The Growth of Fintech Startups
The growing wave of fintech startups is sweeping across the world with incredible speed. From the Americas, to Africa, to Asia, new and innovative companies seem to be emerging almost by the day—and investors are taking notice.
Infographic: The Growth of Fintech Startups
Increasing Investment in Fintech
According to Media Radar, venture capital investors poured $44.4 billion into young fintech companies in 2020 compared to just $1.1 billion a decade earlier. This represents a whopping 3936% increase from venture capitalists—further demonstrating the incredible rise of fintech organizations in recent years. But according to some experts, this investment is only just beginning.
Sustaining Long-Term Growth
In an article published in The New York Times, investor Mark Goldberg believes that current investment in the fintech industry is only scratching the surface of its potential. Over the next 20 years, Goldberg anticipates up to $1 trillion of market value being poured into new fintech companies—and these investments will likely be funded by traditional financial institutions.
Support from Big Banks
As global technology continues its rapid evolution, banks and financial services companies will need to keep pace. From enhancing their overall customer experience to innovating with new and improved products, this sector must stay atop the latest tech trends to survive among fierce competition. And as industry giants like Goldman Sachs, Citibank, and JPMorgan & Chase continue to ramp up their fintech investments, look for other institutions to follow suit.
While it remains to be seen just how much growth and expansion will come within the fintech industry, the global buzz surrounding these emerging companies is incredibly encouraging. As more entrepreneurs with innovative ideas enter the fintech market, the results could change the world of finance as we know it. One thing has become increasingly clear: the future of fintech is bright!
Looking for more eye-popping statistics on the growth of fintech startups? Check out Viaduct’s latest infographic above to learn about the expected expansion of this growing industry!