What stands behind the buzzword?
Who, what and where is trending?
Today we're taking you on a data journey through the world of financial technology, a.k.a Fintech.
The booming fintech industry is no longer just a buzzword. Many of its promises have now materialized and users/consumers across the globe start to feel the power of the joint energies of Finance and Technology.
To get a better understanding of fintech, its representatives have been divided in three segments and various sub-segments. You can explore these with our interactive chart on the side. Note the upward trend projection across these segments.
As of 2015, Digital Payments account for 90% of the fintech market, Personal Finance for 7% and Business Finance stands at only 3%.
Those segments deemed most promising (Mobile Payments, Personal Finance) are expected to grow up to 15 times their 2015 size by 2021.
In a world of digital payments
In 2015 the Digital Payments segment accounted for 90% of the fintech worldwide market or US $1.8 bn, transferred between millions of users.
This segment incorporates the Digital Commerce big players, including Visa, Mastercard, American Express (check out our story on credit cards), Amazon Payments, Stripe and Google Wallet among others.
Mobile payments are also a factor with ApplePay, AndroidPay, SamsungPay among the leaders in this space.
Peer-to-peer money transfer can count on established solutions like TransferWise, Xoom and more traditional Western Union and MoneyGram.
Help me manage my money
Roboadvisers - solutions which run algorithms on your spending, advising you how to better manage your funds, make up about half of the Personal Finance category transactions.
Expected to grow up to 15 times of their 2015 market size, Robo advisers already take about half the Personal Finance segment. Peer-2-peer lending platforms take the other half.
Fintech for Business is still emerging. However, with a growing number of mobile-first (and/or mobile-only) banks, this segment is here to stay. Interestingly, 81% of this market is currently China where SME fintech funding is booming.
Fintech in your country?
- you'll be surprised
China is already a leading fintech market, boosting solutions like China Rapid Finance. It is expected to overtake the US as the digital payments #1 market in 2017.
Check how your country ranks and the expected growth of transaction values until 2021 with our chart (on the right).
Trending in Fintech town
The Statista Digital Market Outlook 2017 highlights the most prominent trends in Fintech. Here is our top 3 selection: