Earlier this year I had discussed the state of the financial technology sector, otherwise known as FinTech. This article will serve as a brief update and is based upon an infographic developed by DealSunny. A detailed discussion explanation is provided at DealSunny and I have highlighted a few of the key points that I found of interest.
-The blockchain and P2P financial platforms are continuing to drive progress due largely to lower fees and added convenience.
-Everything including banks, retailers, and individuals are being impacted. Personally, I may attest to this as most of my financial transactions have moved to electronic platforms and services.
-There is presently 25.8 billion in total funding making its way through FinTech
The following are some fascinating statistics concerning FinTech:
-43.4% adopt fintech because it’s easy to get started. Simply enter an e-mail from the convenience of your mobile device.
-15.4% switched to modern fintech because of more attractive rates and fees.
-12.4% of fintech users say they like the wide access to different products and services.
The following are a summary of FinTech related facts provided by DealSunny.com:
-The highest valued fintech startup is Chinese. I have found in my experience that for some reason it is easier to start global than local as international customers are often likelier to try a new solution, this may hold true for fintech as well.
-Around half of all banks have or will be opening technical innovation activities over the next two years. This appears mostly to be accomplished by the innovation through acquisition method.
-Algorithms are replacing humans. An interesting trend is that algorithms are replacing humans in the role of financial advisor.
-Governments are realizing that fintech development will equate to a prosperous economy and are therefore easing fintech development through tax incentives.
-Lending is the most heavily invested segment of fintech, followed by payment processing.
Within the detailed inforgraphic I found the following points to be of interest:
-There are now 1,362 FinTech companies across 54 countries
-FinTech has $25.8 billion in total funding with $44 million average funding per company
-The leading FinTech hubs are New York, London, Singapore, and Tel Aviv, with the predicted future hubs being Oslo, Amsterdam, Copenhagaen, Stockholm, and Helsinki
-The countries attracting the most FinTech investment are the United States ($10B), UK & Ireland ($623M), Nordic Countries ($345M) Netherlands ($306M), and Russia ($124M)
-40% of banks have open technical innovation activities while 56% are expected to set one up in the next two years
Overall the FinTech industry looks as if it is poised for future growth. As FinTech continues to permeate society, FinTech could very well explode once the mass global population adopts FinTech. In my opinion, this will be driven mainly by younger users who are accustomed to having everything within their mobile device and international developing countries who may not have the existing financial infrastructure and have the opportunity to start fresh with FinTech without the burden of legacy infrastructure.
The original infographic and detailed article may be found at DealSunny.