Fintech statistics point out that these firms are some of the fastest-growing ones 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 accurate scale of the rising fintech industry, we researched the most incredible data 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 — 2022 (Editor’s Choice)
- 50% of fintech executives say they haven’t found the right collaborative partner
- By 2026, the worldwide fintech market will reach $324 billion
- There were 66 fintech unicorns valued at $248 billion in the Q2 of 2020
- In 2021, Fintech companies represented 14% of all VC deals
- In 2020, US venture funding for fintech blockchain companies was $0.6 billion
- By 2025, AI in fintech will reach $22.6 billion
- VC investments in fintech reached $23.1 billion in the first half of 2020
- Almost 77 million people in the US say they have or will open a neobank account
General Fintech Trends and Stats
Global finance leaders have regarded fintech as an excellent disruptor for years. 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 phenomenon:
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. That’s because only a 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 the financial industry growth rate will cost them customers. Moreover, around half of them have expressed “high levels of fear” of fintech companies like Apple Pay, Stripe, and PayPal.
2. 50% of fintech execs claim they haven’t found the right collaborative partner.
(Payments 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.
Namely, banking industry statistics tell us that around half of fintech execs haven’t found the right collaborative partner for them.
That said, 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 global fintech market will reach $324 billion by 2026.
(Market Data Forecast, Yahoo Finance)
The fintech market size in 2020 was valued at $7301.78 billion. Furthermore, projections for the market size of fintech are optimistic, to say the least. However, this isn’t too surprising given the massive size and growth of the most prominent fintech companies.
For instance, by 2026, the global fintech market is expected to be worth $324 billion. Moreover, between 2022 and 2027, the CAGR will probably be a hefty 25.18%.
4. The fintech adoption rate is 64%.
Fintech companies will continue to have more opportunities to attract customers to their platforms. But at the moment, the adoption rate for this technology is around 64%, according to recent research.
5. In Q2 of 2020, there were 66 fintech unicorns with a valuation of $248 billion.
They are comprised of global VC-backed fintech companies with over $1 billion in private market valuations. Moreover, some of the biggest fintech companies invest heavily in payment products, not only in North America but in emerging markets like India and Brazil.
6. One of the 500 quickest-growing fintech companies, Patch, has received $139.7 billion in funding.
Fintech has grown rapidly in recent years. Namely, perhaps the best piece of evidence of that claim is the massive funding these companies have gotten.
However, of the 500 fastest-growing fintech companies, Patch has the highest received funding. In addition, FirstClose, Acrisure, and Sunlight Financial are the next three most heavily funded fintech startups. They received $34.7 billion, $3.5 billion, and $2.15 billion, respectively.
7. In the first half of 2020, VC investments in fintech reached $23.1 billion.
Since 2010 the VC investments in these companies globally have increased significantly. In fact, between 2010, when it was $1.89 billion, and 2019 when it was $53.3 billion, it increased by $51.41 billion.
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. In other words, only a quarter of investors are confident in incumbents’ ability to do so.
9. Fintech companies accounted for 14% of all VC deals in 2021.
Furthermore, fintech companies represented 18% of the investment. The business and consumer shift toward the digital that the COVID-19 pandemic had imposed encouraged interest in fintech startups, according to the fintech industry report from 2021.
10. By the end of H1 of 2021, Europe hit the record in annual investments ($11.75 billion) into European fintech.
That surpassed the previous record raised in the first half of 2019, which was $10.5 billion. In detail, the five European fintech companies with the biggest fundings were N26, Klarna, Revolut, Mollie, and SumUp.
A Slightly Deeper Fintech Industry Analysis
11. The mobile payment transaction value will increase to $2,051 by 2023.
(The Fintech Times)
Back in 2019, the mobile contactless payment market was worth $1.198 trillion. However, by 2023, it is forecast to rise by 40%, reaching $3.516 trillion. Moreover, it is estimated to grow to $4.6 trillion by 2025.
12. Global annual sales in the fintech insurance market will reach $15,343.3 million by 2023.
(The Business Research Company, Forbes)
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. Namely, come the year 2025, this sector will be worth $15,343.3 million.
Moreover, as car insurance companies take a big part of many families’ budgets, many fintech car insurance companies now provide ways to shop for and pay for insurance.
13. 77% of people make payments using one or more mobile avenues.
We’ve touched on how big fintech is in market value and shares. However, there might be a better way to convey the fintech market size. For example, more than three-quarters of people use at least one mobile payment platform.
All in all, Millennials are the most likely to adopt mobile payment preferences. As a matter of fact, around 91% of them have paid for something with their mobile device in recent years.
14. 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 it has no brick-and-mortar establishment you can visit.
Generally speaking, neobanks are becoming wildly popular in the United States. In fact, around 77 million US citizens have already opened a neobank account (or said they intended to do so), fintech statistics reveal.
15. In 2019, there were 950 million proximity mobile payment transaction users globally.
As expected, the number of people using mobile payments has been steadily growing over the years. Therefore, estimations show that there will be around 1.31 billion proximity mobile payment transaction users globally by 2023.
16. E-wallets comprise 22% of worldwide POS spending, as per fintech stats.
(Payments Cards and Mobile)
The use of e-wallets at POS terminals is quickly becoming more commonplace. Moreover, the smartphone is becoming the new wallet. For instance, by 2024, it is projected that e-wallets will represent around 30% of consumer payments.
17. In 2019, around 28% of people digitally opened up a bank account.
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. In other words, around 85% liked their mobile banking experience.
18. 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.
19. Android mobile banking apps have a 73% user satisfaction rate.
Android has the highest satisfaction rate for financial apps of all the mobile operating systems. Namely, around 73% of users have reported being happy with how these apps work (in contrast with 63% of IOS users).
Fintech Blockchain Facts and Statistics
20. 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, and that’s why much more money will go into this blockchain application soon.
For example, the total revenue for blockchain asset tracking should reach $4.5 billion by 2023, a 139% growth from 2019.
21. Blockchain for KYC purposes could save banks over $160 million every year.
The unique advantages blockchain brings to the table have the potential to save banks outstanding amounts of money. In fact, blockchain can decrease the cost and human effort in KYC compliance. Notably, it could lower personnel requirements for banks by 10%.
22. As per a fintech industry report, US venture funding for fintech blockchain companies was $0.6 billion in 2020.
The coronavirus pandemic put most industries on hold, and investment in fintech blockchain was not spared from this catastrophe.
More specifically, in 2020, VC for fintech blockchain companies was $0.6 billion. That’s quite a bit less than in 2019, which saw $1 billion.
23. In 2020, banking accounted for 29.7% of the blockchain market worldwide.
Fintech stats reveal that blockchain benefits greatly from applications coming from the financial industry. Namely, almost 30% of blockchain’s market worth comes from the financial sector. Furthermore, process manufacturing represented 11.4% of the global blockchain spending.
24. 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.
For instance, 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.
25. 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. In general, this number presents major growth of crypto users in the last five years.
26. In the first half of 2019, crypto and blockchain saw $1 billion in worldwide private investment.
Overall, 2018 was the most profitable year for cryptocurrencies and blockchain tech in a long time, with more private investment by count than ever before. In other words, that year, private investment worldwide peaked at $5 billion.
27. In 2021, the US was the place where crypto hashers mined Bitcoin most commonly.
As per fintech market research, the rise of cryptocurrency, particularly Bitcoin, has been one of the more standout fintech trends.
In detail, the top global Bitcoin mining pools all came from China in 2021. As a matter of fact, five of its pools accounted for more than 50% of the cryptocurrency’s total hash.
28. Over 200 banks and payment providers worldwide have tested or used Ripple’s tech with their payment systems.
Ripple has shown itself to be a valuable asset for traditional banks and other payment providers. In fact, RippleNet is now used by some of the industry’s biggest financial institutions, including Santander, SEB, Western Union, and Moneygram.
Artificial Intelligence in Financial Technology Statistics
29. Financial challengers have a 15% chatbot adoption rate, while incumbent institutions’ rate is 4%.
While stats on fintech consumer adoption 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.
30. For every $100 billion invested in AI, banks can get an additional $300 million in revenue.
Artificial intelligence can significantly cut operation costs, resulting in tremendous amounts of money saved.
Namely, if current fintech industry 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 use machine learning.
As the data shows, machine learning is a subset of AI that financial services are particularly fond of. As a matter of fact, as many as 70% of them use machine learning in one form or another.
More specifically, they use machine learning to detect fraud, predict cash flow events, and fine-tune credit scores.
32. Fintech statistics reveal that the market for AI in fintech will reach $22.6 billion by 2025.
In 2019, the worldwide AI in fintech market reached $6.67 billion. Furthermore, the market for artificial intelligence in fintech should experience remarkable growth in the coming years. Notably, the CAGR for this sector in the 2020-2025 period should be 23.37%.
33. US banks waste $70 billion a year on compliance.
(Alan Turing Institute)
Compliance and identity verification cost banks jaw-dropping amounts of money. But if AI replaced human workers here, banks could save up to $70 billion annually.
Generally speaking, many banks have faced massive fines for failing to end illegal financing. Therefore, many banks started relying on AI techniques to enhance their operations.
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)
Recently, the need for mobile solutions and people who can create them has been booming. For example, 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. By November 2021, around 10,755 fintech startups existed in the United States.
More than 10,700 startups are doing business in the United States. In addition, a further look into the fintech facts for 2021 reveals that the EMEA region has around 9,323 startups, followed by 6,268 in the Asia Pacific region.
36. 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. In fact, that honor will go to the APAC region with around 51% of the share. As for the EMEA region, it will account for 15.4% of the market share.
The whole fintech industry overview above points to a sharp, overwhelming rise in 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.
Overall, the future of fintech looks pretty positive. It may even reach a position where it topples the rule of traditional banks within our lifetimes.
People Also Ask
Judging by all the available data, the market for financial technologies is extremely large. There’s still no official data on the fintech industry size in 2021, but we have the numbers for 2020. Namely, the fintech market size was valued at $7301.78 billion.
Not only that, but the fintech market is also experiencing a rapid growth rate. Namely, by 2026, the Compound Annual Growth Rate (a.k.a. CAGR) for this industry will be 26.87%.
There are many major companies in the fintech landscape. That said, according to Fintech Magazine, the most prominent ones are Robinhood, Stripe, Kraken, Klarna, Wise, Current, Chime, Gemini, Carta, and BlockFi.
However, the number one fintech company is Robinhood — a financial services company allowing users to exchange cryptocurrencies and trade stock commission-free. Moreover, the app has about 22.5 million users, and the company is worth around $11.7 billion.
Trends toward data, increased information, mobile banking, and more accurate analytics and access decentralization provide possibilities for all of the user categories to interact in unprecedented ways.
Although one general categorization divides users into consumer and business users, the more specific categorization is more popular. Namely, the four fintech user categories are B2B for banks, their business clients, B2C for small businesses, and consumers.
Right now, there are thousands of fintech companies in the world. In detail, in the United States alone, around 10,755 startups are in business at the moment. Given that, the US currently has the most startups related to fintech in the world.
Meanwhile, fintech statistics note that the EMEA region (comprising Europe, the Middle East, and Africa) has approximately 9,323 startups in the fintech sector. The Asia Pacific, meanwhile, contains around 6,268 fintech startups.
- Alan Turing Institute
- Business Insider
- Business Wire
- CB Insights
- Fintech Ireland
- Juniper Research
- Market Data Forecast
- Oliver Wyman
- Payments Cards and Mobile
- Payments Cards and Mobile
- Sage Journalism
- The Business Research Company
- The Fintech Times
- The PJF Group
- University of Cambridge
- Yahoo Finance