Simple to use with no red-tape: Fundflow and Wirecard Bank launch online factoring platform for SMEs.
Fintech companies will process around USD 3.301 billion worth of transactions this year, according to Statista. That figure is forecast to grow by approximately 20.5% year on year to around USD 6.962 billion by 2021.
The market is expected to nearly double over the next four years in every region of the world, but growth will be particularly rapid in Asia, where the transaction volume is expected to jump from around USD 1.404 billion this year to approximately USD 3.436 billion in 2021. The leader in the region, with an annual growth rate of 27.4%, is China. It will be responsible for the lion’s share of the Asian FinTech market, accounting for some USD 2.861 billion by 2021. In Europe, Balkan countries such as Slovenia, Serbia and Croatia, Estonia and Latvia in the Baltic as well as Belgium and Sweden are all enjoying growth rates of 20% and above. However, at an average of 14.5%, Europe as a whole has the slowest annual growth of any continent.
«As a specialist, we understand the need to deal with data professionally.»
Dr. Markus Braun | CEO Wirecard AG
Due to this enormous growth, experts also predict steady growth in investment in FinTech companies. In 2014, investment totalled USD 10 billion. It is expected to reach around USD 30 billion by 2017 and USD 46 billion by 2020.
Based on studies conducted by Capgemini in 2016, customer acceptance of FinTech solutions is highest in Latin America, where 77.4% of people have at least one connection to a FinTech company. The same is true for 68.9% of people in Central Europe, 63.6% of people in Africa and the Middle East, and 60.8% of people in Western Europe. North America and the Asia Pacific region still have room for improvement, where a total of 59.1% and 58.9% of people respectively have at least one connection to a FinTech company.
Customers primarily use FinTech products because they are easy to use and the service is fast, resulting in an overall positive experience.