The fintech market is growing with each passing year.
There are many things contributing to the expanding market.
Increasingly productive technological innovations within the space, improving accessibility, and reduced costs are each major factors.
And as a result, consumer demand is rocketing.
We’ll explore these further and delve into the stats behind the growing industry:
- Fintech Industry Highlights
- Fintech Market Size
- Fintech Market Growth Projections
- Growth Drivers In The Fintech Space
- Key Players In The Fintech Market
- Fintech Market Breakdown By Region
- Digital Banking Growth
Fintech Industry Highlights
- The global fintech market is estimated to be worth $167.54 billion
- The fintech space is set to surpass $400 billion by 2027
- The fintech market is growing at a CAGR of 25.18%
- Over 26,000 fintech startups were launched in 2021
- In total, an estimated $8.49 trillion of digital payments were made in 2022
Fintech Market Size
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 fact, in just one year, the fintech market grew from an estimated $105.41 billion in 2021 to $131.95 billion in 2022.
Source: Market Data Forecast
Fintech Market Growth Projections
By 2028, this fintech industry is projected to grow to$514.9 billion at a compound annual growth rate (CAGR) of 25.18%.
Here’s a look at how the fintech market is set to progress over the next half-decade:
| Year | Market Valuation Calculated Based on CAGR |
| 2021 | $105.41 billion |
| 2022 | $131.95 billion |
| 2023 | $165.17 billion |
| 2024 | $206.76 billion |
| 2025 | $258.83 billion |
| 2026 | $324 billion |
| 2027 | $405.58 billion |
| 2028 | $514.9 billion |
Source: Market Data Forecast
Growth Drivers in the Fintech Space
There are several key factors behind the continued rapid growth within the fintech space.
Advancing automation tech and an ever-growing array of online and app-based services are perhaps the most important factors driving fintech’s growth. Improved accessibility and reduced costs mean fintech solutions are more readily available to would-be consumers.
In addition, lenient regulations in the space and changing consumer demands/expectations have further boosted the market.
Source: MadAppGang
Key Players in the Fintech Market
- Visa (US)
- Ant Financial (China)
- Mastercard (US)
- Tencent (China)
- Intuit (US)
- Stripe (Ireland)
- PayPal (US)
- Fiserv (US)
- Klarna (Sweden)
- Nubank (Brazil)
- Adyen (Netherlands)
- Checkout.com (UK)
- Gojek (Indonesia)
- Square (US)
- Revolut (UK)
- FTX (Hong Kong)
- Chime (US)
- Ripple (US)
- Lufax (China)
- Blockchain.com (Luxembourg)
Source: CFTE
Fintech Market Breakdown by Region
The fintech market is seeing a sharp increase in startups popping up.
The Americas are leading the way in terms of region. But Europe, the Middle East, and Africa (EMEA) are catching up.
Here’s a breakdown of new fintech startups by region:
| Year | Americas | EMEA | Asia-Pacific | Total |
| 2018 | 5,686 | 3,581 | 2,864 | 12,131 |
| 2019 | 5,779 | 3,583 | 2,849 | 12,211 |
| 2020 | 8,775 | 7,385 | 4,765 | 20,925 |
| 2021 | 10,755 | 9,323 | 6,268 | 26,346 |
| 2023* | 11,651 | 9,681 | 5,061 | 26,393 |
* As of May 2023
Source: BCG
Digital Banking Growth
Digital banking is the largest segment within the fintech space. In the US, digital banking has grown steadily in adoption year-over-year from 61.3% in 2018 to 65.3% in 2022.
And an estimated $8.49 trillion of digital payments will be processed globally during the course of this year. Increasing at a CAGR of 12.31% until 2027.
China has the highest cumulative transaction value at $3.5 trillion.
Sources: eMarketer, Statista
Conclusion
The fintech market is going from strength to strength.
Steadily increasing adoption, greater consumer accessibility, and a growing number of startups in the space all combine for a bright future.
FAQs
In 2024, the fintech market size will exceed $340 bn, and by 2032, this figure will increase almost fourfold and reach $1,152 bn. Such rapid growth will provide a staggering compound annual growth rate (CAGR) of 16.5% and will push the rise of new fintech sectors and banking services.
What is the projected market size for fintech? ›
KEY MARKET INSIGHTS
The global fintech market was valued at USD 294.74 billion in 2023 and is projected to be worth USD 340.10 billion in 2024 and reach USD 1,152.06 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period (2024-2032).
What is the market size of fintech? ›
India is amongst the fastest growing Fintech markets in the world. Indian FinTech industry's market size is $584 Bn in 2022 and is estimated at ~$1.5 Tn by 2025.
What is the size of the fintech market 2025? ›
How quickly is fintech growing? ›
The largest market will be Digital Assets with a AUM of US$80.08bn in 2024. The average AUM per user in the Digital Assets market is projected to amount to US$96.05 in 2024. The Digital Assets market is expected to show a revenue growth of 17.38% in 2025.
How big is the fintech market in 2028? ›
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.
How much is the fintech market worth in 2024? ›
In 2024, the fintech market size will exceed $340 bn, and by 2032, this figure will increase almost fourfold and reach $1,152 bn. Such rapid growth will provide a staggering compound annual growth rate (CAGR) of 16.5% and will push the rise of new fintech sectors and banking services.
How big is the fintech market in 2030? ›
A report from Fortune Business Insights projected that the fintech market size is projected to grow to USD 882.30 billion by 2030, exhibiting a CAGR of 17% during the forecast period (2023-2030). The report said: “The pandemic accelerated the digital transformation of financial services.
What is the future of fintech? ›
The future of fintech will likely include significant expansion in the next few years. As consumer demand for convenient digital financial apps rises and traditional financial institutions increasingly partner with or adopt fintech offerings, the line between fintech startups and established players will blur quickly.
Who is the biggest fintech company? ›
Second, despite short-term pressures, fintechs still have room to achieve further growth in an expanding financial-services ecosystem. McKinsey estimates that fintechs will grow at roughly three times the overall banking industry's growth rate between 2022 and 2028.
What is the future of fintech in 2050? ›
In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.
Why is fintech booming? ›
The global fintech industry is booming, with customer demand driving growth. In developing nations, digital innovation by fintech companies has allowed entire economies to bypass the high-street bank system, and offer a multitude of options to people who would likely be excluded from traditional banking systems.
What is the future outlook for fintech? ›
Fintech increasingly provides financial stability during uncertain times. The economic downturn of 2022 saw people gravitate to fintech apps to better deal with financial instability and economic uncertainty. 56% said economic factors make them more reliant on digital financial tools to manage their finances.
Which countries are growing fastest in fintech? ›
While US is home to 134 unicorns and produces the most value in terms of fintech, UK took second place with 27 fintech unicorns and India secured the third position with 17 fintech unicorns in 2023 so far.
Why is fintech declining? ›
Impact of Rising Interest Rates and Inflation
With central banks across the world responding to high inflation by increasing interest rates, borrowing costs have accordingly risen. For fintech companies, this often results in less accessible capital, since loans become more expensive and consumer spending tightens.
What is the market size of AI in fintech? ›
The global AI in Fintech market size was valued at $8.23 billion in 2021, and is projected to reach $61.30 billion by 2031, growing at a CAGR of 22.5% from 2022 to 2031.
What are the predictions for fintech? ›
Here are Kansal's top predictions for fintech in 2024.
- Expect more scrutiny and regulation. ...
- Security and compliance will remain a challenge. ...
- Cross-border payments will command attention. ...
- Fintechs will seek to expand consumer success to other functions. ...
- Artificial intelligence holds a lot of promise.
What is market sizing and forecasting? Market sizing is necessary for a company to understand its target market size and market share. Forecasting involves estimating market growth based on various macro and market dynamics in order to estimate market size and share for the next 3 or 5 years.
Is fintech market size projected to grow to $882 billion by 2030 as advanced technologies and services expand? ›
According to a report by Fortune Business Insights, the fintech market is expected to reach USD 882.30 billion by 2030 driven by the growth of advanced technologies and services. The report attributes this growth to the accelerated digital transformation of financial services during the pandemic.
