The Rise of Fintech
The start of Fintech, which can be simply defined as the usage of technology to improve financial services, can be traced back to the 20th century with the installation of the first ATM by Barclay’s in 1967. However, with the repercussions of the 2008 Financial Crisis and recent technological advancements such as Artificial Intelligence, Machine Learning, Big Data or APIs, Fintech as an industry has skyrocketed in growth and mainstream attention only recently. Over the past 10 years, more than $200 billion have been invested in Fintech start-ups and companies globally.
Private vs Public Fintech Companies
With the growth of the industry, we’ve seen more and more companies go public in recent years. As of November 2021, 10% of Fintech Unicorns have been listed, whilst 90% are private companies funded by Private Equity and Venture Capital. The majority of public Fintech companies are based in North America, specifically the United States. In terms of sectors, the majority of public Fintechs are in the Payments space, followed by Infrastructure.
These companies play a significant role by not only setting the direction in which the industry is heading, but also in the job market. Publicly listed companies like Visa, Adyen or Paypal account for more than 45% of the jobs in Fintech.
Despite its tremendous growth over the past decade, it could be said Fintech has yet to reach its maturity as it mostly comprises private companies and startups. Over the upcoming years, it is safe to say that the industry will keep growing, investments will continue to rise and the number of startups turning public will increase as well. With more companies turning public, we can also expect an increase in Fintech job opportunities as well.
To explore all of the listed and private Fintech Unicorns (companies whose valuation has exceeded $1 billion), download the comprehensive list here.
