Recently, we published an article on tech startup statistics. The research revealed that 80% of financial institutions are using artificial intelligence in their day-to-day operations. But how big is the fintech industry, really?
During the pandemic, the fintech boom was in direct response to consumers’ desire to handle their finances digitally. However, the industry continues to grow with no signs of slowing down.
Fintech’s impressive expansion has caused traditional financial institutions to take notice. As a result of the numbers, FIs are being pushed to keep up with their tech-based competitors.
Massive company growth
First step to getting an idea of how big the fintech industry is, you have to see how much the most recognizable companies have grown. According to Insider Intelligence, here is how the flagship online-only banks have taken off:
- Robinhood has grown from 501 to over 1,000 employees. Currently, its funding is at $1.2 billion.
- Coinbase has gone from 251 to 500 employees. The company’s total funding is $547.3 million.
- SoFi has had one of the largest uptrends, from 1,001 to 5,000 employees with $2.5 billion invested in the online finance service.
All of the statistics speak for themselves. But how high do specialists expect the industry to go?
How big is the fintech industry’s future?
Equally important to how far the industry has come is how much further it can be taken. In that regard, the outlook is good.
Vantage Market Research anticipates that fintech will have a compound annual growth rate (CAGR) of about 20% for the next six years. They also project the entire industry will be worth $332.5 billion by 2028.
Alongside innovation in the space, the answer to how big the fintech industry is that it’s huge. It makes sense that an industry that deals with consumers’ money will be at the forefront.
As of now, traditional banks are looking to integrate fintech to maintain relevance, and that alone speaks volumes.
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