Goldman Sachs values the fintech industry at US$4.7 trillion.
This value has increased recently because of the large influx of VC and strategic capital in the last two years. In 2013, there were $4.05 billion of investments into FinTech. This increased over three times to $13.8 billion in 2015.
The global adoption rate for FinTech, defined as the “number of users as a percentage of the digitally active population” is around 15.5%. The top three cities for this adoption rate are New York, at 33.1%, Hong Kong, at 29.1%, and London, at 25.1%.
Asia, investing $4.5 billion over 130 deals ($20.4 million/deal), has invested the greatest amount as a continent, followed by America, at $20.4 million/deal, and Europe, at $12 million/deal. This increase in funding is also seen in deal volume, which has increased at 11.4% from last year, as the number of FinTech companies that are VC-backed is increasing at 33% each year. This has led to $14.7 billion of FinTech raises in the first half of 2016.
According to Ernst & Young, individuals use FinTech services for three primary reasons, convenience in the account setup procedures, more attractive rates and fees, and better quality in terms of service and products. The top reason cited for those who do not use FinTech is lack of awareness.
Possibly the most important number is the 4% increase, to $196.7 billion, in aggregate spending in FinTech startups by global financial institutions.
More than 75% of this spending is on maintenance of existing technologies, not necessarily new technologies, showing that existing traditional banking institutions are, figuratively and literally, buying into FinTech.