FinTech Development in 2020–2022
Technologies are everywhere you go. Thus, it would be useful to know the correct way to navigate through them. Being one of the most rapidly growing industries these days, fintech offers benefits worth grasping by all kinds of businesses. Since the viral threat hasn’t gone away yet, more and more consumers prefer to avoid any personal contact by “going online.” Due to this, many industries around the globe have turned to fintech to respond to the consumer demand for non-contact banking, payments, and delivery services.
Statistics and Trends
Considering the data collected by Statista.com and other websites, some trends have become noticeable in fintech development:
- 66.7% of bank executives believe fintech will impact wallets and mobile payments globally.
- 38% of U.S. personal loans are granted by fintech.
- In 2020, there were about 9,000 fintech startups in America, about 7,400 startups in Europe, the Middle East, and Asia, about 4,800 startups in the Asia Pacific region.
- The total value of the fintech market is expected to reach approximately $310 billion in 2022.
- As of 2019, 47% of companies from other economic segments wanted to cooperate with fintech to ensure stable growth and development, according to the PwC survey, and this trend continues.
These facts are not surprising since fintech offers fast, secure, and modern solutions for other businesses. The banking industry and financial companies are the first to crave mutually beneficial collaboration. Mobile banking has considerably consolidated its positions and become almost as natural as the traditional sort. That is why European banks spent up to 30% of their IT budget on boosting their technical equipment and creating an environment for digital currency transactions. American banks did not have to catch up with their European colleagues and spent up to 40% of their IT budget on the same (according to Statista.com).
As for digital banking, the statistics(Statista.com) also speak in favor of fintech:
- Almost 66% of Americans are expected to use digital banking constantly in 2022.
- By 2022 the percentage of mobile transactions will grow by 121%. They will represent 88% of all banking transactions.
- Cash is losing its popularity with the population. They prefer to pay and lend money online. Peer-to-peer lending is expected to rise up to $1,000 billion by 2025.
- PayPal has become the most popular mobile payment platform, with the total value of transactions reaching $221.7 billion.
Digital wallets are consistently replacing traditional ones. The market giants like Google Pay, Apple Pay, Samsung Pay, and others let their users store a digital version of their credit cards and pay for the goods this way. The latest models of smartwatches allow us to pay at a supermarket just with the movement of the hand. And it’s only the beginning. Such a booming growth in the fintech industry could not help but influence cryptocurrency and its environment. According to the TMR report, the cryptocurrency market will reach a value of almost $7 billion by the end of 2025. What is more, about 80% of financial service incumbents plan to implement blockchain in fintech for in-product systems by 2022.
An astute reader will notice that fintech is now at the dawn of its glorious future development. All fundamental branches of the economy have plans to adopt fintech solutions and make them natural for the consumers. What does it mean for us? At first, fintech turns out to be a tempting industry for investment. Secondly, most traditional services will sooner or later transfer their activity to the digital environment. Sometimes, being conservative is not bad at all. We shouldn’t forget, though, that only the fittest will survive. Judging by the statistics, the fintech industry is far from extinction.