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10+ FINTECH STATISTICS & FACTS FOR 2022

2022-06-23T12:57:10+00:00By EES|
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Fintech (financial technology) is a word that refers to cutting-edge digital
technology that aims to improve financial services and banking. In the financial
industry, cutting-edge advancements like blockchain and artificial intelligence
are ushering in new methods of conducting business. Digital currencies, banking,
insurance, personal loans, and wealth management are just a few of the
industries that are undergoing a digital makeover.

The financial sector has been buzzing for the past five years about the
disruption fintech companies are making by offering consumers alternatives to
established solutions. The tide is turning, according to statistics. Established
businesses are more aware than ever of the possibilities and importance of these
new technologies.

The financial technology sector is one of the fastest-growing in the world, with
an average annual growth rate of over 25%. According to the most recent fintech
data, the industry will be worth over $310 billion by 2022 if current trends
continue. So, while fintech isn’t yet among the top ten worldwide revenue
industries, it’s on its way. Is investing in fintech a smart idea? What are the
top fintech companies? All of the answers, as well as some additional nerdy
info, can be found here.

Table of Contents

 * Fintech Statistics
   * By 2022, the Fintech Sector is Estimated to be worth $310 Billion
   * By 2022, North America will have the most Financial Startups
   * There are 79 Unicorn Fintech Firms throughout the World as of January 2021
   * The Global X Fintech ETF’s Per-Share value more than Quadrupled from $15 in
     2016 to $47 in 2022
   * Stripe, Located in San Francisco, is the most Valuable Financial Technology
     Company in the United States, with a Market Capitalization of $35 Billion.
   * By 2022, Artificial Intelligence will have saved the Insurance Sector $1.3
     Billion.
   * By 2022, Digital Wealth Management Firms with a Retail Focus are
     Anticipated to have $600 Billion in Assets under Management
   * Asian Businesses have a Long Track Record of Success Across the World


FINTECH STATISTICS

 * A large percentage of traditional financial firms (88 percent) expect part of
   their income to be lost to independent fintech firms during the next five
   years.
 * In the first half of 2020, fintech businesses received $25.6 billion in
   funding from around the world.
 * digital banking is gaining traction: 46% of consumers only utilise digital
   channels for their financial transactions.
 * To enhance client retention, 77 percent of conventional financial
   institutions aim to expand their attention on innovations.
 * Digital payments’ overall transaction value increased from $4.1 trillion in
   2019 to $5.2 trillion in 2020.
 * From $4.1 trillion in 2019 to $5.2 trillion in 2020, the overall transaction
   value of digital payments increased.
 * Investors who want to capitalize on emerging trends — i.e., electric vehicles
   or remote work — may want to check out “thematic” exchange-traded funds.
   These ETFs provide a way for investors to engage in so-called thematic
   investing, which generally means buying stocks or other investments that may
   benefit from a particular trend (source)


BY 2022, THE FINTECH SECTOR IS ESTIMATED TO BE WORTH $310 BILLION

In 2018, the industry garnered $128 worth of investment from throughout the
world. Experts predict that the industry’s compound annual growth rate (CAGR)
will be 25%. In other words, $310 billion is expected to be invested in the
sector by 2022. In 2018, fintech businesses got more than half of the $254
billion in yearly venture capital financing.


BY 2022, NORTH AMERICA WILL HAVE THE MOST FINANCIAL STARTUPS

North America has the most fintech startups, whereas Asia has the most
revenue-generating fintech businesses. There are 8,775 financial services
startups in North America, according to statistics. There were 7,385 people in
EMEA (Europe, the Middle East, and Africa), and 4,765 in APAC. (Asia-Pacific).
It’s amazing to observe how the number of fintech companies has skyrocketed by
2020. In North America, Europe, and the Asia Pacific, respectively, there were
about 5,600, 3,500, and 2,800 newly founded fintech in 2018 and 2019.


THERE ARE 79 UNICORN FINTECH FIRMS THROUGHOUT THE WORLD AS OF JANUARY 2021

A unicorn company is a privately owned firm with a market value of $1 billion or
more. Decacorns are valued at over $10 billion, while hectares are valued at
over $100 billion. As of the beginning of 2021, there were over 500 unicorn
firms valued at a total of $1,780 billion. According to data, six new fintech
unicorns earned this prestigious status in January 2021.


THE GLOBAL X FINTECH ETF’S PER-SHARE VALUE MORE THAN QUADRUPLED FROM $15 IN 2016
TO $47 IN 2022

Investors can have access to fintech investment opportunities through the Global
X Fintech fund. The stock’s share price and overall health have been steadily
rising in value, with no signs of decreasing in the near future.


STRIPE, LOCATED IN SAN FRANCISCO, IS THE MOST VALUABLE FINANCIAL TECHNOLOGY
COMPANY IN THE UNITED STATES, WITH A MARKET CAPITALIZATION OF $35 BILLION.

Stripe began as a payment processing service for small businesses in 2011. Among
the company’s current clients are Facebook and Amazon. As a result of these
high-profile hires, Stripe’s value has climbed to $35 billion.

Ripple, a $10 billion payment protocol and exchange network provider, is the
second-largest company, with a market valuation 3.5 times that of the
next-largest company.


BY 2022, ARTIFICIAL INTELLIGENCE WILL HAVE SAVED THE INSURANCE SECTOR $1.3
BILLION.

Fintech’s disruptive potential has generated a lot of discussions. Artificial
intelligence plays a major role in this. Computers can automate post-accident
data collection, analyze photos of accident scenes, and perform a number of
other activities in the insurance industry, allowing insurers to handle claims
faster and for less money. Savings of $1.3 billion are expected by 2021.


BY 2022, DIGITAL WEALTH MANAGEMENT FIRMS WITH A RETAIL FOCUS ARE ANTICIPATED TO
HAVE $600 BILLION IN ASSETS UNDER MANAGEMENT

The majority of this expansion has come from existing financial institutions.
This is due to the fact that emerging fintech businesses frequently provide low-
or no-fee stock trading and robo-advisor services, resulting in lower profit
margins.

Established businesses are also beginning to adopt this business model, thus the
future of these startups is questionable.


ASIAN BUSINESSES HAVE A LONG TRACK RECORD OF SUCCESS ACROSS THE WORLD

Because most worldwide leaders are headquartered in Asia, it appears that the
Asian market dominates the global financial technology sector. With a $16
billion value, Paytm deserves to be mentioned among the finest. The online
payment method originated in India and has recently grown in popularity. With a
$14 billion value and investors such as SoftBank and Uber, Grab is another
worldwide leader. Grab is a ride-hailing, food delivery, and digital payment
service company founded in Singapore.

According to global fintech statistics, GoJek, which is based in Indonesia, is
another of the top fintech companies. This ride-hailing and online payment firm
have received a $12 billion valuation. No fintech, on the other hand, comes
close to the Ant Group of China. Remember this name the next time you’re curious
about the world’s largest Fintech firm. It has a current market capitalization
of $131 billion dollars. This comes as no surprise given that the Ant Group owns
Alipay, the country’s largest digital payment network with over a billion users.

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