85+ Important Fintech Statistics You Need to Know in 2023
The latest FinTech stats show that the banks' physical transactions are phasing out. People are leaving the traditional financial practice behind for the convenience of technology. Fintech has taken over the financial industry and has become a billion-dollar sector with its continuous growth at a proliferating rate. Experts believe the fintech market will reach about $37 billion by 2026.
The statistics compiled below will help you have a mental picture of the Fintech market and show you how to remain relevant in this competitive market. Let's dive in.
What was weighed as a complex means of handling finance" is now used by millions worldwide. From the EY Fintech adoption survey, 96% of the 27,000 consumers surveyed expressed that they were aware of a fintech transaction. And also, 75% had, in one way or the other, used one of the apps. The source also identified a massive growth in the SME market across banking, insurance, and financial management.
(Source: EY)
2. The Nasdaq Stock Exchange Hosts the Stocks of the Largest Technology Companies Globally.Nasdaq shows its stock exchange hosts global stocks for the largest technology companies. The business presently has results for over 463 fintech stocks on its website.
(Source: Nasdaq)
3. There was a 20% Increase in Global Funding Deals From Q1 2021 to Q1 2022.In Q1 2022, global fintech funding deals were about 1,482 compared to Q1 2021. This showed an almost 20% increasein just a few months.
(Source: CB Insights)
4. 9 Million Unbanked Households in the US Pay for Financial Services Annually.Unbanked citizens are prone to face barriers in terms of financial services. From Forbes, about 25% of Americans don't have a bank account or access to the full array of financial services. On average, 9 million unbanked households in the United States pay roughly$200 to $500annually for financial assistance. Fintech helps overcome this fee by DDD (digitally depositing directly).
(Sources: Nerdwallet,Forbes)
5. 10,000 Fintech Startups Were Registered in the US as of 2021.Over 10,000 fintech startups were registered in the United States alone as of 2021. Worldwide, it was recorded that over 26,000 startups got registered.
(Source: Statista)
6. $26 Billion was Invested in the US Fintech Market by Venture Capitalists in 2019.According to Accenture findings, in 2019, the US fintech market received $26 billion worth of venture capital deals. This amount represents a54% yearly increase.
(Source: Accenture)
Fintech Statistics - Industry Based
In 2022, it was recorded there was massive funding of over $25 billion in the financial services market worldwide. These valuation trends aided analysts in estimating that the financial services market will be worth $25,839 billion by 2022 globally.
(Source: Reportlinker)
8. In 2019, Funding Into the United States Fintech Market Increased From 54% to Over $26 Billion.Presently, the US is the home to fintech statistics. In 2019, the United States fintech market received significant funding. The deals' value climbed by 54% to over $26 billion.
(Source: Accenture)
9. Bank will Save Roughly $7.3 Billion by 2023 by Using Chatbots.According to recent research, chatbots can reduce operational costs in financial services. This is by resolving customer queries in a computerized way. Also estimated from the analysis is that banks will save roughly $7.3 billion by 2023 using chatbots.
10. Investments in Fintech Insurance Companies Hit a Five-year-high in 2020 by $3.8 Billion.The fintech industry is rapidly growing globally. This massive growth has attracted significant investments in fintech insurance companies worldwide. In 2020, investments into insurance companies attained five-year high funding, with over $3.8 billion raised.
(Source: S&P Global)
11. Global Fintech Funding Dropped by 33% in 2022.Fintech funding worldwide declined in 2022. The year began with a rough economy, affecting global financial markets. While the fintech sector suffered a setback, it continued to innovate and explore new opportunities. As a whole, though, fintech funding in Q2 dropped by 33%.
(Source: CB Insights)
Fintech Statistics - Growth Based
Fintech is divided into different sectors and provides various services. Lending, insurance, banking, digital payments, etc., are the sectors involved. In 2013, digital peer-to-peer (P2P) lending had a market value of $3.5 billion. Based on expert analysis, it is expected to reach $1 trillion by 2025.
(Source: Statista)
13. The Financial Services Market will Grow by Over $2.5 Trillion Between Q1 of 2021 and Q4 of 2022.With so many people turning to digital banking and Fintech, it's expected that between Q1 of 2021 and Q4 of 2022, the financial services market will grow by over $ 2.5 million.
(Source: Reportlinker)
14. North America Grew to the Second-largest Financial Service Market in 2021.By 2021, Northern America had become the second-largest financial services market. Western Europe topped it.
(Source: Reportlinker)
15. 48% of Existing Financial Institutions have Already Integrated Fintech as Their Primary Operating Model.With the belief that using Fintech will improve customer service,45% of financial institution owners have embedded Fintech as their top-notch.
(Source: PWC)
16. In the United States, Partnerships Between Banks and Fintech Companies Have Grown to 13% Between 2020 and 2021.As mentioned earlier, Fintech has received massive funding over the years. Between 2020 and 2021, its partnership with banks in the US grew to about 13%.
(Source: Statista)
17. EMV Chips were Used Between 60 to 70% in Canada, Latin America, Africa, and More.The standard security chips on debit, credit, and prepaid cards are called EMVs. By 2020 according to a source, they have been used by over 10.8 billion users. Spreading to regions like Canada, Latin America, and Africa, 60 to 70% of usage has been recorded.
(Source: Reportlinker)
18. The 2022 Financial Services Market Survey Predicts That the Market Will Increase at an Annual Rate of 9.6% in 2026.The survey has proven that Fintech is fast outgrowing traditional financial services. From the 2022 financial services market reports, the fintech market will grow at an annual rate of 9.6% to $37,343 billion in 2026.
(Source: Reportlinker)
Fintech Statistics - Startup Based
With more people searching for modern ways to manage their money, Fintech has experienced a sharp rise in usage. Many venture capitalists are investing in fintech startups and companies experiencing massive growth.
19. 10,000 Fintech Startups Registered in the US as of 2021.From research, it was gathered that in the US alone, as of 2021, there were over 10,000 startups registered. And also over 26,000 registered worldwide.
(Source: Statista)
20. 19 Insurtech IPOs in 2021 With a Value of Over $5 Billion.In 2021 alone, sources recorded that about 19 insure tech IPOs valued over $5 billion.
(Source: S&P Global)
21. Robinhood had 500,000 Users in 2014.In 2014, Robinhood also had a rise of 500,000 users; by Q2 of 2022, it had grown to about 23 million.
(Source: Statista)
22. The UK Based Money Management Platform GOHENRY had a 1,260% Increase in Search Growth From 2018 to 2022.The UK-based money management platform was not left as it had above 1 million customers. This came with a 1,260% rise between 2018 and 2022.
(Source: Exploding Topics)
23. M1 Finance Received $323 Million in E-series Funding.M1 Finance is one of the highest-rated startups. It has over 35,000 five stars reviews and has received $323 million in series E funding.
(Source: Exploding Topics)
24. According to a Source, the Fintech Startup Revolt Has Earned Over $1.7 Billion in Funding.Furthermore, fintech startup Revolt has received above $1.7 billion via funding.
(Source: Exploding Topics)
25. Robinhood had Over 9 Million Active Users in 2021.The second-largest stock trading platform is WEBULL. In 2021, Robinhood tripled, with over 9.1 million active users.
(Source: Statista)
Fintech Statistics - Mind-blowing Investment
Analysts have pointed out fintech stocks as great buys as more people embrace technology. A market guru, Cathy Wood owns over 630,000 shares spread across 31 stores. Also, the former CEO of Twitter, Jack Dorsey, has 50.8 million shares.
26. 436 Fintech Stocks are Listed on the Nasdaq Website.As mentioned, Nasdaq is a worldwide online marketplace where you can buy and trade securities. The Nasdaq stock exchange has436 fintech stocks listed on its website. Currently, it hosts the stocks for the largest tech companies globally.
(Source: Nasdaq)
27. Stripe is the Largest Fintech Company in the US.From the source, Stripe is the most prominent fintech company in the US, valued at about $95 billion.
(Source: Statista)
28. ARK Invest Owns One of the Largest Fintech ETFs.According to the source, ARK Invest owns one of the largest ETFs, with over 630,000 shares spread across 31 stocks. In 2021, the ETF grew by 209%.
(Source: Ark Invest)
29. In 2021, Coinbase Went Public. Its Market Cap Then Exceeded $100 Billion on Nasdaq.Coinbase went public in 2021, which made its market cap outstrip $100 billionon the Nasdaq.
(Source: CNBC)
30. Between Q1 of 2022 and Q4 of 2021, There was a Rise in the Price of Shopify's Stock Share to 214%.Shopify's stock share grew by 214% between Q1 of 2022 and Q4 of 2021.
(Source: Yahoo! Finance)
31. The Former CEO of Twitter Owns 50.8 Million Shares.Jack Dorsey, the former CEO of Twitter, owns about 50.8 million shares of fintech company Square. While Oris, the manufacturer of Swiss mechanical watches, has 12.7% of the total shares.
(Source: Whale Wisdom)
Fintech Statistics - Venture Capitalist Funding
There's no doubt that Fintech, over the years, has received massive increases in funding globally. A few venture capitalists who didn't buy into the fintech startups have regrets, as billions of dollars are flowing into the industry.
32. Global Fintech Funding in Q2 of 2022 was $20.4 Billion.Although there was a decrease of 33% QoQ from Q1 to Q2 of 2022, funding still increased to over 112% since 2018. As of Q2 of 2022, global Fintech funding was $20.4 billion.
33. Startup Deals Made Up 90% of Venture Capital.As earlier stated, Fintech received massive funding from venture capitalists. Between 2010 and 2021, startup dealsamounted to 90% of venture capitalist deals.
(Source: Bank For International Settlements)
34. The Wealth Tech Sector Experienced a 36% QoQ Rise.Furthermore, the wealth tech sector saw a 36% QoQ funding increase in 2022. This came with over 180 secured deals.
(Source: CB Insights)
35. The Value of the Global Venture Capital Investment Hit 131.5 Billion From 48.9 Billion Between 2020 and 2021.Between 2020 and 2021, the value of venture capital investment in Fintech worldwide grew from 48.9 billion to about 131.5 billion.
(Source: Statista)
36. In Q2 of 2022, There Were Over 1,200 Venture Capital Deals.The fintech industry in Q2 of 2022 received over 1,200 venture capital deals.
(Source: CB Insight)
37. 600 Deals Were Recorded in 2010 With a Value of $11 Billion.From research in 2010, 600 deals were received with a value of $ 11 billion. It grew to $218 billion, with nearly 5,000 sales by 2019.
(Source: Bank For International Settlements)
Fintech Statistics - Blockchain Based
Blockchain is a database where cryptocurrency transactions take place daily. Some of the biggest companies worldwide use blockchain. Examples of some of these companies are Goldman Sachs, Walmart, Microsoft, and more.
38. About 40% of Financial Services Companies Believe Blockchain Technology Will Improve Services.Research gathered that about 40% of financial servicing companies believe blockchain technology will deliver better services.
(Source: PWC)
39. Crypto KuCoin is Valued at Over $10 Billion.In 2020, Fintech birthed its crypto exchange coins. KuCoin is one of the 20 unicornsborn. Currently, it's valued at over $10 billion.
(Source: CB Insights)
40. In 2020, Total Global Investment in Cryptocurrency was $1.2 Billion.As mentioned earlier, some financial servicing companies believe blockchain technology will give their services a better touch. In 2020, it was recorded that the total worldwide investment in crypto and blockchain was $1.2 billion.
(Source: KPMG)
41. Over 450,000 Transactions Daily in 2019.In 2018, many cryptocurrency transactions were made, but in 2019, over 450,000 transactions were done daily. Research gathered that it was 49% higher than in 2018.
(Source: YCharts)
42. 10% of People Globally Possess a Form of Cryptocurrency.With the hike in blockchain and cryptocurrency usage, it's estimated that 10% of the human race owns cryptocurrency.
(Source: Finbold)
43. $6.6 Billion was Spent on Blockchain Globally in 2021.From research, in 2021, global blockchain spending was $6.6 billion. It's also projected to get to $19 billionby 2024.
(Source: Statista)
Fintech Statistics - Bitcoin Based
Bitcoin is one of the cryptocurrencies in circulation. It's a deflationary currency, which means there's a limit to its creation. Once 21 million have been mined. It can't be created anymore.
44. The Source States That as of June 2021, 18.74 Million Bitcoins Were in Circulation.Furthermore, it's recorded that as of June 2021, 18.74 million bitcoins were in circulation.
(Source: Statista)
45. Over 74 Million Blockchain Wallet Users as of June 2021.Also, there wereover 74 millionblockchain users by June of the same year.
(Source: Blockchain)
46. 100,000 Bitcoin Millionaires in February.As earlier stated, the use of Bitcoin has enriched many people globally. Research proved that in February 2021, the number of Bitcoin millionaires was 100,000.
(Source: Bitinfocharts)
47. In the Q3 of 2022, Bitcoin's Market Cap was $465 Billion.The market cap of Bitcoin then grew to $465 billion by the Q3 of 2022.
(Source: Ycharts)
48. Ethereum was at $4,644.43 in Five Years.Ethereum is the second largest cryptocurrency. In five years, it grew drasticallyfrom $11.59 to $4,644.43. The source proves that this is a 38,765% increase.
(Source: Coin Market Cap)
49. The Robinhood App Accommodates Cryptocurrency Transactions.In Q1 of 2021, it was recorded that over 3 million users were trading on the Robinhood app.
(Source: Buy Bitcoin Worldwide)
50. In 2021, the Popular Cryptocurrency Exchange Coinbase Closed at $328.28 Per Share on the Day of its IPO on Nasdaq.On the global marketplace for securities trading, Nasdaq, Coinbase exchange shares closed at $328.28each on the IPO day, increasing its value to $ 85.8 billion in 2021.
(Source: Yahoo! Finance)
Global Fintech Statistics
Even though the United States is known to top the fintech market, other countries are gradually catching up. According to statistics, these countries are receiving massive funding as more people turn to digital financing.
51. 38% of Global Deals Occurred in the US Between 2021 and Q2 of 2022.The United States is the global leader in the fintech market. Between 2021 and Q2 of 2022, it had over 38% of international deals on its shores.
(Source: CB Insights)
52. 75% of Financial Companies are Recruiting.Currently, 75% of financial institutions are recruiting staff and designing jobs relating to Fintech.
(Source: PWC)
53. Fintech's Rise in 2019 Hinted at its future in the United States.In 2019, there was amassive rise in fintech funding in the US. This increase convinced analysts that investors were confident about the future growth of Fintech.
(Source: Accenture)
54. Fintech Investment Rose in the United Kingdom in 2019.The United Kingdom saw an increase of about 60% in fintech investments in 2019, amounting to $6.3 billion.
(Source: Accenture)
55. Fintech Fundraising Almost Doubled to $3.7 Billion in India.While the United States tops the line in the fintech market, other countries, such as India, are already catching up. In 2019, fundraising in India almost doubled by$3.7 billion. And in Singapore, it went up to $861 billion.
(Source: Accenture)
56. In Q2 of 2022, Asia Saw 24% of Fintech Funding.Asia is a fast-growing business market and is also catching up with the US in fintech marketing. Asian countries received 24% of fintech funding deals in Q2 2022.
(Source: CB Insights)
57. Fintech Funding Had a Two-year Low in Q2 of 2022.2022 recorded an unstable economy, and this brought about a negative impact on fintech funding. Fintech funding saw a two-year low in Q2 of 2022, although the industry still received over $20 billion in investments.
(Source: CCBInsights)
58. Global Use of Fintech in Preference to Traditional Banks.Expert predictions predict that more global consumers will use Fintech instead of traditional banking patterns.
(Source: CCBInsights)
The Impact of Covid-19 on Fintech Statistics
The Covid-19 pandemic gave rise to fintech apps globally. In Europe alone, fintech apps were used 72% more during the pandemic's early months. Due to lockdown restrictions, many people resort to Fintech for financial transactions.
59. Global Use of the Fintech Vertical Increased in 2020.There was a massive growth of every type of fintech vertical in Q1 of 2020 worldwide., except one. These verticals include digital lending, insurtech, digital payments, etc.
(Source: We Forum)
60. There Was an Increase in Retail-focused Fintech Firms in 2020.Assessment studies show that in 2020, retail-fintech entities increased by 47% in gross valuestransacted.
(Source: We Forum)
61. There was Higher Growth in Digital Lending and Payment Firms in 2020.According to research, digital lending and payment firms had themost significant growthduring this pandemic.
(Source: WeForum)
62. Over Half of Global Low-Income Individuals Utilized Digital Payments Amidst the Covid-19 Pandemic, Reveals Study.Sources Gathered that 55% of the People Who Used Digital Payment During the Covid-19 Pandemic Globally Were Low-income.
(Source: We Forum)
Fintech Statistics for the Underbanked
There're millions of underbanked Americans and in the world at large. This group lacks access to traditional financial services. As such, they resort to check cashing services and lots more.
63. The Percentage of Underbanked American Adults is Up to 13%.From the source, 13% of American adultsare underbanked, and 5% are utterly unbanked.
(Source: Federal Reserve)
64. 16.1% of Unbanked Americans Have Lost Trust in Traditional Banks.Many people globally are unbanked because they don't trust traditional banks. Statistics show that 16.1% of unbanked Americans don't trust traditional banking.
(Source: FDIC)
65. 9 Million Unbanked American Households Paid $1.8 to $4.5 Billion as Fees in 2016.As mentioned earlier, statistics show that up to 9 million households in America are unbanked. In 2016, these 9 million unbanked Americans paid $1.8 to $ 4.5 billion as fees for not having access to traditional banks.
(Source: Nerdwallet)
66. 24% of the Unbanked Population Have Less Than a High School Degree.Research showed that the level of education in America determined the percentage of the unbanked. 24% of unbanked Americans have less than a high school degree.
(Source: Federal Reserve)
67. Surge in Buy Now, Pay Later" Installment Loan Services Usage Sweeps Across Population.Between 2021 and 2022, 10% of the Population Resorted to Installment Loan Services. Which is a Buy Now, Pay Later" Payment Plan.
(Source: Federal Reserve)
68. 21 Million Americans Don't Have Government-issued I.D.One of the problems associated with the unbanked population is that they don't possess a Government -issued ID. Without this ID, it's difficult or, rather, impossible to own a traditional bank account. Statistics have recorded that over 21 million Americans don't have a government-issued ID.
(Source: ACLU)
69. Fully Banked People With High Credit Scores are More Prepared for Financial Disruptions.According to the report, people who're fully banked and can readily borrow are prepared for financial disruptions.
(Source: FedIDl Reserve)
70. People With Less Annual Income Were Denied Borrowing, Unlike Those With a Higher Annual Income.Also, the source shows that almost 50% of people with less than 50,000 annual incomes were denied borrowingcompared to 11%of those with a yearly revenue of $100,000 and above.
(Source: Federal Reserve)
71. Black People are Likely to be Denied Credit.As we already know, racism is still in play in some major countries. The black race has limited or no opportunitiesin these countries. In America, for instance, a source pointed out that blacks are more likely to be denied credit, despite their income level. At most, they could get approval for a lesser amount, even with an income above $100,000.
(Source: Federal Reserve)
72. The Annual Cost of Those Without a Bank Account is $196.50.Analysts estimate that the annual cost of people without a bank account is $196.50 annually. This is due to the fees attached to the prepaid debit card.
(Source: Nerdwallet)
Consumer Experience Statistics
Recent trends have shown that more people are extensively using fintech apps.
73. Fintech Ensures a Better Customer Experience.94% of financial services providers believe that Fintech will improve customer experience. This will, in turn, foster the growth of their revenue in the future.
(Source: PWC)
74. The Fintech Industry Ensures Customer Retention.Over 25% of financial services institutions believe that with the ease of use and speed of fintech services, they would have better customer retention.
(Source: PWC)
75. Many Unbanked People Have No Interest in Saving Accounts.About 56% of people without a bank account were aloof about owning a savings account in the future.
(Source: FDIC)
76. Fintech Reduces the High Cost of the Use of Cash.Individuals who use cash only spend more due to fees attached to money order services. Researchers found that cash users recorded a cost of about $198.83 annually.
(Source: Nerdwallet)
77. 51% of Young People Trust Fintech Companies.About 51% of the 18-24 age range trust fintech companies, while 39% trust traditional banks. Also,49% of 25 -34 age bracket trusts fintech, and 42%, trust the banks.
(Source: Statista)
78. In 2021, Only 18% of People Were Using Cash.In addition to the above, only 18% of people used cash in 2021. Online payments were the primary source of sale transactions.
(Source: Hotel Tech Report)
79. 52% of Consumers are Willing to Share Contact Information.Finally, from an Experian report, statistics show that 56% of consumers are willing to give out contact information to financial institutions for a better experience.
(Source: Experian)
Statistics of Fintech and AI
Artificial Intelligence is a computer-based or rather computer-controlled operation. Although it's been overlooked when discussing Fintech, 90% of companies worldwide currently use it. The most prominent fintech companies globally use artificial intelligence for fraud detection and chatbots.
80. B2B Businesses are More Likely to Use AI Tools.According to researchers, 24% of Businessto Consumer (B2C) models are more prone to using artificial intelligence tools than the Business to Business(B2B) model.
(Source: Siege Media)
81. 90% of Global Fintech Companies Rely on ArtiAIcial Intelligence.About 90% of fintech companies globally depend solely on artificial intelligence and robotics.
(Source: University of Cambridge)
82. By 2023, AI Will Help the Insurance Industry.Research experts have estimated that by 2023, using artificial intelligence will help the insurance industry save $1.3 billion.
(Source: Juniper Research)
83. The Use of AI Algorithms Reduces the Time of Fraud Investigation.Fraud detection techniques powered by Artificial intelligence have been estimated to reduce the investigation timeby 70%.
(SouAIe: The Business Research Company)
FinTech Usage on Mobile Devices
Researchers say many people spend 5 to 6 hours daily on mobile devices. Of the people who own mobile phones, 11% spend at least 7 hours on them.
Due to the time people spend on these mobile devices, researchers discovered that more than half of American adults use the available fintech apps. Also, the number of people utilizing the apps to pay bills, send money to their friends, and other transactions are increasing.
Here are some statistics to back it up:
84. In 2019, researchers discovered that 64% of the world's population used one fintech app of the other. The popular Zelle payment app volume hit $307 billion by 2020'sfiscal year. This was close to double Venmo and PayPal's volume. (Source: Statista)
85. A2022 research reported that 97% of millennials used mobile banking. (Source: Insider Intelligence)
86. Many Gen Y and Gen Z use mobile banking. Also, 64% of Gen Y and 51 % of Gen Z use the apps to check their banking activities and account balances(Source: Morgan Stanley)
87. Global Payment researchers discovered that 23% of consumers shop online with their phones every day, while 39% shop on mobile devices daily or weekly. (Source: Global Payments)
88. The amount spent on mobile apps in 2021 hit $170 billion in 2021 but dipped 2022 to $167 billion, a slight decrease. (Source: Statista)
89. Researchers discovered that more people use PayPal to send, receive money and pay bills more than others. While 59% use PayPal, 20% use Google Wallet, and 41% use banking apps. (Source: S&P Global)
ConclusionThe world of financial service providers won't be complete without Fintech. Technology has proven to be valuable and beneficial over the years. Every household, or a large percentage of households globally, uses Fintech. The challenge of spending hours in traditional banks, as well as being unbanked, has been curbed by Fintech. With billions of dollars in investments coming in quarterly, there's no doubt that its growth would keep skyrocketing.
FAQsWhat is essential about fintech?Fintech helps you access your customers easily and saves you the stress of traditional banking or being under-banked.
What are examples of Fintech?Fintech can be applied in different areas of finance. A few examples are listed out below; 1. Investment apps: like Robinhood, 2. Personal finance apps like YNAB, Mint, and so on, 3. Payment apps like Venmo and PayPal, 4. Peer-to-Peer lending platforms, and 5. Robo-advisors.
Is OPay a fintech company?Yes, OPay is a fintech company. It's one of the largest fintech companies in Africa. OPay has over 30 million users, 500,000 agents, and 300,000 merchants.