Fintech - statistics & facts
Over the last 10 years, fintech has evolved from a niche and elusive industry trend into a transformative force in the global financial landscape. Initially associated with small startup ventures, fintech today includes multibillion-dollar enterprises. During the last decade, the fintech sector has witnessed a substantial surge in the number of companies, with a notable concentration in the Americas. Concurrently, there has been a remarkable uptick in fintech users globally, particularly in digital payments, where the global user base is forecast to exceed 3.5 billion in 2024. Despite the growing number of fintechs and the expanding user base, investment activity has slowed down notably in recent years, with 2023 recording the lowest value and number of investments since 2017.
Pinning down a precise definition of fintech proves challenging because of the segmentations within the industry. Online and mobile banking, digital payments, cryptocurrency and blockchain, insurtech, wealthtech, artificial intelligence, all classify as fintech as they combine innovation in the financial industry with technology.
Fintech has emerged as a major force in the global financial industry, with significant growth in companies and users, especially in digital payments. While recent years have seen a decline in investment activity, the sector continues to mature and evolve, pointing towards a future of sustained innovation and adaptation amidst changing economic conditions.
Pinning down a precise definition of fintech proves challenging because of the segmentations within the industry. Online and mobile banking, digital payments, cryptocurrency and blockchain, insurtech, wealthtech, artificial intelligence, all classify as fintech as they combine innovation in the financial industry with technology.
Fintech investment landscape: End of the booming era?
Investments into fintech companies rose sharply between 2012 and 2021, culminating in a record-high global investment value by 2021. However, a significant downturn began in 2022, and by 2023, investment value halved, with the Asia-Pacific region witnessing a substantial 40 billion U.S. dollars drop. Nearly every segment witnessed a steep decline in investment, except for insurtech, which saw a notable increase. Additionally, ESG and greentech recorded a doubling of investment value in 2023. This downward trend extended to investment types as well: M&A and venture capital investments plummeted, while private equity experienced a slight uptick. On the one hand, the decline in investment activity can be attributed to higher interest rates and worsening macroeconomic conditions, prompting investors to exercise fiscal restraint. At the same time, it is worth noting that the fintech sector is no longer as much of an emerging market as it was a few years ago, and investment landscapes change as markets mature.Global fintech titans: unicorns and dominance
Fintech is often associated with small startup ventures, but it is important to note that the list of fintech unicorns - startups valued at over one billion U.S. dollars - numbers in the hundreds. The United States and China are home to eight of the 10 largest fintech companies worldwide. Despite the dominance of these two countries, the two highest valued fintech unicorns at the end of 2023 were the Irish payment processing platform, Stripe, and the UK-based digital bank, Revolut. Stripe was valued at 50 billion U.S. dollars, significantly higher than Revolut, which had a valuation of 33 billion U.S. dollars. Europe, in fact, is home to several prestigious fintech companies. Revolut and Wise are two of the most widely used digital banks in Europe, with Revolut reporting 35 million customers at the end of 2023.Fintech has emerged as a major force in the global financial industry, with significant growth in companies and users, especially in digital payments. While recent years have seen a decline in investment activity, the sector continues to mature and evolve, pointing towards a future of sustained innovation and adaptation amidst changing economic conditions.
