Fintech, the combination of finance and technology, is a thriving sector that offers numerous opportunities for entrepreneurs and business leaders. The integration of digital transformation has revolutionized the way we deal with finance, providing faster and more efficient solutions. This has created a goldmine for businesses and startups that can add value and solve people’s pain points while generating profits. The shift to digital banking is a clear example of how fintech has transformed customer interactions and streamlined operations. The following statistics highlight the current state of fintech and its projected growth by 2023:
– Artificial intelligence (AI) and machine learning (ML) will play a significant role in fintech, with 90% of global fintech companies already heavily relying on these technologies.
– Asia has emerged as a major player in the fintech market, accounting for 24% of global fintech deals by the second quarter of 2022.
– Digital banking usage in the US has reached 65.3% of its residents in 2022, while 9 million households without bank accounts spend an estimated $200 to $500 annually on alternative financial services.
– The insurance industry is expected to save almost $1.3 billion by 2023 through the use of artificial intelligence.
– Information security and privacy are identified as the main threats to the rise of fintech, according to 56% of professionals.
The fintech sector has also attracted significant investment and funding, with the following statistics showcasing its potential:
– In 2022’s first quarter, global fintech funding deals reached 1,482, marking a 20% growth from the previous year.
– Insurance fintech enterprises secured $3.8 billion in funding in 2020, while funding for the wealth tech domain experienced a surge of 36% quarter-on-quarter in 2022.
– The global venture capital investment in fintech reached $92.2 billion in 2022, with over 1,200 deals recorded in the second quarter alone.
– The US led in fintech investments, accounting for 38% of the market by the end of the second quarter of 2022.
Fintech applications have gained widespread popularity, with the following statistics highlighting user preferences and adoption:
– Money management tools like GoHenry and M1 Finance have experienced significant growth and funding, with GoHenry experiencing a search growth surge of 1,260% and M1 Finance securing $323 million in its series E investment round.
– Robinhood, a popular investment app, has over 9.1 million users as of 2021, while 23 million people used Robinhood by the second quarter of 2022.
– The estimated transaction value per fintech user is projected to exceed $29,600 by 2027.
– Stripe, a fintech enterprise with a valuation of $95 billion, is currently the most valuable fintech company in the US.
The fintech sector is also witnessing significant growth and adoption, as seen in the following statistics:
– The US saw a 54% increase in investment deal value in 2019, reaching over $26 billion.
– Banks are increasingly adopting chatbots, with predictions suggesting they will save $7.3 billion by 2023.
– The Indian fintech market produced 15 unicorns, or startups valued at over $1 billion, with a total investment of $8 billion in 2021.
– The global venture capital investment in fintech firms climbed from $48.9 billion in 2020 to $131.5 billion in 2021.
In terms of people’s preferences and trust in fintech, the following statistics provide insights:
– Jack Dorsey, the former CEO of Twitter, holds a significant stake in the fintech firm Square.
– The number of advertised fintech jobs in the US increased by 223% in 2021.
– A significant percentage of adults in the US are underserved by traditional banks, leading to a growing demand for alternative banking services.
– A considerable portion of the US population lacks access to government-issued IDs, posing challenges in acquiring standard bank accounts.
– Fintech firms resonate more with younger generations, who trust them more than traditional banks.
Lastly, the adoption of blockchain technology in fintech is gaining traction, as seen in the following statistics:
– Two out of every five financial services firms believe blockchain will revolutionize service delivery.
– Global investments in blockchain and cryptocurrency enterprises reached $1.2 billion in 2020.
– By adopting blockchain, costs can be reduced by 50% in the fintech sector.
These statistics paint a clear picture of the current state and future prospects of the fintech sector, showcasing its potential for growth and disruption in the coming years.