Outline: 1、Introduction 2、Global distribution and development of fintech companies 3、Analysis of global fintech user growth trends 4、Revenue trends in the global fintech industry 5、Conclusions and prospects 6、Insight from KSCC
Introduction
Over the past decade, the fintech industry has evolved from a niche and obscure trend to a transformative force in the global financial sector. Originally associated with small startups, it now includes multi-billion dollar large enterprises. However, due to segmentation within the industry, the precise definition of fintech has become challenging. Online and mobile banking, digital payments, cryptocurrencies and blockchain, insurtech, wealthtech, artificial intelligence(AI), etc., are all classified as fintech because they combine innovation and technology in the financial industry.
Over the past five years, the fintech sector has witnessed a significant increase in the number of companies, particularly in the Americas region. At the same time, the number of fintech users around the world has also increased significantly, especially in the field of digital payments, and the global user base is expected to exceed 3.5 billion by 2024.
Global distribution and development of fintech companies
Data from 2018 to 2024 shows growth in the number of fintech companies in the Americas, EMEA (Europe, the Middle East and Africa), and Asia-Pacific. In the Americas in particular, the number of fintech companies has increased from 5,686 in 2018 to 13,100 in 2024, showing a significant growth trend. In contrast, growth in EMEA and Asia-Pacific was more flat. This trend reflects the differences in market maturity and investment environment in different regions.
The fintech investment landscape has seen a dramatic increase in investment in the fintech sector over the past decade, with global investment value reaching an all-time high in 2021. However, in 2022, investment activity has slowed due to the economic contraction and the impact of the COVID-19, particularly in the Americas, which may reflect market uncertainty.
The services of fintech companies, most of which originate in the United States and China, have become part of our daily lives. In January 2024, eight of the world’s top 10 fintech companies are from these two countries. The U.S. and China are prominent in this space, and Stripe which is a payment platform in Ireland, became the world’s most valuable fintech unicorn in 2022.
An in-depth analysis of fintech companies in the Americas, EMEA and Asia-Pacific reveals the characteristics of each market. The market in the Americas is growing rapidly due to the innovation environment and buoyant investment activity. In contrast, EMEA is more diverse, while Asia-Pacific is more diverse due to emerging market, policy differences.
Analysis of global fintech user growth trends
Data from 2017 to 2028 shows that the number of fintech users worldwide continues to grow. Especially in the field of digital payments, the number of users is expected to grow from 1.3 billion in 2017 to 4.8 billion in 2028. This growth trend reflects not only the popularity of digital payment technology, but also a shift in consumer behavior.
Detailed analysis of various fintech sectors
- Digital Payments: As the fastest-growing segment, the popularity of digital payments is driven by the widespread use of AI smartphones and the rapid development of e-commerce.
- Digital assets: Emerging markets, including cryptocurrencies, have a small user base but are growing rapidly, reflecting interest in new types of financial assets.
- Digital investment: With the development of investment technology, more people are investing through digital platforms, and the number of users is expected to continue to grow.
- Neo Bank: As a banking model without physical branches, it has attracted a large number of users who are looking for convenience and fast service.
Regional differences and market characteristics
There are significant differences in fintech acceptance and user growth across regions. For example, in Asia, digital payment users are growing rapidly due to the popularity of smartphones and the convenience of electronic payments. In Europe and North America, digital investments and new banking models are gaining traction.
Revenue trends in the global fintech industry
Since 2017, the fintech industry has shown an impressive growth trend. Data from this period shows that Fintech has not only changed the way traditional financial services operate, but also created new market opportunities and business models.
Drivers of revenue growth
- Technological innovations, such as the application of blockchain, artificial intelligence and big data, have greatly improved the efficiency and security of financial services.
- Shifts in consumer behavior: Younger generations, in particular, are increasingly demanding faster, more convenient, and more personalized financial services.
- Policy support and investment: The support and substantial investment in fintech from governments around the world have boosted the development of the industry.
Data analysis for revenue growth
From 2017 to 2023, the total revenue of the Fintech industry has grown from $1.59 billion to $79.38 billion, with an extremely high compound annual growth rate. This growth peaked between 2020 and 2021, when the global economy was hit by the pandemic and demand for digital financial services surged.
Conclusions and prospects
According to Statista’s forecast, the total revenue of the global Fintech industry will further grow to $141.18 billion by 2028. This bodes well for Fintech to continue to play an important role in the global economy, particularly in providing innovative financial solutions and driving financial inclusion.
Insight from KSCC
Based on the above analysis, the fintech industry shows a clear growth trend. It provides consumers with more convenient and intelligent financial services, while also driving innovation and competition in financial markets. Despite the challenges of volatile economic market conditions, slowing investment, policy, and regulation changes, it is expected to continue to grow in the coming years. For industry insiders and investors, understanding these trends will help capture market opportunities. Policymakers also need to pay attention to the balance between regulation and innovation in fintech. This wave of trends not only represents technological progress, but also a sign of changes in consumer behavior and market structure, playing an increasingly important role in the global economy.
KSCC is a management consulting company in Taiwan. Our services include corporate in-house training, consulting, and leadership management.For more information about our corporate services, please feel free to visit our website: https://www.kscthinktank.com.tw/custom-training/