Two women talking in a coffee shop. curve

Chart-Topping Fintech Stats for 2024


We’ve paired this article with a comprehensive guide to accounts payable. Get your copy of the Accounts Payable Survival Guide!

Financial technology has been the great disruptor. The growth rate of the industry is exponential. Also referred to as “fintech,” it’s a digital force that has changed the entire industry. Those who were reluctant to get on board are soon overshadowed by the competition.

The Fintech Industry

Fintech often comes with a large price tag. Usually, this is an upfront cost and can cause quite a bit of sticker shock. However, the technology is aimed to optimize financial services and banking. Cutting-edge innovations like artificial intelligence and blockchain are ushering new ways of doing business.

There are many fields affected by fintech, particularly:

  • Banking
  • Insurance
  • Personal finance
  • Electronic payments
  • Loans
  • Venture capital
  • Wealth Management

In the coming years, all of these are getting a digital facelift. The tides are turning and more than ever, companies need to get on board or risk sinking the ship. Brands who are pioneers in the fintech sector include:

  • Apple
  • Goldman Sachs
  • PWC
  • JP Morgan
  • Samsung
  • Amazon
  • Paypal

To drive the point home, we’ve compiled a list of some of the most recent stats to support the argument that fintech is the future and won’t be going anywhere, anytime soon.

General Stats

There are a lot of general arguments to make for the fintech market and working this into your business model. When it comes to market share and data analysis, the numbers always come out on top.

Consumer Experience

Contemporary expectations can only be met with the best technology. Think about it. Would you do business with a bank that didn’t have a website or offer a form of SaaS? It’s that simple and yet there are still financial institutions like this that exist. 

The organizations that put customer needs at the forefront of strategies are those that win the prospects and keep them. Besides, bank accounts are likely to be obsolete in another decade.

Mobility

The ability to perform any financial task with a smartphone and mobile app has shaped the user experience of banking. It’s important that the two world’s meet, so modern business can be accomplished. Payment service companies are leading this brigade.

  • This year, 90% of users will make a mobile payment with their smartphone.
  • By the year 2022, mobile transactions are projected to grow by 121%. This will eventually comprise 88% of all banking transactions.
  • Consumer spending in an app store is projected to increase by 92% to $157 billion worldwide in 2022.
  • By the year 2022, almost 78% of the United States millennial population will become digital banking users.
  • The use of cash at all point of sales has dropped by 42% since 2019 and is projected to be the least-used payment method within four years.

Power your entire partner payouts operations

98%

Customer Satisfaction

$50B+

Annual Transactions

4M+

Partners

4,000+

Customers

99%

Customer Retention

Blockchain Technology

Blockchain is a distributed ledger technology (DLT) that allows data to be stored globally on thousands of servers. It’s simply a means of two people/companies doing business and using a form of cryptocurrency (like bitcoin) as payment. The agreement is what forms the “block” in the chain. It’s a type of financial technology that is revolutionizing central banks and financial markets.

Artificial Intelligence

Another type of fintech, A.I. is intelligence demonstrated by a machine. This can come in many forms from simple automation to complex machine learning. In the financial sector, it is often used to perform menials tasks that a business would otherwise need to pay a worker to do. 

What the Future Holds

Fintech has already altered the market forever. Among traditional financial organizations, 82% plan to increase collaboration with fintech companies in the next three to five years. That’s because many companies fear they will lose out. 88% of incumbent financial institutions believe a part of their business will be lost to standalone fintech companies in the next five years. So, there is real fear there. 

Consumers demand a seamless digital experience when handling their funds. Financial companies must work to provide this for them or risk losing out. These expectations have given rise to new partnerships between fintech startups, technology companies, and established financial institutions.

It is not rare to see a fintech firm with a B2C model shift to a B2B approach. The brand then offers the technology to larger companies to access greater client pools.

Ultimately, fintech is no different than the technology that is disruptive in other industries (medical=martech). It would be wise, even for a small business, to consider a fintech investment for the future. Last year you may have been able to slide by, but once technology catches up, it surpasses you in nanoseconds.

About the Author

  • Linkedin

RELATED ARTICLES