Market research report providing an overview of the fintech industry, including statistics, trends, and companies in the ecosystem
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Financial services are undergoing a sea change as a result of the introduction of game-changing technology such as artificial intelligence, blockchain, and alternative lending.
The incumbents are aware of the benefits of running their processes on digital rails, and as a result, the majority of them are either rolling out digital services of their own to directly compete with tech-savvy startups, or they are acquiring them and partnering with them to leverage their capabilities.
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Fintech is a broad term that refers to technology-driven disruptions in the financial services industry. It describes situations in which financial companies and startups use artificial intelligence (AI) and other forms of technology in their day-to-day operations. In recent years, we have witnessed an explosion of activity in the fintech industry.
Tech-savvy startups and traditional financial institutions (FIs) are jumping headfirst into the financial technology (fintech) business at the same time, reflecting the growing trend of customers to choose alternative, digital methods of managing their finances. The transition to digital should also be brought to the attention of investors.
Fintech Market Stats
Over the next four years, it is expected that the global market for fintech would expand at a compound annual growth rate of over 20%. According to GlobeNewswire’s estimates, the value of the market should reach approximately 305 billion dollars by the year 2025.
In addition, 2017 was a pivotal year for the financial technology (fintech) industry, as the line that was once delineated between traditional financial services and fintechs became increasingly hazy. This was a big step forward for the industry. As a result of the increased competition from fintech companies in the midst of the coronavirus pandemic, virtually every existing financial institution is currently turning its attention inside and embarking on an innovation push. As a result of this, incumbents are actively investing in, acquiring, and partnering with their competitors that work in the fintech industry.
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The Landscape of Fintech Companies
Traditional banking institutions are under increased competition from digital-only banks and fintech companies as an increasing number of people prefer using digital methods for managing their personal accounts. These companies are among the most successful fintechs in the world:
Monzo
The range of employees is from 251 to 500.
Total Funding: $356 Million
Starling Bank
Between 501 and 1,000 Workers Are Employed Here.
The total amount of funding is $354 Million.
Robinhood
Between 501 and 1,000 Workers Are Employed Here.
The total amount of funding is $1.2 billion.
Mint
Between 5,001 and 10,000 Workers Are Employed Here.
Total Funding: $31.8 Million
Coinbase
The range of employees is from 251 to 500.
Total Funding: $547.3 million
SoFi
The number of workers ranges from 1,001 to 5,000.
Total Funding Amount: $2,500,000,000,000
Trends in the FinTech Industry
Large technology businesses are planning to make significant investments in wealth management during the next few years. According to Capgemini’s research, almost three quarters of high-net-worth individuals around the world say they would use wealth management services provided by large technology companies if they were available. Amazon, Google, and Microsoft are currently building the digital infrastructure that is required by wealth managers.
The use of automated financial advisors, or robo-advisors, is projected to increase in the foreseeable future, which will create an opportunity for both fintech companies and incumbents. According to estimations provided by Insider Intelligence, robo-advisors in North America only had a total of $330 billion in AUM at the end of 2019, but we anticipate that this amount will climb to $830 billion by the year 2024.
The increased use of financial technologies will prompt additional national regulatory actions in China and elsewhere throughout the world, which will improve the competitiveness of China’s already highly developed financial technology ecosystem. The epidemic caused by the coronavirus pushed financial services online so they could more easily reach customers. And because of this expanding usage of financial technology, China’s regulators are probably being pushed to scrutinize and better comprehend the activities of key financial technology companies.
