To start with, there is a question here. Isn’t it too good to be true that fintech has attracted millions of customers by using innovative hardware, modern-day software, and business-friendly networks? By answering the questions given, you will be able to understand the essence of fintech. Of course, this might be a new term for you, but its impact on your business is immense. That is why you should understand this.
Newly revolutionized technology has continued to have a significant impact on how businesses operate and run, as well as how far they will progress in the future. There are facts related to Fintech statistical numbers that can show that Fintech-based companies are among the world’s fastest-growing businesses.
Do you want your business to thrive? You can have a thriving industry, of course, like others, if you recognize Fintech technology. Businesses of any form can benefit from collaborating with Fintech firms. That is why you are advised here to look for a company that focuses on this. Be informed that some of the largest publicly traded financial companies are using Fintech as they focus on gaining a competitive advantage in their respective industries.
If you are in the U.S., then you can try the services provided by Fintech Companies San Francisco.
Did you know that almost 40% of financial firms worldwide believe that cryptocurrency-related investment is a significant factor for the fintech industry? Yes, you read it right. In the United States, Apple Pay accounts for 92 percent of mobile wallet transactions. This fact has caused the value of fintech to rise dramatically. The global value of fintech-run businesses in 2019 alone was around $5.5 trillion.
Following that, 37% of financial service organizations provide fintech services or products. Ant Group, the world’s largest fintech company, has a net worth of over $313 billion. This company also employs more than 10,000 employees. This is due to Fintech’s popularity. And you have to be informed that fintech firms are used by 23 percent of US consumers.
What is Fintech by the way?
Here’s a simple question: What exactly is fintech? This is actually a financial service provided by a particular firm. The services or products offered are all technology-based, with a focus on results that are highly innovative. The term “fintech” was coined to combine two main derivative terms, such as “finance” and “technology.” Clearly put, the new technology running this is what runs the present-day alternative finance industry, like cryptocurrency. What are the basic examples of a fintech company? To mention a few, there are a few examples here, such as MarketInvoice, Lending Club, Funding Circle, and Kantox.
Will fintech be around for a long time? This is a great question. Of course, it will. Why so? Simply because the technology behind this is expected to dramatically transform financial institutions all over the world. Financial technology is changing the financial landscape in the world. There has been a massive increase in the number of businesses managing and handling their financial processes through this.
The question now is: Are banks concerned?
Of course, most of them are. The introduction of this technology into the global financial landscape has been alarming to traditional banking institutions. Even the government has been alarmed. However, people and financial institutions have adapted to the changes brought about by technological innovations. That said, fintechs currently have a considerable and impactful market share.
Fintech is a fast-growing sector
Did you know that global investment in the burgeoning fintech sector has tripled since 2008? Statistically, it has since risen from $928 million to $2.97 billion for several years now. We can even see that disruption or intervention by fintech is expected to threaten 35% of banking revenues in 2020. And yes, it did. There are over 3,000 fintech start-ups that exist. They offer a wide range of financial products or services, such as capital loans, investment management, international money transfers, and, to say the least, crowdfunding.
Furthermore, according to reports, 71 percent of millennials would rather go to the dentist than listen to banks. This is good news for fintech investors. Why? Because the latest technology in finances will make life easier for millennials.
In 2018 alone, fintech investment globally was expected to reach around $8 billion. And yes, it really did that year. Worldwide, the impact of financial technology has been seen as robust and strong. In London, there is what we call the “European Fintech Capital,” which accounts for 53 percent of all European fintech transactions.
Due to low corporation tax and proximity to London, Ireland is used as a launchpad by a lot of fintech start-ups. In the United States, Silicon Valley has been known as the global fintech capital. In 2013, Silicon Valley accounted for one-third of all fintech transactions. Lending Club, a credible and legit fintech example, is widely known as the leading fintech company globally. Since 2008, average annualized growth in UK fintech investment has been 51%. All these facts can shape your mind about how financial technology has been evolving over the years.
Have you ever heard of so-called open banking? According to a survey, 52 percent of US respondents have never heard of so-called open banking. Open banking, by its very term, is a premier and primary fintech service. The statistics behind this, however, show that only half of the US population is informed and well-aware of it. The rest do not know that it exists nowadays. To some extent, Fintech in the US is like a newborn baby. It still has a lot of room to grow.
A poll was conducted recently, and the result was that 84 percent of those polled agreed that it is important for them to control their financial data and information, which is a key principle of fintech processes. The expectation of growth has been so immense that just last year, around 2.5 billion people would have used digital retail banking products and services.
How many people use financial technology services? Almost one-third of the world’s population uses computers and other smart devices, such as smartwatches, tablets, and smartphones. Those things are used to access digital banking products and services. And here’s the thing: In the year 2026, the figures behind fintech are expected to rise more dramatically than they are now.
Why do financial institutions use fintech at present?
Fintech-based products or services are available to financial customers. There are approximately 37% of financial service organizations in the world. The statistics have been so dramatic that fintech retention rates show that even well-established companies and firms continue to prioritize internal financial innovation. The perks and benefits of using this newly revolutionized financial technology have been immense.
As a fact, it is believed that concentrating on user-friendly and easy-to-use product designs can encourage customers to use them with consistent patronage. Using artificial intelligence and blockchain technology to retain customers is a surefire way to do so. Financial technology is gaining popularity as it is evolving. It has prompted more and more people to use it because of the convenience it is able to provide. Furthermore, fintech statistics show that it adds value to various business organizations that implement their own fintech systems and initiatives.
Fintech is expected to drive growth in the financial services industry all over the world. The growth rate of all financial services firms is expected to be around 94 percent in the coming years. The banking industry’s response is expected to increase as the collaboration is significant and valuable toward the avoidance of revenue losses.
As such, fintech collaboration must happen as it helps in gaining access to technology and innovation. This is especially true for business organizations that have an embedded fintech strategy. It is so because those organizations are more likely to be very confident that the latest financial technology will deliver revenue growth as dynamic as possible in the coming years.
Companies with a formal strategy that hasn’t been fully implemented vis-à-vis fintech services have a lower level of confidence. Accordingly, there are 47 percent of traditional financial institutions that intend to expand their collaboration with fintech firms. Take note that survival requires and needs innovation. This is the reason why the banking industry is increasingly investing in and collaborating with fintech firms and companies.
There is, in fact, a survey that pointed out that 25% of customers are willing to try new banking services. In the US, a quarter of consumers want to try financial products from big financial firms or fintech firms. Approximately 70 percent of them choose this system because it is faster when it comes to delivery, not to mention the personalized services and improved accessibility as additional factors for switching.
Remember that 57 percent of banks are in the process of establishing a digital-only subsidiary system, according to financial reporting services. Banks do not actually want to be left behind. This is the main reason why over half have the desire to create and implement a digital-only subsidiary system. Currently, 30% of business institutions are just getting started, while the remaining 27% are in the planning stages.
Is it really beneficial to use fintech as a financial service? Yes. There are startups that can attest to this. Business organizations can benefit from collaborating with banks that create such newly-revolutionized tech-based solutions. New models, paradigms, and applicable theories are at the forefront, and they are crafted to help businesses globally. Thus, new financial expertise has emerged.
Gen Zers and Millennials are the ones who avail and embrace fintech
Did you know that Millennials and Generation Z are the most likely to have multiple financial technology accounts? What are the specific numbers behind this claim? The answer is approximately 7 percent of millennials and another 7 percent of Gen Zers. They may have six or more financial technology banking accounts. Gen Xers may make up only 3 percent of the general population. And here’s the thing: none for Baby Boomers.
Of course, the younger generations are more likely to embrace and use fintech accounts. According to millennial fintech statistics, the older generation is falling further behind because the new financial system is run by modern-day technologies. Clearly, fintech services and products are popular among the younger generations.
Furthermore, when it comes to filling the gap in the workforce sector in relation to fintech impacts, there are businesses that are falling behind in filling those positions. The emphasis is that there is a labor shortage as the fintech system erodes the older financial systems. For some reasons, traditional banking systems are still regarded as more trustworthy than fintech firms.
According to statistics on fintech consumer adoption, 27 percent of financial users trust fintech companies more than traditional financial institutions. However, it does mean that the conventional way of conducting financial transactions has been totally superseded. The gap has been seen as the new technology is yet to reach its full effect in the global marketplace. There is a very narrow margin. Fintech is far ahead in terms of providing a safer and more convenient service, but it has yet to have a full impact globally.
In 2019, the global fintech market was valued at around $5.504 trillion. Wow, this is a whopping figure, isn’t it? Did you know that it is expected to grow at a CAGR of 23.58 percent by the year 2025? Yes, you read it right here. The increase in the value of the fintech industry is evident because of the investments in technology-based financial solutions. More businesses are relying on this new financial system as the world is being shaped further by technological changes and innovations. If your concern is how to boost your business through an effective financial setup and system, then this newly revolutionized financial system is the answer.
Statistically, Asia-Pacific is the dominant region that accounts for 49.45 percent of the market. This dominance is expected to continue in the coming years, for sure. In 2018, Ant Financial, a giant China-based fintech company, raised around $14 billion in business funding. This was both a record for the fintech industry’s investment in history. Over two billion people rely on digital payment services provided by Ant Financial, or the presently-known Ant Group. You have to understand that the company’s Ant Group’s current market capitalization is now pegged at $313 billion.
Wrapping up: Fintech is a revolutionized system
Embracing the new financial services and products is one good approach for you to have a well-adapted business system. Fintech has been changing the global financial landscape. That being said, it is crucially important to understand the corresponding statistical facts and data. This newly revolutionized financial system could change the world we live in.
In the coming years, we can expect more astonishing facts. What is important now is that we are aware of this. Gradually, going into the system is vital for adaptation purposes. Keep in mind that what is constant in this world is change. Do not be afraid to change the way you transact your business for financial growth.