With increasing investments, rising user adoption and digital acceleration due to the Covid-19 pandemic, the Fintech industry has grown exponentially over the past couple of years.
The Fintech Industry Represents Almost 40% of Banking
In 2010, the Fintech industry represented almost nothing compared to traditional banking – less than 3%. Now, more than 10 years later, the market capitalisation of the top 100 Fintech companies account for almost 40% of the top 100 banks. Over the years, Fintech has become synonymous with the word ‘startup’. However, it is clear that the industry is maturing to the point where its influence and reach is starting to challenge its traditional counterparts.
Fintech Represents 50% of the largest Financial Institutions
If we zoom in and look at only the top 10 financial institutions, in 2010 all of the spots were occupied by traditional banks. However, in only 10 years, we see that the landscape has shifted and Paytech companies such as Visa or Mastercard are dominating the Finance industry. The notion that Fintech comprises just small startups is simply untrue as currently, Fintech accounts for 50% of the top 10 financial institutions.
The Future of Finance
The growth of Fintech does not necessarily imply the decline of banks. The divide between Fintech and traditional finance isn’t as clear and this distinction is likely to get more and more blurry as these worlds converge. At CFTE, our definition of Fintech is: “the impact that technology is having on financial services”. Therefore, banks shouldn’t shy away from the exciting innovations and disruptions happening in the industry currently, but rather embrace them through in-house initiatives, external partnerships or investments in Fintech companies.
To learn more about the landscape of jobs in Fintech and gain an insight on the necessary skills to succeed in this dynamic and ever-evolving industry, download the world’s first Fintech Job Report.