13 NEW FinTech Industry Stats (2022)

by Josh Howarth - January 14, 2022

This page features a range of FinTech statistics worth noting in 2022.

As a whole, the financial technology space is making fast strides across many different financial sectors.

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Searches for "FinTech" have increased massively since 2015

FinTech investment and consumer adoption are on the rise. But to what extent? And where is this industry headed?

Contents

FinTech Industry Size

The number of FinTech startups has more than doubled in two years (BCG)

As of November 2021, there are over 26,000 FinTech startups worldwide.

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This figure has grown dramatically over the past few years (up from only around 12,000 fintech startups in 2019).

Broken down by region, the growth in FinTech startups since 2019 is as follows:

  • Americas - 5,779 to 10,755 (↑ 86.1%)
  • EMEA (Europe, the Middle East, and Africa) - 3,583 to 9,323 (↑ 160.2%)
  • Asia Pacific - 2,849 to 6,268 (↑ 120%)

Global FinTech industry revenue has increased by 97% since 2017 (Deloitte)

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In 2017, global FinTech industry revenue totaled approximately $90.5 billion.

That figure is expected to reach around $179 billion this year. And is predicted to reach $213 billion in 2024.

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Here is a full breakdown of FinTech industry revenue* between 2017 and 2024:

Year Americas EMEA Asia Pacific Total Change over the previous year
2017 32.8 21.5 36.2 90.5 -
2018 39.6 22.6 43.0 102.2 12.9%
2019 47.5** 23.8** 50.9** 122.2** ↑ 19.6%**
2020 55.4** 26.0** 61.1** 142.5** ↑ 16.6%**
2021 62.2** 27.1** 72.4** 161.7** ↑ 13.5%**
2022 65.6** 29.4** 83.7** 178.7** ↑ 10.5%**
2023 69.0** 31.7** 96.1** 196.8** ↑ 10.1%**
2024 71.3** 32.8** 108.6** 212.7** ↑ 7.1%**

*converted from euros **2018 prediction

FinTech Investment Statistics

FinTech industry investment has grown by over $200 billion in seven years (KPMG)

As FinTech Revenue has grown, so too have investments in the industry. Total investment has varied each year but there is a general upwards trend over the last decade.

In 2012, investment in FinTech totaled $4 billion. This increased year-over-year until 2015, reaching $67.1 billion - a 17x increase.

This figure then slowly declined before surging to $147.9 billion in 2018. And increasing further to $215.4 billion in 2019.

Broken down further, here are the quarters with the largest FinTech investment between Q1 2014 and Q2 2021:

  • #1 - Q3 2019 - $144.7 billion
  • #2 - Q4 2020 - $63.5 billion
  • #3 - Q1 2021 - $50.7 billion
  • #4 - Q2 2021 - $47.3 billion
  • #5 - Q4 2018 - $45.3 billion

In the first half of 2021, investment in FinTech companies reached a record-breaking $98 billion - a $19.9 billion increase in the second half of 2020.

The Americas made up over 75% of all FinTech investments in 2020 ($79.2 billion).

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EMEA ($14.4 billion) and the Asia Pacific ($11.2 billion) account for under 15% each.

M&A makes up over half of the FinTech investment (Altfi)

The source of FinTech investment has changed rather dramatically over the last half-decade.

Back in 2014, private equity (36%) and IPO (34%) dominated FinTech investment. M&A accounted for 18% and venture capital investment made up 10% of total FinTech investment.

Fast forward to 2019, M&A made up over 54% of FinTech investment, while venture capital investment almost doubled to 19%. By contrast, private equity (15%) more than halved and IPO (3%) dropped by 31% in terms of the distribution of total FinTech investment.

VC FinTech Funding

Venture capital investment has consistently topped $40 billion per year (CB Insights)

Venture capital funding in the FinTech industry more than doubled between 2017 and 2018. And has remained fairly consistent since.

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Here is a breakdown of the last few years of VC funding in the FinTech space:

Year VC Funding % Change Number of Deals % Change
2016 $23.53 billion - 1,609 -
2017 $23.14 billion ↓ 1.67% 1,978 ↑ 22.93%
2018 $48.33 billion ↑ 108.86% 2,390 ↑ 20.83%
2019 $43.99 billion ↓ 8.98% 2,361 ↓ 1.21%
2020 $43.11 billion ↓ 2% 2,081 ↓ 11.86%
Q1 2021 $22.78 billion - 614 -

North America is responsible for more than half of all FinTech VC funding (CB Insights)

Looking closer at Q1 2021, North America dominates VC funding in FinTech companies.

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Below are VC FinTech funding stats for Q1 2021 split by region:

  • North America - $12,822 million (56.3%)
  • Europe - $5,049 million (22.2%)
  • Asia - $3,668 million (16.1%)
  • South America - $999 million (4.4%)
  • Australia - $193 million (0.8%)
  • Africa - $45 million (0.2%)

Three different FinTech sectors receive over $5 billion a year in VC funding (CB Insights)

Within the period of 2016 and Q1 2021, capital markets were the highest venture capital-backed FinTech sector ($8.07 billion).

This was followed by payments ($6.03 billion) and wealth management ($5.43 billion).

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Here’s a detailed look at the distribution of VC funding within the FinTech industry over the last few years:

Rank Sector Funding
#1 Capital markets $8.07 billion
#2 Payments $6.03 billion
#3 Wealth management $5.43 billion
#4 Digital lending $3.97 billion
#5 SMB $3.36 billion
#6 Banking $3.27 billion
#7 Real estate $2.42 billion
#8 Insurance $2.30 billion

Leading FinTech Companies

Ant Grou’s market value is over 4x more than any other FinTech company (FinTech Magazine)

In terms of FinTech companies, Ant Group (an affiliate of Alibaba Group) leads the way for market value in 2020 with $150 billion.

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Searches for "Ant Group" have spiked near the end of 2020

This valuation dwarfs the second-placed payment processing software, Stripe. And the rest of the leading FinTech companies.

Five other FinTech companies pass the $10 billion mark.

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Here are the top 10 FinTech companies by market value as of 2020:

Rank Company Market Value
#1 Ant Group $150 billion
#2 Stripe $36 billion
#3 Adyen $22 billion
#4 Paytm $16 billion
#5 Robinhood $11.2 billion
#6 Klarna $10.6 billion
#7 Nexi $8.2 billion
#8 Coinbase $8 billion
#9 Square $6 billion
#10 Wise $5 billion

Of those top 10 FinTech companies, four are considered unicorns (Stripe, Robinhood, Klarna, Coinbase).

The US is the home of several leading FinTech firms (Forbes)

Many of the highest-valued FinTech companies are based in the US. This includes Stripe, Robinhood, Klarna, Coinbase, and Square from the above table.

According to Forbes, six US FinTech companies were worth over $10 billion in 2020.

FinTech Adoption Rates

FinTech-based money transfers and payments have grown by over 50% in four years (EY)

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Consumer adoption rates have increased rapidly across the FinTech industry in recent years.

Perhaps most notably, money transfers and payments have quickly become associated with FinTech companies. In 2015, 18% of people were estimated to use some form of FinTech money transfer or payment service.

This figure increased by over 2.5x in 2017 to 50%. And grew further to 75% in 2019.

Other categories within the FinTech industry have also experienced strong growth during this time period.

Below is a breakdown of adoption rates in FinTech categories between 2015 and 2019:

Category 2015 Adoption 2017 Adoption 2019 Adoption 2015-2019 Change
Money transfer and payment 18% 50% 75% ↑ 57%
Savings and investments 17% 20% 34% ↑ 17%
Budgeting and financial planning 8% 10% 29% ↑ 21%
Insurance 8% 24% 48% ↑ 40%
Borrowing 6% 10% 27% ↑ 21%

Around 9 in 10 Chinese citizens use FinTech banking, payment, and financial management solutions (EY)

Looking at individual countries, China led the way in terms of FinTech banking and payment adoption in 2019 with 92%. In fact, China is the front-runner in terms of FinTech adoption across the board.

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Here’s a closer look at five countries’ Fintech adoption rates across different FinTech categories:

Country Banking and payment Financial management Financing Insurance
China 92% 91% 89% 62%
US 52% 49% 41% 31%
Mexico 49% 36% 31% 23%
South Africa 47% 43% 34% 26%
UK 41% 37% 34% 24%
Total 56% 51% 46% 33%

US personal loan agreements using FinTech have increased by 33% in five years (TransUnion)

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Taking a closer look at the US, digital banking has been on the rise over the last five years.

In 2018, an estimated 61.3% of Americans used some form of digital banking. This figure has increased year-over-year by at least 0.5%.

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This year, approximately 65.3% of the US population uses digital banking.

Leading up to 2018, Americans had increasingly sourced personal loan agreements using FinTech. Between 2013 and 2018 there was a year-over-year growth from 5% to 38%.

What the Experts Say

Most senior banking executives believe FinTech has a large impact on the wallet and mobile payments (Capgemini)

digital-wallets-min.pngSearches for "digital wallet" are up over 700% in the last 10 years

A recent survey found that banking executives believed non-traditional financial firms were having a notable impact on certain sections of the financial industry.

Here is a breakdown of the proportion of senior banking executives that believed FinTech companies were having a large impact in 2018 (per section):

  • Wallets and mobile payments - 66.7%
  • Cards and other traditional payments - 62.5%
  • Savings and checking accounts - 33.3%
  • Value-added services - 29.2%
  • Loans/mortgages - 12.5%
  • Wealth and asset management services - 8.3%

As you can see, these beliefs reflect many of the increased adoption rates seen above. And proved to be a relatively strong indicator of FinTech growth in these sections.

Conclusion

That concludes our dive into the FinTech space.

It is clear that FinTech is very much a part of the future in finance. And it’s an industry well worth monitoring in the coming years.

Written By
Josh Howarth
Co-founder of Exploding Topics.
548 Market St. Suite 95149
San Francisco, California
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