The Number Of Fintech Start-ups Nearly Doubled And Hit Over 21,700 Globally
Recent years have witnessed a rapid growth of the entire fintech industry, forced by the increasing use of mobile apps for digital payments and the growing interest in financial technology solutions. The strong rising trend of the global fintech market was followed by the surge in the number of Fintech startups all over the world.
According to data gathered by Finanso.se, the number of Fintech startups nearly doubled in the last year, reaching more than 21,700 companies globally.
Over 40% of Fintech Startups Come from the North American Market
In 2018, there were over 12.100 Fintech startups in the world, revealed the Statista data. With nearly 5.700 startups that year, North America represented the leading region globally. Europe, the Middle East, and Africa followed with almost 3.600 companies. More than 2.800 fintech startups were from Asia and the Pacific region the same year.
By the end of 2019, the number of Fintech startups globally slightly rose to over 12.200, and again the largest share of companies was from North America. However, over the next twelve months, the fintech market has witnessed a massive jump in the number of startups, growing by nearly 80%.
The statistics show North America still represents the leading region globally. Most of the U.S. banks, corporate venture capital groups, and other investors are heavily investing in fintech startups due to the increasing demand for fintech solutions among users. Over the last twelve months, the number of American fintech startups increased by 50%, reaching more than 8,700 in 2020.
The Rise of the European Fintech Startups
Nevertheless, statistics show Europe, the Middle East, and Africa have witnessed the most significant growth in the number of startups, rising by more than 105% and counting nearly 7,400 companies this year. Asia and the Pacific region followed with almost 4,800 startups in 2020.
The overall European fintech market is expected to maintain the increasing trend in the following years, growing by more than 11% year-on-year by 2025. This upward trend is driven by the favorable and stable regulatory environment created by the European payment directive PSD2, which requires banks to be more open with payment service providers.
Moreover, the European countries have witnessed a large amount of venture capital investment in the fintech companies in the last few years. Statistics show that in 2017, the investments reached $12.3bn value. Over the next twelve months, this figure grew by more than 3.5 times, reaching $43.3bn worth. In 2019, total investments in the European fintech companies jumped over $58bn. The most significant part of that amount or more than 75% was invested during the third quarter of the last year.