Financial Technology, or “FinTech,” has become the industry’s great disruptor; it’s a disruptive revolution that has transformed everything and everyone.
The industry is growing at an exponential pace.
FinTech is a simmering powerhouse for investment, fierce competition, and burgeoning demand.
Furthermore, one main context will characterize 2021: the growth of the connected customer, whose problems, desires, and expectations will accelerate product creation and influence the financial industry’s overall direction.
According to recent fintech figures, the COVID-19 pandemic has aided the industry’s adoption of cloud platforms and related solutions.
Fintech has already had a profound impact on the industry.
This is because many businesses are afraid of missing out.
When it comes to managing their money, customers expect a seamless digital experience.
Financial institutions must work hard to do this for them, otherwise they will lose out.
New alliances between FinTech startups, technology companies, and existing financial institutions have sprung up as a result of these expectations.
Here are some Fintech trends and statistics you should know;
- By 2022, the global financial services industry is expected to be worth $26.5 trillion.
- Global fintech investment hit 1,221 deals worth $26.5 billion in the first half of 2020.
- Digital payment is one of the most common fintech products, accounting for 25% of the industry.
- At least one fintech service or organization is known to 96 percent of global consumers.
- Consumers in 64 percent of countries have used one or more fintech platforms, up from 33% in 2017.
- Consumers prefer to interact with financial institutions that offer a single channel, such as social media or mobile banking applications, according to 60 percent of respondents.
- In the next decade, AI would control 95 percent of all customer interactions, with customers preferring technology interaction over human interaction.
- Since 2019, the use of cash at all points of sale has decreased by 42%, and it is expected to become the least-used payment form in four years.
- This year, 90 percent of smartphone users would make a mobile payment.
Mobile transactions are predicted to rise by 121 percent by 2022. This will account for 88 percent of all financial transactions in the future.
- Due to customer behaviour, e-commerce is one of the most significant growth factors in fintech, with a CAGR of 10–12%.
- For global money transfers and payments, customer fintech adoption is at 75%.
- In the next three to five years, 82 percent of conventional financial companies expect to expand collaboration with fintech companies.
- In the next five years, 88 percent of traditional financial institutions assume a portion of their market will be lost to independent FinTech firms.