10 statistics about fintech that will blow your mind
Fintech is increasingly changing the way business is done globally. For the first time in history, both start-ups and established businesses have easy access to alternative sources of finance. Check out the below infographic on 10 statistics about fintech that will blow your mind.
Fintech, or the provision of financial services through technological devices, has made it easier for borrowers to apply for and get their loans disbursed quickly after a simple credit assessment. In addition to providing loans, Fintech also provides services like money transfer, peer to peer lending (P2P), trading platforms, mobile payments and many others.
Thanks to Fintech, both startups and established businesses no longer have to go through long, drawn out assessments and a nail-biting wait to find out whether they qualify for financing or not.
The ease of use and access, low-interest rates, innovative products and many other attractive features mean that more and more people are choosing to use Fintech for their financial needs. Fintech is the future of financial services, poised to grow by leaps and bounds over the next several years.
Here are 10 mind-blowing facts about the Fintech industry, with numbers.
1. Global investment in Fintech currently stands at a staggering $49.7 billion. From 2010 to 2015, the largest amount of investments had been received by the USA, UK & Ireland, Europe, China, and India. Investment has more than tripled over the last few years, jumping from $4 billion in 2013 to $12 billion in 2014.
2. Finance & lending is the Fintech category that receives the largest amount of investment dollars with 19% of total investment going into it. Processing & payments category receives 14%, while Mobile wallet, authentication, and remittance receive 10, 7 and 7% respectively. Other growing Fintech areas include P2P lending, mobile banking, prepaid cards, and networks.
3. There are 1,362 Fintech companies in 54 countries around the world with the USA, India, UK & Ireland, Israel, and Germany having the most Fintech start-ups.
4. Government support for Fintech is huge, with many Fintech companies receiving tax incentives, subsidized loans, and other benefits to encourage their growth. Governments like the UK have invested heavily in cyber security to protect companies from fraud, hacking, and other threats. The USA tripled its investments in accelerators and incubators to help start-ups connect with investors while other countries have launched initiatives that channel full or co-financing into Fintech start-ups. Hong Kong has set aside $250 million for the development of businesses in this sector while Luxembourg has promised unlimited support to entrepreneurs who choose to launch start-ups in the country.
5. 43.4% of people who use Fintech services choose to do so because of ease of access. 15.4% of users state that lower rates are what attract them to Fintech while access to a wide range of products, better online experience and greater levels of trust are other reasons for the popularity of Fintech.
6. Fintech is growing faster than other industries for several reasons. First of all is the fact that financial services are the biggest industry in the world. Secondly, more and more people are accessing financial services through the use of mobile devices which creates opportunities for even greater growth for Fintech companies. Finally, the great user experience is causing more and more people to choose Fintech companies over banks.
7. The top 5 Fintech firms globally are: Lufax, an international finance trading company, Square, a provider of smartphone card readers, small business loans and online payments, Markit, the UK based provider of financial information and data, Stripe which does online payments and Lending club, which bypasses middlemen to lend directly to customers.
8. The countries with the friendliest business climate for Fintech are the USA, Israel, and the United Kingdom. The top Fintech hubs include New York, London, Singapore and Tel Aviv.
9. The top Fintech unicorns with the highest evaluation are the Chinese start-up Lufax and the US-based start-ups Stripe, Zenefits, Social Finance, and Credit Karma.
10. Fintech companies have received a total of $25.8 billion in funding to date, with each company receiving an average amount of $44 million.
The Fintech industry is expected to grow exponentially over the next few years and change the way financial services are provided around the world. Thanks to the provision of a wide range of products that are easy to access, industry experts estimate that Fintech will slowly edge out traditional financial institutions like banks. The growth of Fintech spells good news for customers as they will be able to access necessary financials services at competitive prices and interest rates.
This article was compiled based on research by DealSunny, the Indian number one source for online coupons and special offers
This article goes to show how important fintech is going to be in the future. And this is only the top of the iceberg, companies will keep growing, receive more funding, and investments will skyrocket.