Fintech Market Growth Statistics - Blue Tree Digital (2024)

The fintech sector has witnessed exponential growth over the past decade, revolutionizing traditional financial services through innovative technological advancements.

According to data through 2022, the global fintech market exhibited a remarkable trajectory, with a projected market value surpassing $492 billion. This growth has been primarily fueled by increasing consumer demand for seamless, efficient, and convenient financial solutions.

Key segments within fintech, such as digital payments, blockchain technology, robo-advisors, Insurtech, and lending platforms, have experienced substantial expansion. Digital payment solutions, including mobile wallets and contactless payments, have seen explosive adoption. Driven by the proliferation of smartphones and evolving consumer preferences for cashless transactions.

Investment in fintech startups and companies has also soared, with venture capitalists and established financial institutions pouring billions of dollars into innovative fintech ventures.

Additionally, regulatory support and technological advancements, such as artificial intelligence, machine learning, and big data analytics, have further propelled the industry’s growth by enhancing security, personalization, and efficiency in financial services.

Fintech Segments

Fintech, a dynamic and expansive industry, can be segmented into various categories, each catering to specific financial needs and transforming traditional practices. These segments include payments, lending, digital banking, and wealth operations, each playing a huge role in the financial landscape.

1. Payments: This segment encompasses digital payment solutions, mobile wallets, contactless payments, and peer-to-peer (P2P) transactions. Fintech innovations in payments have revolutionized how individuals and businesses conduct transactions, emphasizing convenience, speed, and security. Mobile payment apps and platforms facilitate seamless money transfers, online purchases, and in-store transactions, reducing reliance on cash and traditional banking methods.

2. Lending: Fintech lending platforms leverage technology to streamline the borrowing process, offering quicker access to loans, often bypassing traditional banks. Peer-to-peer lending platforms connect borrowers with investors directly, while online lenders utilize algorithms and alternative data for credit assessment, enabling quicker approvals and personalized lending options for individuals and small businesses.

3. Digital Banking: This category focuses on digitizing traditional banking services, providing customers with online banking interfaces, mobile apps, and digital-only banking experiences. Fintech-driven digital banks offer services without physical branches, delivering cost-effective, user-friendly, and often more accessible financial solutions, including checking accounts, savings, loans, and investment options.

4. Wealth Operations: Fintech companies operating in wealth management offer innovative investment and advisory services. Robo-advisors use algorithms and AI to provide automated, low-cost investment strategies, making wealth management accessible to a broader demographic. Additionally, investment platforms offer fractional investing, allowing individuals to invest in portions of high-value assets like stocks or real estate.

The continuous innovation and integration of technology within these sectors are reshaping consumer expectations, enhancing accessibility, and fostering greater financial inclusion globally.

Fintech Market Size and Value

Fintech market size and value serve as a testament to its rapid expansion and transformative impact on traditional financial services.

As an evolving sector encompassing digital payments, lending, digital banking, and wealth management, the Fintech market’s size and value metrics reveal its immense growth trajectory.

It is showcasing increased consumer adoption, investment inflow, and technological advancements that continue to redefine how individuals and businesses manage their finances.

Understanding these metrics is important for stakeholders, offering insights into trends, regulatory shifts, and competitive landscapes.

Here are some of the key FinTech Market stats:

• The fintech industry is worth approximately $194 billion in 2023 and is projected to reach $492 billion by 2028, growing at a compound annual rate of about 25.18% over the forecast period.
• As of 2023, the fintech space is worth $179 billion.
• Publicly traded fintechs represented a market capitalization of $550 billion as of July 2023, a two-times increase versus 2019.
• The global fintech market is projected to reach a value of USD 16,652,680 million by 2028, with a compound annual growth rate (CAGR) of 13.9% during the forecast period.
• The fast-growing fintech space is projected to reach $492 billion by 2028, growing at a CAGR of 16.8%.
• The global fintech market is projected to grow at a CAGR of around 20% between 2021 and 2026.
• The global insurtech market is expected to grow at a CAGR of 48.8% from 2021 to 2028, driven by the increasing adoption of digital insurance solutions and the need for personalized insurance products.
• The global blockchain in fintech market is expected to grow at a CAGR of 43.4% from 2021 to 2028, driven by the increasing adoption of blockchain technology in financial services and the need for secure and transparent transactions.
• The global robo-advisory market is expected to grow at a CAGR of 19.2% from 2021 to 2028, driven by the increasing demand for low-cost investment solutions and the rise of digital wealth management.
• The global peer-to-peer lending market is expected to grow at a CAGR of 29.7% from 2021 to 2028, driven by the increasing demand for alternative lending solutions and the need for faster and more accessible credit.
• In 2021, over 12,000 fintech startups are using AI globally.
• The global wealthtech market is expected to grow at a CAGR of 25.8% from 2021 to 2028, driven by the increasing demand for digital wealth management solutions and the need for more personalized investment advice.
• The Fintech’s Digital Investment market worldwide is projected to grow by 13.11% (2023-2027) resulting in a market volume of US$5.27tn in 2027.
• Fintech statistics show that the market will hit $37 Billion By 2026.
• The global financial technology market is expected to grow gradually and reach a market value of approximately $324 billion by 2028, growing at a compound annual rate of about 25.18% over the forecast period.
• The first six months of 2023 were quite challenging for the global fintech market, with total fintech funding and the number of fintech deals globally dropping from $63.2 billion across 2,885 deals in H2’22 to $52.4 billion across 2,153 deals in H1’23.
• The global fintech market is projected to reach $460 billion by 2025, growing at a CAGR of 23.8% from 2020 to 2025.
• The fintech industry is expected to reach a market size of $305 billion by 2025, growing at a CAGR of 22.17% from 2020 to 2025.
• The fintech sector, which currently holds a 2% share of the $12.5 trillion in global financial services revenue, is estimated to grow up to 7%, reaching $1.5 trillion by 2030.
• The fintech industry is expected to grow at a CAGR of 23.58% from 2021 to 2028, driven by the increasing adoption of digital payments and the growing demand for mobile banking services.
• The fintech sector, which currently holds a 2% share of the $12.5 trillion in global financial services revenue, is estimated to grow up to 7%, reaching $1.5 trillion by 2030.

Revenue Growth

The Fintech sector has experienced remarkable revenue growth, outpacing traditional financial institutions due to its innovative approach and technological advancements. This exponential revenue surge underscores the escalating demand for digital financial solutions, encompassing payment platforms, lending services, digital banking, and wealth management.

With consumers increasingly embracing tech-driven financial services and investors recognizing the sector’s potential, Fintech’s revenue growth reflects its role in reshaping the financial landscape.Understanding this rapid revenue growth is crucial, highlighting the sector’s transformative potential and the opportunities it presents for continued innovation and market expansion.

• Revenues in the fintech industry are expected to grow almost three times faster than those in the traditional banking sector between 2022 and 2028, with fintechs potentially posting annual revenue growth of 15 percent over the next five years.
• Fintech industry revenue was approximately $90.5 billion in 2017 and has grown by over 100% since then.
• Revenue growth rates among VC-backed public fintech companies have contracted, falling from a median of 39% YoY growth in 2022 to 20% growth in 2023.
• The digital payments segment of the fintech industry is expected to grow at a CAGR of 19.4% from 2021 to 2028, driven by the increasing adoption of digital payment methods and the rise of e-commerce.
• The global digital lending market is expected to grow at a CAGR of 18.9% from 2021 to 2028, driven by the increasing demand for alternative lending solutions and the need for faster and more accessible credit.
• The global digital wealth management market is expected to grow at a CAGR of 15.3% from 2021 to 2028, driven by the increasing demand for personalized investment advice and the rise of robo-advisory services.
• The global digital insurance market is expected to grow at a CAGR of 32.5% from 2021 to 2028, driven by the increasing adoption of digital insurance solutions and the need for more personalized insurance products.
• The global digital identity verification market is expected to grow at a CAGR of 13.3% from 2021 to 2028, driven by the increasing need for secure and reliable identity verification solutions in the digital age.
• The global digital asset management market is expected to grow at a CAGR of 15.2% from 2021 to 2028, driven by the increasing adoption of digital assets and the need for secure and efficient management solutions.
• The global digital banking platform market is expected to grow at a CAGR of 13.6% from 2021 to 2028, driven by the increasing adoption of digital banking solutions and the need for more convenient and personalized banking services.
• The global digital payment market is expected to grow at a CAGR of 13.5% from 2021 to 2028, driven by the increasing adoption of digital payment solutions and the rise of mobile commerce.
• The global digital remittance market is expected to grow at a CAGR of 13.3% from 2021 to 2028, driven by the increasing demand for faster and more affordable cross-border payment solutions.
• The global digital asset exchange market is expected to grow at a CAGR of 12.8% from 2021 to 2028, driven by the increasing adoption of digital assets and the need for secure and efficient trading platforms.

Regional Analysis

Fintech regional market analysis delves into the unique dynamics shaping the adoption and evolution of financial technology across different geographical areas. It examines how varying regulatory landscapes, cultural preferences, and technological infrastructures influence the growth and acceptance of fintech solutions within specific regions.

• Emerging markets are expected to fuel much of the revenue growth in the fintech industry. Fintech revenues in Africa, Asia–Pacific (excluding China), Latin America, and the Middle East represented 15% of fintech’s global revenues in the past year, and this is estimated to increase to 29% in aggregate by 2028.
• European fintech companies captured 20% of total global fintech investment in 2020.
• The global regtech market is expected to grow at a CAGR of 22.3% from 2021 to 2028, driven by the increasing need for regulatory compliance and the rise of digital solutions for compliance management.
• Indian fintech companies received 3.7 billion USD in funding in 2019.
• The Americas saw fintech funding climb from $28.9 billion in H2’22 to $36 billion in H1’23.

Investment Trends

Fintech investment trends capture the evolving landscape of financial technology funding, showcasing the changing preferences and priorities of investors. These trends illustrate where capital flows within the industry, reflecting shifts in technological focus, market segments, and geographic regions.

As fintech continues to disrupt traditional finance, understanding these investment patterns provides critical insights into emerging opportunities, technological innovations, and areas poised for significant growth, guiding both investors and industry players in navigating this dynamic and rapidly evolving sector.

• The total value of investments into fintech companies worldwide increased drastically between 2010 and 2019, when it reached 216.8 billion USD.
• In 2020, global fintech funding reached 105 billion USD.
• As of 2023, the fintech space is worth 179 billion USD.
• The fintech industry is projected to hit 37 billion USD by 2026.
• Fintech industry investment halved in H1 2023, reaching 164.1 billion USD.
• There are approximately 30,000 fintech startups.
• The total value of investments into fintech companies worldwide from 2010 to H1 2023 is 164.1 billion USD.
• The total value of investments into fintech companies worldwide increased drastically between 2010 and 2019, when it reached 216.8 billion.
• Seed-stage fintech investments totaled $539 million, down 56% from the first half of 2022.
• Early-stage fintechs attracted 64% less capital, with series A rounds generating $509 million, down from $1.4 billion in the third quarter of 2022.
• Growth-stage investments (series B and other growth rounds) fell 87% to $577 million.
• The payments segment, which historically drew more capital than any other fintech vertical, saw funding activity decline 61% to $1.23 billion from the year-ago quarter.
• Insurance technology came in just over $1 billion, and investment and capital markets technology dropped below the $1 billion mark, falling 20% and 26%, respectively.
• Digital lending pulled in $810 million, nearly half of its year-ago quarter funding amount, while financial media and data solutions drew only $480 million, down 31% from the previous year.
• Logistics and supply chain-focused fintech funding was well above all previous annual totals ($8.2 billion) in H1’23.
• ESG-focused fintech funding reached $1.7 billion in H1’23, ahead of 2022’s total.

In conclusion, the Fintech market has witnessed a remarkable surge in growth, underscored by its transformative impact on traditional financial services. The statistics reflect an industry rapidly evolving through technological innovations, increased investments, and widespread adoption worldwide. With segments like payments, lending, digital banking, and wealth operations experiencing substantial expansion, Fintech has revolutionized the way individuals and businesses engage with financial services.

The escalating market size, rising investment trends, and regional variations in adoption highlight the sector’s dynamism and potential for further disruption. As technological advancements continue to drive the evolution of Fintech, these statistics serve as crucial indicators of its resilience, adaptability, and pivotal role in shaping the future of finance.

Moreover, the statistics not only showcase the market’s current state but also project a promising future, indicating a trajectory toward greater integration of innovative solutions. Understanding and leveraging these growth statistics are fundamental for stakeholders to navigate the landscape, foster innovation, and seize opportunities within this ever-evolving and competitive market.

Sources:

1. Statista. (n.d.). Fintech. Retrieved from https://www.statista.com/topics/2404/fintech/

2. LinkedIn. (n.d.). Fintech investment market size & regional. Retrieved from https://www.linkedin.com/pulse/fintech-investment-market-size-regional

3. S&P Global. (n.d.). Fintech funding hits new low in Q3 2023 but late-stage investing resilient. Retrieved from https://www.spglobal.com/marketintelligence/en/news-insights/research/fintech-funding-hits-new-low-in-q3-2023-but-late-stage-investing-resilient

4. Statista. (n.d.). Fintech Worldwide – Statistics & Facts. Retrieved from https://www.statista.com/outlook/dmo/fintech/worldwide

5. Nimble AppGenie. (n.d.). Fintech statistics 2023. Retrieved from https://www.nimbleappgenie.com/blogs/fintech-statistics-2023/

6. McKinsey & Company. (n.d.). Fintechs: A new paradigm of growth. Retrieved from https://www.mckinsey.com/industries/financial-services/our-insights/fintechs-a-new-paradigm-of-growth

7. KPMG. (n.d.). Pulse of Fintech. Retrieved from https://kpmg.com/xx/en/home/industries/financial-services/pulse-of-fintech.html

8. CEO Review. (n.d.). Global Fintech Market Size Share & Analysis. Retrieved from https://www.ceo-review.com/global-fintech-market-size-share-analysis/

9. Zipdo. (n.d.). Fintech Statistics. Retrieved from https://zipdo.co/statistics/fintech/

10. Exploding Topics. (n.d.). Fintech Stats. Retrieved from https://explodingtopics.com/blog/fintech-stats

11. G2. (n.d.). Fintech Statistics. Retrieved from https://learn.g2.com/fintech-statistics

12. Market Data Forecast. (n.d.). Fintech Market Reports. Retrieved from https://www.marketdataforecast.com/market-reports/fintech-market