10 Fintech Facts You Probably Didn't Know

What is fintech?Fintech is the term given to financial service firms whose product or service is built upon technology, often resulting in highly innovative, disruptive services. “Fintech” as a term is a compound of “finance” and “technology”. It is what drives the alternative finance sector. Fintech companies include Lending Club, Funding Circle, MarketInvoice and Kantox.Fintech is here to stay. Why?Put simply, fintech is changing finance as we know it and is already impacting how increasing numbers of individuals and businesses alike conduct their financial matters.Are banks worried? They certainly are. But their worry does not come from the market share fintechs have currently, as it is miniscule.The real worry comes from what fintechs could do to banks’ market share in the future. The fear is that mid- to long-term, ironically, banks could lose the banking sector. Or a significant portion of it at the very least. Fintechs' success comes from the fact that finance is an industry ripe for innovation; a sector dominated by banks and other established players.We look at ten crucial facts about the fast-growing fintech sector:1. Since 2008 global investment in the burgeoning fintech sector has tripled, from $928 million to $2.97 billion.2. There are over 3,000 start-ups in the fintech space, covering a wide range of financial services, including capital loans, international money transfers, investment management and crowdfunding.3. 35% of banking revenues are estimated to be at risk by 2020 because of disruption from fintechs.4. 71% of millenials (people born between 1980 and 2000) prefer to go to the dentist than listen to banks. Music to the ears of fintechs.

5. Global fintech investment is forecast to reach up to $8 billion by 2018.6. Silicon Valley is the global fintech capital, with one third of fintech deals taking place there in 2013.7. London is the fintech capital of Europe, with 53% of European fintech deals taking place in the UK capital.8. Ireland is used by many fintech start-ups as a launchpad because of its low corporation tax and proximity to London.9. Since 2008 UK fintech investment has grown by an annualised rate averaging a remarkable 51%.10. Lending Club, filing for an IPO, can be considered the leading fintech company globally.How can you be ready for the changes fintech is bringing to finance? Learn with our free-to-download guide: