Financial Technology, is growing substantially worldwide. With investments into FinTech developing each year, FinTech is becoming more and more prominent. It reminds me the early days of cloud computing, where investors are ‘betting’ on cloud infrastructure companies and SaaS.
But how big are the investments into FinTech, actually? Well, how about this figure to get you started: There are more than 1,300 FinTech companies – and counting.
There’s got to be something going on – and if you assume it to be that way, you’re correct.
Stellar growth in FinTech investments
Investments into FinTech rises each year worldwide. In 2013, it was recorded that £4 billion had been invested into FinTech, in 2014 over £12 billion was invested, in 2015 there was a huge increase with people investing over a massive £22 billion, and finally, in 2016 a whopping £30 billion was invested. There’s no sign of slowing down.
Please see the infographic from FinTech Compliance for more information on exactly how FinTech has improved in the last few years.
FinTech’s global trends
FinTech is worldwide, the areas that are most famous for the amount they have made from Financial Technology, are California and New York, which are obviously both American but have also brought in over a combined £5 billion revenue. The United Kingdom is also having a massive revenue sitting at £524 million, other countries that are very known for high revenue from FinTech include Germany, Singapore, Hong Kong and Australia.
Other countries are definitely catching up, and you’ll see the gap is closing – like what I mentioned earlier in this article, this is just like the cloud computing industry.
Attractive figures
If you ever thought about investing into FinTech, the infographic can pretty much explain what you’ll be getting. Here are some numbers behind the investment that can give you more reasons why FinTech should be the sector where you invest your money in:
Massive increase in revenue and investments
Firstly there has been a 120% increase in revenue across Europe, there has also been a 201% increase of investments over just one year, and finally, there has been a massive 67% increase in investment in the first quarter of each year.
Strong job creations
Now onto the employment sector with FinTech, the two leading areas with employment within FinTech is firstly California who have employed over 74,000 people and then followed by the United Kingdom who have employed over 61,000, these two are both the first and second highest employers for FinTech in the world.
Takeaway
When jobs are created in the tens of thousands and investments are made, especially by deep-pocketed investors, you should already realize by now that FinTech is not a fad. It’s a rapidly growing sector that will eventually become mainstream.
As always, consult with your trusted investment advisor on the possibility to invest in FinTech before you decide on anything.