How much money is in fintech?
As of 2023, the fintech space is worth over $226 billion. There are approximately 30,000 fintech startups. Around 90% of Chinese citizens use fintech banking. Visa is the largest fintech company with a valuation of almost half a trillion USD.
A total of USD 7475 was raised by the FinTech sector in 2021, USD 4041 million in the previous calendar year, from January, 2022 to December, 2022 and about USD 2982 has been raised till now, from January to December, 2023. In CY23, the highest was raised by payments giant PhonePe.
The global fintech market size was USD 257.26 billion in 2022. It is expected to reach USD 882.30 billion by 2030.
According to the latest available data, the global fintech market is worth approximately $167.54 billion. Fintech is rapidly reaching new heights as consumers continue to switch over from traditional in-person banking and embrace new solutions such as e-wallets, mobile banking, and cryptocurrency.
In 2023, the total revenue of the industry was estimated at 79.38 billion U.S. dollars. According to Statista Market Insights, the revenue of the global fintech sector is forecast to increase further in the coming years, exceeding 141.18 billion U.S. dollars in 2028.
The Global Fintech Market is valued at USD 133.84 Billion in the year 2022 and is projected to reach a value of USD 556.58 Billion by the year 2030.
US Fintech Market Analysis
The United States Fintech market reached a size of USD 4 trillion in the current year and registered a CAGR of 11% over the period of the forecast.
How much does a Fintech make? As of Feb 17, 2024, the average annual pay for a Fintech in the United States is $123,495 a year. Just in case you need a simple salary calculator, that works out to be approximately $59.37 an hour. This is the equivalent of $2,374/week or $10,291/month.
#1 Fintech is the new normal
Eight in ten Americans (80%) used digital apps and services to manage their money in 2022, and over half used fintech daily. The average consumer uses three fintech apps, with payments, bill pay, tax filing, online banking, investing, budgeting, and lending emerging as the top use cases.
Visa and Mastercard are the two biggest fintech firms by market value, with a collective market capitalization of $800.7 billion. China is home to the second-most highly valued fintech industry, with its financial technology giants worth a combined $338.92 billion in total market capitalization.
Why is fintech so successful?
Fintech vs. Traditional Banks: Fintech apps offer transparent, user-friendly solutions, outshining old-fashioned banking apps. They prioritize customer-centricity, disrupting outdated banking practices and making services easily accessible via mobile devices.
McKinsey's research shows that revenues in the fintech industry are expected to grow almost three times faster than those in the traditional banking sector between 2023 and 2028. These trends are also coinciding with—and in many ways catalyzing—the maturation of the fintech industry.
The fintech industry has been growing at a rapid pace, with the global fintech market reached $310 billion in 2022 according to Plaid. While this is a significant amount, it is still a fraction of the nearly $26 trillion financial services market.
One of the main reasons for this continued growth is the increasing number of unbanked or underbanked people. According to a report from the World Bank, 1.7 billion adults worldwide do not have a bank account. Fintech companies have an extraordinary opportunity to provide these people with access to financial services.
The Fintech industry employs over 300,000 people worldwide.
Combined, the U.S. produces the most value in terms of fintech, with eight of the top 15 highest-valued financial technology companies in the world worth a combined $1.2 trillion based stateside.
As of 2023, the fintech space is worth over $226 billion. There are approximately 30,000 fintech startups.
Largest fintech ecosystems
According to the report, the United States is home to 134 unicorns, and, therefore, produces the most value in terms of fintech. Of the top 15 highest-valued financial technology firms globally, eight are from the US.
And while fintech is a highly competitive industry, both in terms of companies competing for market share as well as professionals competing for the top jobs, there is plenty of room for those working in the sector to make upward or lateral moves as there are new opportunities for the right people becoming available ...
Robo-advisors, algorithmic trading, and AI-driven risk assessment are examples of how FinTech is leveraging technology to achieve unprecedented levels of efficiency. These advancements are in line with the objectives of Industry 4.0, which aims to automate and optimise processes through the use of smart technologies.
Is fintech a good major?
A Bachelor's in FinTech offers a unique blend of financial expertise and technological skills, making graduates highly sought-after in the finance industry.
PayPal is a premier fintech business that's not afraid to try new ventures in leading-edge tech fields, such as the blockchain. However, it seems that some retail investors aren't on board with PayPal's innovative spirit this year.
Venmo is one of the most successful and popular FinTech apps in the United States, and even though its most popular service is free, Venmo makes money and a lot of it.
| Fund | Expense Ratio |
|---|---|
| Stripe, Inc. | $50 billion |
| Revolut | $33 billion |
| Chime Financial, Inc. | $25 billion |
| Rapyd | $15 billion |
Fintech companies face unique risks in four primary areas: regulation, cybersecurity, financial and business, and reputation.
