According to Big Four consulting firm KPMG, FinTech companies around the world bagged more than $135.7 billion in investment in the year 2019 . In the same year, the global FinTech industry nearly reached $111,240.5 million and by 2023, the industry is expected to touch $158,014.3 million while growing at a CAGR of 9.2% . The financial technology industry is clearly on a boom. Despite the pandemic taking over the world, this sector has continued to show growth and set the tone for FinTech trends 2021. Global COVID-19 FinTech Market Rapid Assessment Study by The World Economic Forum gathered empirical data from 1,385 FinTech firms operating under 169 jurisdictions. The goal of the study was to see how these companies grew on the onset of the pandemic. The study found that the FinTech firms, on average, saw a growth of 13% in 2020 during the pandemic. In 2019, the growth of the same companies was at 11% on average .
The landscape of the FinTech industry is changing at the speed of light, especially since the pandemic. The acceptance and adaptation of FinTech solutions has increased rapidly during these testing times. A study conducted by Plaid that surveyed 2,008 US adults found that 73% of the Americans view FinTechs as a part of the new normal. Additionally, 67% of those Americans plan to continue using these solutions even after the pandemic ends.
Advancements and transformations in the FinTech industry impacts everything related to money, banking and payments. The FinTech revolution in the world is gaining enormous traction with each passing day. 2021 will be all about this industry taking further steps towards developments in the banking and payments sector. In this blog, we will talk about 6 trends in FinTech that you should watch for in the year 2021. But first, let us reflect on what this technology is all about.
What is FinTech?
First things first, FinTech, which is short for Financial Technology, is not a name of a brand or a particular software. It is a collective terminology used for technology trends in the financial sector. Fintech is the integration of technology with finance to produce creative and efficient solutions for consumers or businesses.
FinTech solutions make banking smarter and quicker. Financial technology is supported by a range of cutting-edge technologies such as artificial intelligence, blockchain, biometrics and many more. These technologies can be implemented in a FinTech solution individually or in combination.
Adoption of FinTech technologies in the form of apps, websites or solutions has happened at a massive rate in these testing times and from this point on, it will only increase. The industry is continuously coming up with groundbreaking and useful technology for making finance convenient, quick and secure. While there are many future trends in FinTech that are expected to boom in the upcoming years, here are 6 trends that we think will rule in 2021.
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