Fintech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. Financial technology has been used to automate insurance, trading, banking services, and risk management.
The start of FinTech dates back to 1866 when the first transatlantic cable was successfully laid, providing fundamental infrastructure for the period of intense financial globalization from 1866 to 1913. The first electronic fund transfer system operating with the help of the telegraph and Morse code was done in 1918. Later on, in the ’50s the public was introduced with credit cards, thanks to Diners club and later American Express. The switch from analog to digital brings us the first ATM machine by Barclays in 1967 which marks the beginning of modern FinTech. In 2008, due to the financial crisis, people started distrusting traditional banking services and fresh players started emerging. In 2009 the Bitcoin appeared followed by other cryptocurrencies. Computers are now commonly used, and smartphones became the primary means to access the web and therefore different financial services. This is increased even higher with the introduction of Google wallet and later Apple pay. The majority of Fintech Market Share belongs to the Insurance sector. You can find Fintech Market Size, Fintech Market Share, and other trends and statistics below and you can get help with additional Fintech industry market research here.
FinTech growth is driven by the increase in the use of mobile banking applications for digital payments or other banking applications, the rapid adoption of cutting edge technologies across the financial services industry, such as digital payments and money transfers, financial software and automation, and alternative lending and funding platforms. The major growth drivers of the Fintech industry are the increase in the use of mobile applications for digital payments, digitalization of financial services, the rising number of payment options at retailers, tapping into the emerging markets’ middle class which means digital-only strategies with highly scalable platforms that have most of their costs are in the initial software development and infrastructure buildout and later little incremental cost per customer, the expansion of FinTech beyond traditional financial services such as payments firms offering marketing, operations, and human resources software.
Fintech is a Developing market composed of many industries. Insurance market share was 56% of the Fintech market in 2017. The number of startups providing support in insurance customer acquisition (such as online platforms for insurance sales, and lead generators) are running at the same level as those in insurance operations. Personal insurance startups are dominating the Industry with more than double the number of new ventures devoted to commercial lines. Banking & Capital Markets market share was 25% of the Fintech market in 2017. In banking and capital markets, the total number of startups began its decline in 2013, and in the deposits and lending space that number actually soared between 2013 and 2014. Real Estate market share was 15% of the Fintech market in 2017. In real estate, the number of startups fell after 2014, but fintechs in leasing and purchase-sale transactions jumped significantly in 2015 though the numbers in the sector overall were down. Investment Management market share was 5% of the Fintech market in 2017. Real estate startups focusing on property development and management dwarf the number of fintechs launched to target financing and investing or leasing and purchase-sale transactions.
T4's research team can help you learn more about the Fintech industry with market analysis, competitive analysis, commercial Due Diligence, and other market research needs. This includes deeper analysis on competitors in the Fintech market, including: Ant Financial, Qudian, SoFi, Avant, Klarna, Adyen, Xero, Lufax, ZhongAn, Oscar, Tala, Pitchbook; research into related topics such as Alternative Financing, Alternative Lending, P2P Payments, Digital Payments, Mobile Payments, (UPI) Unified Payments Interface, Financial Services Software, InsurTech, Personal Finance, Banking & Insurance, Cryptocurrency, Stock Exchange; or additional support in the Technology, Banking & Insurance, Investment, Real Estate Sector or other Sectors. Find more information about T4's services here.Schedule a Demo