If you’re interested in the latest fintech statistics, you’ve come to the right place. The fintech sector is booming and it’s showing no signs of slowing down. The US is the country with the most fintech startups in the whole world, while the market has been growing steadily for quite some time.
But what does it actually look like? How big is it, and which countries are leading the way?
Read on to find out.
10 Most Interesting Fintech Statistics and Facts
- America has the highest number of fintech startups in the world.
- The history of financial technology dates back to the nineteenth century.
- As of May 2022, there are 315 fintech unicorns in the world.
- Stripe is the most valuable fintech company in the US.
- 88% of US consumers were using fintech in 2021.
- In 2021, North America had the largest value of VC fintech funding.
- The fintech ecosystem in Latin America and the Caribbean has experienced a 112% growth from 2018 to 2021.
- 42% of Americans have utilized at least one FinTech platform due to Covid-19.
- By 2026, robo-advisors will manage approximately $2.92 trillion in assets.
- The Artificial Intelligence market should reach $1.6 billion by 2030.
3 Major Facts About the Fintech Landscape
Here’s a brief history of finance technology.
1. The history of financial technology dates back to the 19th century.
(Get Smarter)
It all started in 1860 when Giovanni Caselli developed the pantelegraph. The pantelegraph was mostly used in banking transactions to verify signatures.
However, the verification process was both time-consuming and inconvenient. A sheet of paper with around 25 printed words took around 108 seconds to transmit.
2. History of fintech can be split into three main eras.
(The Payments Association)
The first era of fintech (Fintech 1.0) began in 1886 and lasted until 1967. This stage entails establishing the infrastructure that will enable globalized financial services.
The second period, or Fintech 2.0 (1967–2008), started in 1967 when Barclays installed its first ATM. This period also represented the switch from analog to digital finance.
The third period (Fintech 3.0) started in 2008, and it was marked by new technologies, such as Bitcoin.
3. Smartphones played an important role in fintech’s history.
(Aion Digital)
Smartphones have had a significant impact on fintech, as they allowed millions of individuals all over the world to have internet access. This led to the introduction of Google Wallet in 2011 and Apple Pay in 2014.
14 Fintech Stats That Will Surprise You
Which region has the most Fintech companies? How much is the global fintech market worth, and what is the most valuable fintech company in the US?
4. There are 10,755 fintech firms in the United States.
(Statista)
This makes America the world’s most prolific region for fintech startups. In contrast, there are 9,323 fintech startups in Europe, the Middle East, and Africa (EMEA), and 6,268 in the Asia Pacific.
5. In 2021, the global fintech market was worth $112.5 billion.
(GlobeNewswire)
By 2028, the global fintech market size should reach $332.5 billion. I.e., during the forecast period (2022–2028), the fintech market should grow at a CAGR of roughly 19.8%.
In addition to that, experts believe that the Asia Pacific region will dominate the global market.
6. As of May 2022, there are 315 fintech unicorns in the world.
(FintechLabs) (Statista)
Some of the most popular fintech unicorns are PayPal, Stripe, Klarna, Chime, and Bolt. In 2021, the payments sector came out on top in the number of new unicorns, followed by Crypto, DeFi, and the wealth management sector.
7. Ant Financial’s current value is $170 billion.
(Ranked)
Founded in 2014 as Alibaba Group’s affiliate, Ant Financial (or Ant Group) is one of the largest fintech companies in the world. They operate with the largest digital payment platform in the world, Alipay, as well as Yu’e Bao and Zhima Credit.
8. At $95 billion, Stripe is the most valuable fintech company in the US.
(Ranked)
What once started as a payment processing company for small and medium-sized enterprises is today the most valuable fintech company in the US. Based on the latest fintech stats, Stripe is currently worth $95 billion.
9. In 2022, digital payments will have a total transaction value of $8.5 billion.
(Statista)
Digital payments are fintech’s largest segment. What’s more, by 2026, the number of fintech users in the digital payments segment should reach 5,197.44 million.
Next in line are personal finance and alternative lending.
10. In 2021, North America had VC funding valued at $12.8 billion
(Statista)
While North America had the largest value of VC fintech funding, Europe and Asia had a mere $5 and $3.7 billion in VC funding, respectively.
11. The RegTech market is anticipated to be worth $19.5 billion in 2026.
(UCC)
RegTech and blockchain are the fastest-growing categories in the fintech industry. There are several reasons for this. First, these technologies offer a way to streamline financial compliance and reduce costs. Second, they provide a higher degree of security and transparency than traditional methods.
Over the last five years, worldwide investment in RegTech has more than tripled.
As the fintech sector continues to grow, we’ll likely see more companies turning to RegTech and blockchain to stay ahead of the curve.
12. 88% of US consumers were using fintech in 2021.
(Fortune)
Statistics on fintech demographics show fintech usage is most prevalent among Millennials. However, Baby Boomers are not far behind. They are, in fact, the most rapidly expanding fintech consumer group.
13. 55.61% of UK fintech employees are white males.
(Tech Nation)
On the other hand, when it comes to the female population, 28.4% of fintech employees are white, 2.52% are Asian, and a mere 1.11% are Black. The situation is similar in the US, where women make less than 30% of the financial technology industry employees.
14. The largest fintech acquisition was in 2020 when TD Ameritrade bought M&A for $22 billion.
(Statista)
Another large purchase happened in 2021 when the London Stock Exchange Group bought Refinitiv for $14.8 billion. Although a fair amount, it was far lower than the record-breaking deal of 2020.
15. The investment in fintech companies rose dramatically between 2010 and 2019 when it hit $213.8 billion.
(Statista)
On the other hand, fintech statistics from 2020 imply that fintech firms saw investments plummet, falling to $124.9 billion, just to increase again in 2021, reaching $210.1 billion. Almost 80% of investments came from the Americas.
16. 42% of Americans have utilized at least one fintech platform due to Covid-19.
(McKinsey)
Since the start of the pandemic, more than 6% of all financial decision-makers have adopted fintech technologies. Moreover, all fintech categories, from lending to investments and payments, have expanded during the pandemic.
17. The fintech ecosystem in Latin America and the Caribbean has experienced a 112% growth from 2018 to 2021.
(IDB)
When it comes to fintech growth, the latest stats show us that Latin America and the Caribbean’s fintech ecosystem has expanded by a staggering 112% from 2018 to 2021.
Latin American and Caribbean fintech platforms accounted for roughly a quarter of the global fintech market (22.6%).
Regarding the countries, Brazil was the leader with 31%, followed by Mexico (21%), Colombia (11%), Argentina (11%), and Chile (7%).
The Future of Fintech: Exciting Predictions
What does the future hold for this rapidly growing industry?
18. By 2026, robo-advisors will manage approximately $2.92 trillion in assets.
(Statista)
Assets under management in the robo-advisor sector amount to approximately $1.79 trillion in 2022. This figure is projected to grow at a CAGR of 15.20%, reaching $2.92 trillion by 2026.
19. 48% of banking officials believe that Blockchain technology will have the most significant influence on banking in 2022.
(Digipay.guru)
The fintech sector has been completely revolutionized by blockchain technology. In fact, blockchain has become one of the biggest fintech trends in the banking world. On that note, numerous banks and financial institutions started adopting blockchain technology.
20. The Artificial Intelligence market should reach nearly $1.6 billion by 2030.
(GlobeNewswire)
AI is one of the most rapidly developing and popular data-driven technologies. In 2021, the global AI market was worth $87.04 billion. Based on predictions, by 2030, it should experience a CAGR growth of 38.1%.
FAQs
Is fintech the fastest growing industry?
Yes, fintech is becoming one of the fastest-growing sectors in the world. In fact, the investment in fintech firms has increased dramatically over the course of ten years, reaching $210.1 billion in 2021, from $6 million in 2011.
What’s more, almost 90% of Americans were using fintech in 2021.
(Statista) (Fortune)
How many fintech companies are there?
There are currently 10,755 fintech companies in the US. There are 9,323 in EMEA (Europe, the Middle East, and Africa), and 6,268 in the Asia Pacific region (as of November 2021).
In addition to that, there are 315 fintech unicorns in the world.
(Statista)
What is the market size of fintech?
In 2021, the global fintech market was valued at $112.5 billion. By 2028, it should experience a CAGR of 19.8%, expanding to $332.5 billion.
(GlobeNewswire)
Conclusion
In a nutshell, fintech is the fusion of finance and technology. It’s the application of innovative technologies to traditional financial services, making them more efficient, user-friendly, and accessible.
After seeing some impressive fintech statistics and growth rates, it’s clear that fintech is here to stay and is only going to continue to grow in popularity.
