Fintech Statistics

19.08.2021
Milena

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)

Number of Fintech Startups by Region Between 2018 and 2021

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)

The Largest US Fintech Companies By Value in Billion USD

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)

Distribution of the World's Top 50 fintech Companies by Sector and Customer Focus

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.

(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)

Consumer Fintech Adoption Rates Worldwide

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 Categories Ranked by Adoption Rate

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. Expects 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.

(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.

(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.

  • 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.

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

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