incredible statistics and compiled them for you in the list below.
These stats will help you better understand the fintech industry as it was, is, and will be.
So give this list a good read if you’re interested in learning more about this burgeoning sector.
Fintech Stats & Updates – 2021 (Editor’s Pick)
- 76% of traditional banks feel fearful about new fintech platforms
- Fintech has a 64% adoption rate
- Fintech startups got $128 billion in worldwide VC
- 77% of people make payments using their mobile devices
- 91% of Gen Xers understand the perks of mobile banking
- Blockchain has the potential to save banks more than $27 billion by 2030
- 70% of financial services companies use machine learning
- There are around 10,605 fintech startups in the United States
General Fintech Facts and Stats
For years now, global finance leaders have regarded fintech as a great disruptor. Time has proved their predictions right, as the last decade has seen more progress in finance technology than the past hundred years.
Let’s take a look at the numbers behind this trending phenomena:
1. 76% of traditional banks fear new fintech platforms.
While the public appreciates the perks fintech brings, traditional banks feel a little wary of this financial challenger. Few of them can offer the same convenient services that fintech platforms do. In that sense, their fear of losing customers is justified.
We see this anxiety reflected in the stats: more than three/quarters of banks fear fintech growth will cost them customers. Moreover, around half of them have expressed “high levels of fear” of fintechs like Apple Pay, Stripe, and PayPal.
2. 50% of fintech execs claim they haven’t found the right collaborative partner.
(Payment Cards and Mobile)
A possible solution for traditional banks’ fears of fintech is to cooperate with it, rather than directly oppose it.
However, many fintech executives are struggling to find partnerships with banks.
Banking industry statistics tell us that around half of fintech execs haven’t found the right collaborative partner for them.
One reason for this low level of cooperation may have to do with low agility on the banks’ part. Apparently, only 21% of them have the agile capabilities to work with fintech companies effectively.
3. The adoption rate of fintech is 64%.
Fintech companies will continue to have more and more opportunities for attracting customers to their platforms. But at the moment, the adoption rate for this technology is around 64%, according to our fintech market research.
4. In late 2018, there were 39 VC-backed fintech unicorns worth $147.37 billion combined.
The fourth quarter of 2018 saw 39 new fintech unicorns. Combined, all of these companies were worth $147.37 billion at that time.
5. 7 of the 500 quickest-growing fintech startups received a total of $10 billion in funding.
Fintech has grown rapidly in recent years. Perhaps the best piece of evidence of that claim is the massive funding these companies have gotten.
Of the 500 fastest growing fintech companies, 7 of them received funding worth a whopping $10 billion combined.
LendingPoint, LANDBAY, and Chime were the three most heavily funded fintech startups. They received $1.7 billion, $1.6 billion, and $1.5 billion respectively.
6. The global fintech market will reach $305.7 billion by 2023.
Projections for the market size of fintech are optimistic, to say the least. Given the massive size and growth of the biggest fintech companies in the world, this isn’t too surprising.
By 2023, the global fintech market is expected to be worth $305.7 billion. In the period between 2013 and 2023, the CAGR will most probably be a hefty 22.17%.
7. Fintech startups received $128 billion in worldwide venture capital.
Of all the venture capital amassed in 2018 (that being $254 billion), fintech accounted for $128 billion – half of the total VC!
8. Only 25% of investors feel confident in banks’ plans for digital transformation.
Financial services industry statistics warn that investors aren’t enthused about banks’ digital transformation strategies. Apparently, only a quarter of investors are confident in incumbents’ ability to do so.
9. Funding for fintech blew up by 82% from 2017 to 2018.
In terms of funding, the 2017-2018 period was incredibly fruitful for fintech.
Between these two years, funding for this industry increased by a staggering 82%. In 2018, funding for fintech hit $32.6 billion.
A Slightly Deeper Fintech Industry Analysis
10. The mobile payment market will reach $6,685,102 million by the end of 2021.
The mobile payment segment of fintech is especially large. By the time 2021 is over, it will be worth $6,685,102 million.
But even more impressive is the projected transaction value from 2021 to 2025. In that period, a whopping total of $10,520,219 million will change virtual hands thanks to online payment platforms.
11. Global annual sales in the fintech insurance market will reach $15,343.3 million by 2023.
(The Business Research Company)
You’ve already seen the fintech industry size is nothing to joke about. But of all the segments of fintech, insurance might prove to be the market with the most growth potential. Come the year 2025, this sector will be worth $15,343.3 million.
12. 77% of people make payments using one or more mobile avenues.
We’ve touched on how big fintech is in terms of market value and shares and such.
However, there might be a better way to convey the fintech market size. Namely, more than three-quarters of people make use of at least one mobile payment platform.
Millennials are the most likely to adopt mobile payment preferences. Around 91% of them have paid for something with their mobile device in recent years.
13. 76.9 million Americans say they have or will open a neobank account.
For those not in the know, a neobank is a completely digital bank, meaning ih has no brick-and-mortar establishment you can visit.
Neobanks are becoming wildly popular in the United States. Around 77 million U.S. citizens have already opened a neobank account (or said they intended to do so), fintech statistics reveal.
14. There were roughly 1.3 billion mobile payment users globally.
As expected, the number of people making use of mobile payments has been steadily growing over the years. Around 1.3 billion people used mobile payment tech in 2020, compared to 0.4 billion in 2015.
15. Ewallets will comprise 28% of all POS payments in 2022.
The use of e-wallets at POS terminals is quickly becoming more commonplace.
In 2018, 16% of POS payments involved e-wallets, as the relevant fintech stats show us. But by 2022, the percentage should grow to 28%.
16. In 2019, around 28% of people opened up a bank account with their mobile device.
Back in 2019, a little under 30% of bank customers used their smartphones and tablets to access their accounts.
While it isn’t a tremendous percentage per se, the satisfaction rate of these users is much more impressive. Around 85% liked their mobile banking experience.
17. 91% of Gen Xers have reported seeing the benefits of mobile banking.
Mobile banking statistics seem to refute the myth that fintech is for the younger generations.
Apparently, over 90% of Gen Xers understand and appreciate the benefits of mobile banking. Meanwhile, 79% of Baby Boomers feel the same way.
18. Android mobile banking apps have a 73% user satisfaction rate.
Of all the mobile operating systems out there, Android has the highest satisfaction rate for financial apps. Around 73% of users have reported being happy with how these apps work (in contrast with 63% of IOS users).
Fintech Blockchain Statistics
19. Between 2019 and 2023, revenue for blockchain asset tracking should grow by 139%.
Asset tracking via blockchain could prove far more effective than traditional methods.
That’s why much more money will go into this application of blockchain in the near future.
The total revenue for blockchain asset tracking should reach $4.5 billion by 2023, a 139% growth from 2019.
20. Blockchain could save banks over $27 billion by 2030.
The unique advantages blockchain brings to the table have the potential to save banks amazing amounts of money.
Financial technology statistics regarding blockchain state that, by 2030, blockchain could save banking institutions more than $27 billion.
21. U.S. venture funding for fintech blockchain companies amounted to $0.6 billion in 2020.
The coronavirus pandemic put most industries on hold. Investment in fintech blockchain was not spared of this catastrophe.
In 2020, VC for fintech blockchain companies was $0.6 billion. That’s quite a bit less than in 2019, which saw $1 billion.
22. Banking accounted for 29.7% of the blockchain market worldwide.
Fintech stats reveal that blockchain benefits a lot from applications coming from the financial industry.
Namely, almost 30% of blockchain’s market worth comes from the financial sector.
23. Blockchain business value will surge to over $3.1 trillion by 2030.
This statistic indicates that blockchain may reshape entire economies, and fintech businesses will be at the forefront of this revolution.
By 2025, the business value brought by blockchain should grow to a little over $176 billion. But by 2030, the value should skyrocket to an excess of $3.1 trillion, according to fintech statistics.
24. There were 101 million identity-verified crypto users in 2020.
(University of Cambridge)
The total number of user accounts at service providers was around 191 million, but only 101 million people were active users.
This number presents major growth of crypto users in the last 5 years. For example, 2018 saw only 139 million crypto accounts.
25. 84% of U.S. crypto hashers mine Bitcoin.
(University of Cambridge)
The rise of cryptocurrency, and Bitcoin, in particular, has been one of the more standout fintech industry trends.
For now, Bitcoin is by far the most popular crypto among U.S. hashers, with 84% of them mining it.
To compare, Bitcoin Cash, the second-most mined crypto, only has 38% of hashers mining it.
26. In 2018, crypto and blockchain saw $5 billion in worldwide private investment.
2018 was the most profitable year for cryptocurrencies and blockchain tech in a long time. That year, private investment worldwide peaked at $5 billion.
27. Worldwide private investment in blockchain and crypto dipped to $1 billion in 2019.
Looking at the crypto financial industry growth rate in recent years, we notice a huge private investment slump in 2019. Investments amounted to $1 billion that year, compared to $5 billion in 2018.
28. Over 200 banks and payment providers worldwide have tested or implemented Ripple’s technology with their own payment systems.
Ripple has shown itself to be a valuable asset for traditional banks.
RippleNet is now used by some of the industry’s biggest financial institutions, including Santander, SEB, Western Union, and Moneygram.
Artificial Intelligence in Fintech Statistics
29. The market for AI in fintech will reach $22.6 billion by 2025.
The market for artificial intelligence in fintech should experience fantastic growth in the coming years. The CAGR for this sector in the 2019-2025 period should be 23.37%.
30. For every $100 billion invested in AI, banks can get an additional $300 million in revenue.
Artificial intelligence can greatly cut costs of operation, resulting in tremendous amounts of money saved.
If current fintech trends concerning AI adoption persist, banks could see an extra $300 million in revenue for every $100 billion invested.
31. 70% of all financial services firms are using machine learning.
Machine learning is a subset of AI that financial services are particularly fond of, as the data shows. As many as 70% of them make use of machine learning in one form or another.
32. Financial challengers have a 15% chatbot adoption rate, while incumbent institutions’ rate is 4%.
While fintech consumer adoption statistics remain high, incumbent banks struggle to adopt new technologies compared to “fresh” fintech companies.
For example, the latter has an advanced chatbot adoption rate of 15%, as opposed to 4% of the former.
This trend is visible even beyond AI tech. For instance, the adoption disparity for bill splits is 27% vs 2% and 26% vs 2% for virtual debit cards.
33. U.S. banks waste $70 billion a year on compliance.
(Alan Turing Institute)
Compliance and identity verification cost banks jaw-dropping amounts of money. If AI replaced human workers here, banks could save up to $70 billion annually.
Fintech Job Statistics and Other Intriguing Facts
34. App developers in the US fintech sector earn $131,000 per year on average.
(The PJF Group)
In the United States, app devs working in fintech earn around $131,000 per year on average. That’s well above the national wage average.
35. Around 10,605 fintech startups exist in the United States.
More than 10,000 startups are doing business in the United States. A further look into the fintech startup statistics reveals that the EMEA region has around 9,311 startups, followed by 6,129 in the Asia Pacific region.
36. In 2018, blockchain was the fastest-growing demanded skill on Upwork with a 3,500% increase year-by-year.
Blockchain development became extremely popular almost by night. In 2018 alone, the demand for this skill exploded by 3,500%.
37. By 2024, the Americas will account for roughly 33.5% of the worldwide fintech market share.
While considerable, the Americas’ 33.5% global fintech market share won’t be the largest. That honor will go to the APAC region with around 51% of the share.
All of the above statistics point to a sharp, overwhelming rise of fintech. As incumbent financial institutions try to figure out and make the best of this fact, the public is adopting these new technologies at remarkable rates.
The future of fintech seems very positive. It may even reach a position where it topples the rule of traditional banks within our lifetimes.
Frequently Asked Questions (FAQ)
How big is the fintech market?
Judging by all the available data, the market for financial technologies is extremely large. Current predictions estimate the market will balloon to $305.7 billion by 2023.
Not only that, but the fintech market is also experiencing a rapid growth rate. The Compound Annual Growth Rate (a.k.a. CAGR) for this industry in the period between 2012 and 2023 will be 22.17%.
Does fintech pay well?
Jobs in the fintech industry can pay very well, depending on the specific job you do. For example, app developers working in fintech can earn over $130,000 a year, which is far above the national average.
Blockchain developers in the same industry also make around $130,000 per year. Meanwhile, cybersecurity experts and analysts can make $100,000 or so on an annual basis.
How many fintechs are there in the world?
Right now, there are thousands of fintech companies in the world. In the United States alone, around 10,605 startups are in business at the moment. The U.S. currently has the most startups related to fintech in the world.
Meanwhile, the EMEA region (comprising Europe, the Middle East, and Africa) has approximately 9,311 startups in the fintech sector. The Asia Pacific, meanwhile, contains around 6,129 fintech startups.
Who are the major players in fintech?
There are many major companies in the fintech landscape. Some of the most prominent include:
- Klarna Bank AB
- Social Finance, Inc., Adyen
- Qudian Inc.
- Nexi SpA
- Robinhood Markets, Inc.
- Afterpay Limited
- Google Pay
- PayPal Holdings, Inc.
- Ant Group
- Avant, LLC.
Ant Financial is likely the largest fintech company in this group. It owns a wide range of financial services. For example, Ant Financial is the owner of Alipay, one of the biggest online payment platforms in the world.
Which is the most used fintech service?
At the moment, PayPal seems to be the most used fintech service in the world. With that in mind, Square is quickly growing to replace it, although it still has a long way to go.
In terms of actual services, the most prominent applications of fintech include:
- automated investment apps
- online lending businesses
- mobile payments
- crowdfunding platforms
Regtech and insurtech are also prominent services in the fintech sector, as we learn from the relevant fintech statistics. However, they aren’t as commonly used as the above-mentioned ones.
- Alan Turing Institute
- Business Insider
- Business Wire
- Juniper Research
- The Juniper Research
- Juniper Research
- Oliver Wyman
- Payment Cards and Mobile
- Sage Journalism
- SuperData Research
- The Business Research Company
- The PJF Group
- University of Cambridge