Fintech is the future - Fintech Sector & Fintech Marketing Statistics for 2022 and Beyond
In case you’d forgotten how things were before the pandemic began, the financial industry had begun to play host to both a childlike excitement as well as maintaining a cautious eye at the prospect of further disruption resulting from fintech companies providing global consumers with solid alternatives to traditional banking and investment options. The constantly growing, tech savvy fintech companies readily offer services that traditional providers in finance and banking are themselves only beginning to get to grips with.
Fintech (financial technology) is both defined by and refers to the innovative and disruptive digital technology solutions that aim to optimise the operation and the business/consumer uptake of digital financial services and online banking, all via computers and mobile platforms such as phones and tablets. Different types of fintech services include:
- P2P lending
- Credit scoring
- Insurance underwriting
- Wealth, tech & asset management
- Digital wallets
State-of-the-art digital technology solutions including artificial intelligence as well as potential game changers for the finance/banking sectors such as Blockchain offer genuine alternatives to traditional banking and financial institutions, leading the way towards truly innovative and more efficient and effective ways of investing and transacting in the digital age. Many traditional aspects of finance, investment and banking such as banking/personal loans, insurance, forms of electronic payment and wealth management are all currently undergoing this much needed digital
transformation. About time, too.
(SOURCE - FT Partner Content, 2020)
Undoubtedly a kick in the teeth for many long standing providers of finance and banking services, statistics from over the last five years have increasingly shown that traditional banking and finance is being overtaken by companies that have been quicker to make use of and provide the public with the latest digital and technological innovations:
- The global fintech market is projected to move from its $11.8 billion mark in 2018 to reach a whopping $305 billion by 2023 (Market and Research, 2021), as the battle for dominance between up and coming fintech companies and the established financial/banking institutions heats up to boiling point. Here at yaser.uk, we’re all for fintech domination.
- The Fintech market is growing at what can only be described as a mouthwatering rate. During the first 9 months of 2021, Fintechs secured almost double the amount of funding as over the whole of 2020, a record $94.7billion, with UK based Fintechs such as Monzo and Revolut vastly increasing their respective funding pools and market valuations (Fintech Times, 2021). Revolut itself grew from 150,000 customers in 2017 to over 8 million customers in 2020 (latana.com, 2021). This is all music to our ears.
- With the considerable influence of Big Tech as well as the increasing acceptance and further adoption of decentralised finance that visibly occured over the course of 2020 and 2021, Fintech now has the means to start taking an even greater market share from the grips of the traditional banking sector. These facts have been echoed by the sentiments of those within traditional banking, with 88% of established financial institutions stating that stand alone Fintech companies both threaten their existing business model and will all but certainly capture a sizeable piece of the banking sector (PWC, 2021), a sector that has remained largely unscathed in the last half century.
- Increasing the adoption of decentralised finance for a variety of economic and perhaps political reasons, fintech investments have been expanding beyond the established major markets right across Asia, Africa, South America, and the MIddle East, with 39% of deals in the industry made from outside of the traditional hubs such as the US, the UK, and China (CB Insights, 2021). Most notably, the Asia Pacific region is expected to account for more than 50% of the global fintech market share by 2024. (Deloitte, KPMG, 2021)
- At a compounding annual growth rate of 10-12%, E-commerce is one of the biggest growth drivers of fintech (IndustryARC, 2021). To put that into perspective, a single e-commerce transaction contains an array of fintech operations (i.e funds transfer, data collection, fraud detection), many of which have dedicated fintech companies or startups working to improve them. In this way, any growth in e-commerce goes hand-in-hand with that of fintech. Viva the world wide web, we say.
- Partially mirroring the ever growing adoption rates of the latest digital banking tech by consumers and businesses, per-share values of the Global X Fintech ETF almost quadrupled over a period of five years, up from $15 in 2016 to $47 in 2021 (MarketWatch, 2021). Definitely worth keeping an eye on.
- Artificial intelligence will save the insurance industry nearly $1.3 billion by 2023 as computers can now automate many functions that reduce the time and money required for insurers to settle claims. Also showing the visible impact of new technologies, the use of robo-advisors/chatbots will save banks $7.3 billion by 2023, marking a 3,400% increase when compared to the figure of $209 million just two years ago in 2019 (Juniper Research, 2021). Furthermore, AI is expected to power 95% of all customer interactions in the next decade. (Gartner, 2021). Who needs people when you have robots?
- PayPal, the very first fintech and still the largest global mobile payment platform in the world, had a net payment volume that amounted to roughly $311 billion, representing a 41% year-on-year growth in Q2 of 2021 (Statista, 2021). If that’s not growth, we really don’t know what growth is.
Consumers and businesses deservedly now expect a completely seamless experience when handling their funds online. As such, finance and banking providers must now offer this level of service if they want to stay relevant, which is a driving reason behind why collaborations between established banks/financial institutions and fintech startups are becoming the norm.
Although differences in workplace culture must be overcome, it is now far from unusual for a fintech business with a business-to-consumer model to also offer or even totally adopt a business-to-business approach, allowing them to supply their disruptive technology to larger, more successful companies and access huge, global client pools. To be fair fintechs deserve it, as it is clear the banking sector has been slacking for over a decade, if not for the last five decades.
More so than ever, and perhaps only because their bottom line has been somewhat dented, age-old established companies within finance and banking now realise the full potential and increasing necessity of adapting to and adopting new technology, as well as the multitude of benefits it potentially provides to consumers, businesses and the financial/banking service providers themselves.
Fintech marketing can be defined as the array of marketing techniques that have been specifically catered for promoting financial technology companies and catering to the unique needs of financial customers, whether they are private individuals or multinational corporations. Implementing the appropriate fintech marketing techniques is becoming more and more of a challenge in a market that is becoming rapidly saturated, with customers now demanding more free tools and educational resources as part of a standard service.
However, with there being a visible correlation between the growth in E-commerce and fintech, you can be sure that this growth can also be somewhat extended and applied to fintech marketing itself. Here’s a curated selection of insightful statistics to help show you why we think this is the case at yaser.uk :
- A veritable world of marketing opportunities still exist for fintech, with only 1.3 billion mobile phone users making use of mobile payment systems (businessofapps.com, 2021) out of the near 6.4 billion mobile phone users that are active across the globe (bankmycell.com, 2021). By 2023, there will be around 29.3 billion networked devices (Cisco, 2020). Clearly, there’s potentially plenty of fintech marketing that still needs to be done.
- Across the globe, between Q1 2019 and Q1 2021, 4.7 billion finance apps were downloaded and installed, although the average number of app downloads in developing markets was 70% higher than the average in developed markets (businesswire.com, 2021). This further shows that fintech marketing still has much work to do within developed markets, let alone in developing markets.
- Implementing a customised content marketing strategy can have a hugely positive impact on specific marketing goals as over 60% of consumers prefer to have their content customised to their unique requirements. (postgrid.com, 2021) This is the case not only for B2C customers, but now also for B2B customers. Better get cracking then.
- A recent study highlighted the fact that 45% of Millennials desire financial products and services that help them to manage their finances, but 37% of them stated that they could not find the relevant resources online to educate themselves on key financial topics. (digitalauthority.me, 2021). Another worthy mission for fintech marketing right here.
- Consumers can retain up to 95% more information from watching a video rather than just reading text, with the majority of these consumers often requesting short, concise and informative videos from the brands that they are patrons of (digitalauthority.me, 2021). This makes it sound as if these brands aren’t doing their marketing the right way, or perhaps good video editors are in short supply…
- 80% of people are more likely to do business with a company that offers personalised experiences, while 89% of people more likely to do business with a financial institution that offers personalised experiences. (Epsilon, 2020) To personalise or not to personalise, that is not the question.
- 80% of B2B buyers favour getting their information from educational blogs, articles and other types of content rather than from advertisements (B2B PR Sense, 2021) Sounds like it's time to hire that top level content creator that you’ve been thinking about…
- More so than ever, it appears the customer is king. Now regarded as a vital aspect of fintech marketing, improving and enhancing the customer experience can raise KPIs by over 80%, whilst a good user interface can increase a websites’ conversion rate by up to 200% (truelist.co, 2021). Well, if Bezos invested 100 times more capital into the user experience than he did on advertising in Amazon’s first year, it must mean something, right?
- Currently there are 96 ‘unicorn’ fintech start-ups around the world, collectively valued at $404billion (CB Insights, 2021). Startups, perhaps more so than established companies, always have a need to get their marketing just right…
Through this tidy compilation of different statistics regarding the fintech sector and fintech marketing, it is clear to see that fintech is here to stay and, dare we say it, here forever. This will perhaps be much to the displeasure of traditional banking and financial institutions, especially if these formerly dominant providers of banking and financial services don’t get themselves up to speed quick enough. Either way, it looks like fintech and the end consumers are set to keep winning, even if it is at the expense and to the detriment of traditional banking and finance.
Expert in SEO and with over 15+ years of experience in the Fintech industry, I share my tips and insights on how to market your Fintech successfully and how to do SEO right.