Just how worried or excited should you be of fintech? Just this year, 64% of consumers have used two or more fintech services or platforms, which will only increase in the coming years based on recent fintech statistics (Ernst & Young). With cutting-edge hardware, software, and networks, fintech entices consumers to flock to its camp in droves, and incumbents are forced to follow suit.
The reach of fintech can be pervasive, so deep-diving into the key figures of the industry will enable you to make an accurate assessment of what exactly fintech can mean for your business. We have compiled essential and recent data on this field, from market size to consumer adoption and the goings-on in that underbelly of fintech—blockchain.
General Fintech Statistics
The nature of fintech leads analysts to categorize it into two sectors. These are the “fins”, which are fintech companies with a B2B model, and the “techs”, which are B2C fintech companies. Fins that offer online lending receive the most funding—42% (Accenture).
In general, fintech market data shows growth, though it has encountered a hiccup in 2018. Its growth rate seems slower than anticipated because any new innovation will always encounter resistance. There are also concerns about fraud that force industries to update cybersecurity measures. A movement to blockchain, which decentralizes financial processes, can beef up security in this sense, though some banking CIOs—77% of them, according to recent data—are still hesitant in using blockchain technology (Medium).
How much is the fintech industry worth?
- The global financial sector is expected to be worth US$26.5 trillion in 2022 with a CAGR of 6% (MarketScreener).
- Fintech market share across 48 fintech unicorns is worth over US$187 billion as of the first half of 2019, or slightly over 1% of the global financial industry (CB Insights).
- Fintech reached US$55.3 billion in investments in 2019. To this figure, China contributed a total of US$25.5 billion, of which more than half (US$14 billion) is from Ant Financial of Alibaba Group, known for its Alipay mobile payment service (Accenture).
- 2018 saw 2,196 fintech deals by the end of 2018 and 1,061 of these deals, or almost half of the deals for that year, were from the U.S. (KPMG).
- In 2017, 88% of incumbent financial institutions feared that they would lose money to the disruptive innovation of fintech companies, but 82% plan to partner with fintech startups in the next 3–5 years (PwC).
- They also estimated that they would have a 20% ROI in the same period (Mordor Intelligence).
- In a study in 2015, Goldman Sachs estimates that fintech may eventually disrupt up to US$4.7 trillion of revenue that traditional financial services enjoy (International Trade Association).
How much is the fintech industry growing?
- Fintech has a CAGR of 25–30% in the forecast period of 2019 to 2025 (IndustryArc).
- E-commerce is one of the biggest growth drivers of fintech, with a CAGR of 10–12% (IndustryArc).
- Blockchain and regtech (regulatory technology) are the fastest growing segments of the fintech industry (Grand View Research, Transparency Market Research).
- Blockchain is worth US$70–75 million in 2018, with a CAGR of 50% in the next 6 years (IndustryArc).
- This puts it on track for a US$20 billion worth by 2024 (Transparency Market Research).
- Blockchain can cut regtech costs by as much as US$4.6 billion annually (Quinlan & Associates).
- Regtech is estimated to be worth US$120 billion in 2020 with a CAGR of 52.8% (Reuters, Grand View Research).
- Peer-to-peer (P2P) or digital lending, another segment of fintech, is worth US$43.16 billion in 2018 and expected to rise to US$567.3 billion in 2026 with a CAGR of 26.6% (Reports and Data).
Fintech Market Share by Region Statistics
Fintech market research shows that venture capital investment is growing year after year, but investors are becoming more selective as the industry matures. Recently, as the slight dip in 2018 shows, they point toward choosing to fund fintech companies with a scalable model and demonstrated revenue, especially those in personal finance, payments, banking, lending, and insurance sectors.
Some incumbents, like JPMorgan & Chase Co., Goldman Sachs, and Citigroup, are highly active in fintech funding (CB Insights), but other investors are also looking to inject funds in emerging fintech solutions like robotic process automation, AI, and machine learning. Machine learning studies show that the industry will be worth $80 million in 2025.
- The Americas have the biggest number of fintech startups: 5,779, or 35% of the world’s fintech company market share (Statista, IndustryArc).
- Asia-Pacific fintech startups number at 2,849 (Statista).
- ROW (Europe, Middle East, and Africa) has a combined 3,583 (Statista).
- There are 7 new fintech unicorns in the period of May-July 2019 (CB Insights).
- In the United States and Canada, the biggest fintech segment is digital payment, valued at over US$1.2 trillion (Statista).
- 60% of credit unions and 49% of banks in the U.S. believe that fintech partnership is important (Cornerstone Advisors).
- The rest of the Americas is estimated to have a fintech industry worth US$150 by 2021 (Fintech Futures).
- Fintech market report in Asia, particularly China and India, shows that the region has the fastest growth in fintech consumer adoption (Bloomberg).
- In Q2’2019, India had 23 VC deals representing US$350 million while China only had 8, but valued at US$375 million (CB Insights).
- 61% of Chinese SMEs have adopted at least one fintech service (Ernst & Young).
- Contrast this to the next market, the United States, with only 23% of their SMEs embracing financial technology platforms (Ernst & Young).
- Asia-Pacific regions have a 40% fintech lending market share (Reports and Data).
- North America is next, with 28%, Europe at 27.7%, and ROW at less than 5% (Reports and Data).
- Cash is no longer king in China, with cash ATM withdrawals dropping in 2017 (Bloomberg).
What are examples of fintech companies?
- PayPal is one of the most well-known fintech companies, with a transaction volume of US$333.8 billion in 2019 (Statista).
- Venmo is another, which reached its first US$1 billion transaction volume in January 2016 (Venmo).
- Stripe is the biggest fintech company in the United States and one of PayPal’s biggest competitors, worth US$22.5 billion (Forbes).
- China’s online payment market is dominated by three services that make up 66% of all digital transactions made in China (Alipay, Chinapay, and Tenpay), which make up 29%, 19.5%, and 17.6% of the market, respectively (Bloomberg).
- Ant Financial is the biggest fintech company globally, with an estimated worth of US$75 billion (Investopedia).
Europe, Middle East, Africa
Source: Statista Designed by
Fintech Consumer Adoption Statistics
Ernst & Young’s biennial fintech consumer adoption report shows that consumers worldwide are adopting fintech services much more quickly than anticipated. The last report in 2017 predicted that only 52% of consumers worldwide would have adopted fintech services in 2019, but the estimate proved to be too conservative as the actual figure overshot it by 12 points. This, coupled with the insight that 27% new adopters are concerned with fees and rates—as they would in any traditional financial institution—suggests that fintech market size is not only growing but also maturing.
- In 2019, 64% of consumers worldwide have used one or more fintech platforms, up from 33% in 2017 (Ernst & Young).
- 96% of global consumers are aware of at least one fintech service (Ernst & Young).
- 60% of consumers want to transact business with financial institutions with a single platform, such as social media or mobile banking apps (Ernst & Young).
- 25% of global SMEs have adopted fintech services for use in banking, financing, and financial management (Ernst & Young).
- The biggest market for consumer adoption of fintech is China (87%) and the lowest is Japan (34%) (Ernst & Young).
- The United States’ consumer fintech adoption is 46% (Ernst & Young).
What are fintech products?
- The biggest fintech product is digital payment, which comprises 25% of the fintech ecosystem (McKinsey).
- In the first half of 2019 alone, digital payment has reached US$4.1 trillion (Statista).
- Mobile payments, a subset of digital payments, is on track to break the US$1 trillion mark in 2020. (Statista).
- In 2014, 65% of Chinese mobile users have used mobile payments to pay for a real-life commodity, whereas only 17% of Americans did (Statista).
- The British are leading Europe in mobile payments, with 74% of them using at least one mobile payment platform (Visa).
- A big driver of mobile payment growth is consumer spending on mobile apps, which is valued at US$106 billion in 2018 (Statista).
- 75% of global consumers have used at least one fintech service to pay online or using a mobile application (Ernst & Young).
- 80% of the millennial cohort have used a smartphone at least once to shop online or pay bills (Nasdaq).
- 32% of the same cohort believe that the future will be cashless (Visual Capitalist).
- By 2020, it’s estimated that 90% of mobile users worldwide would have made at least one mobile payment (Bluebird Global).
- Mobile payment services process an average of US$1 billion worth of transactions every day (GSMA).
- On average, a consumer using mobile payment will move US$188 a month (GSMA).
- A study estimates that about 36% of global smartphone users expect to use proximity mobile payments in 2019 (eMarketer).
- A 2016 study found that 50% of banking customers worldwide are using fintech services (CapGemini).
- Mobile banking apps will have a 121% increase in estimated transactions in the next three years but visits to a physical branch will dwindle to just four per year (CACI).
- In 2021, it’s estimated that 1 in 2 people in the world will have access to mobile banking (Juniper Research).
- P2P lending has processed US$9 billion in payments in 2014 (Statista).
- This amount is expected to be close to US$1 trillion in 2050 (Statista).
- 26% of consumers in the U.S. have used P2P lending (Statista).
- There are 54 million P2P lending users in 2014 in the United States, expected to more than double in 2020 to 126 million (Statista).
Fintech Blockchain Statistics
Data in blockchain is practically immutable, which makes this technology attractive to regtech companies for KYC solutions, among other things (The Fintech Times). Additionally, because financial transactions use a clearing authority to track and authorize these transactions, widespread adoption of blockchain can make incumbent financial establishments obsolete. Banks are beginning to invest in blockchain technology for their processes, particularly in authenticating digital transactions like mobile payments and remittances and tracing such transactions with absolute proof of ownership (International Trade Association).
- Blockchain’s net value is around US$20 billion in 2015, or 0.025% of the world’s US$80 trillion GDP (World Economic Forum).
- It’s expected to rise to 10% of the world’s GDP by 2027 (World Economic Forum).
- Blockchain investment in 2017 is up 79% (PwC).
- 84% of business executives believe that blockchain technology will eventually become mainstream (Deloitte).
- 77% of incumbent financial institutions plan to use blockchain as part of their core strategy in the next 3–5 years (PwC).
- 90% of American and European banks are investing in blockchain for security (MedySIF).
- The financial sector invested US$552 million in blockchain in 2018 (MedySIF).
- Blockchain technology can reduce 30% of investment banks’ infrastructure costs, or about US$8–10 billion (Accenture).
- 40 million users now have a blockchain wallet as of June 2019, up from 25 million in June 2018 (Statista).
- There have been 450 million blockchain transactions as of September 2019 (Blockchain).
How many bitcoins are there?
- Bitcoin is the world’s first and most widely adopted cryptocurrency, with a share of 70% as of September 2019 (CoinMarketCap).
- There are over 2,300 active alternative cryptocurrencies or “altcoins” (CoinMarketCap).
- 17.7 million Bitcoins have been mined, which leaves only 3.3 million Bitcoins left (Bitcoinfy).
- Bitcoin miners have earned a total of over US$20.6 million (Blockchain).
- 42% of Bitcoins traded in 2016 was purchased by Japanese yen (JPY) (BTCWires).
- 60% of the world’s Bitcoin mining and 50% of the world’s Bitcoin computing power is in China(Coinshares).
- Antpool mined 20% of the Bitcoins in 2016 to 2017 (BTCWires).
- The biggest altcoin is Ethereum, second only to Bitcoin in volume (CoinMetrics).
- There are more than 4,000 developers working on all cryptocurrencies (Medium).
Source: Blockchain.com Designed by
Maximize These Insights for Your Business Today
Incumbent financial institutions and fintechs are, at the moment, the best of frenemies. As technology redefines convenience, traditional ways of thinking, especially in investments, are increasingly proving to be difficult. At the other end of the spectrum, more people still trust traditional banks and financial services more than newfangled ones. Regulations that keep them in leash after the 2008 financial crisis mean that they are, at the moment, more secure than fintech.
Financial services, however, are inching closer to a revolution that’s akin to the wheel—once finance and technology have become inseparable, it will be overwhelmingly hard to imagine a time when they are mutually exclusive and competing for the same space. The worldwide adoption of mobile technology and the ubiquity of internet access propel the adoption of technologies—including big data and the internet of things—to suit a changing global demographics, but this is true for other industries as well and not exclusive to financial markets.
Curiously enough, blockchain sits at a juncture between finance and other industries. Other applications can use blockchain and not simply to authenticate, track, and authorize financial transactions. Fortunately, you don’t need to wait for blockchain to become mainstream to utilize the right financial solutions for your business; it’s already here.