What industry does fintech fall under? (2024)

What industry does fintech fall under?

Financial technology (better known as fintech) is used to describe new technology that seeks to improve and automate the delivery and use of financial services. ​​​At its core, fintech is utilized to help companies, business owners, and consumers better manage their financial operations, processes, and lives.

The fintech industry includes everything from payment processing solutions to mobile banking apps, all of which are designed to improve the financial lives of consumers and automate the financial operations of businesses.

Fintech is a portmanteau of the words “financial” and “technology”. It refers to any app, software, or technology that allows people or businesses to digitally access, manage, or gain insights into their finances or make financial transactions.

FinTech, on the other hand, broadly refers to any technology aimed at facilitating and streamlining digital transactions. Fintech has been adopted by countless businesses to improve their financial services and, in many cases, make their products more accessible.

The word “fintech” is simply a combination of the words “financial” and “technology”. It describes the use of technology to deliver financial services and products to consumers. This could be in the areas of banking, insurance, investing – anything that relates to finance.

While fintech penetration in emerging markets is already the highest in the world, its growth potential is underscored by a few trends. Many of these economies lack access to traditional banking services and have a high share of underbanked population.

Why start a career in fintech? One of the most attractive features of the fintech sector involves its current market momentum. Recent data indicates that the industry should enjoy a compound annual growth rate (CAGR) of 26.2% between 2022 and 2030, making it perhaps the fastest growing sector within finance.

In other words, the fintech companies are considered frontline competitors of traditional banks. The difference between the two is that a fintech bank uses new technologies while traditional banks still resort to archaic and time-consuming procedures and means.

Scope. The primary difference between finance and fintech lies in their scope. While finance encompasses the entire spectrum of financial activities and institutions, fintech specifically focuses on the application of technology to revolutionize financial services.

Is tech an industry or sector?

The technology sector is comprised of businesses that sell goods and services in electronics, software, computers, artificial intelligence, and other industries related to information technology (IT).

The global fintech market was valued at USD 294.74 billion in 2023. The market is projected to be worth USD 340.10 billion in 2024 and reach USD 1,152.06 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period (2024-2032).

Fintech vs Traditional Banking: Comparison Table. Banks are the institutes that are licensed to carry out financial services and focus on client security. Fintech firms improve and automate the delivery of financial services by focusing on customer requirements.

The app has been around since 2012 and was eventually acquired by FinTech giant Paypal. Venmo has made paying back friends, splitting checks, and sending money to family simple in a world where people seldom use cash anymore. There are several different ways Venmo makes money from its app and services.

Most notably, intelligent automation and robotic process automation will be at the forefront of fintech market trends, increasing efficiency, accuracy, and quality of financial operations.

The rise of embedded finance

As consumers look for more personal and convenient financial services, embedded finance rises as the top fintech trend to watch in 2024. Between 2023 and 2028, the global embedded finance market is expected to grow annually by an incredible 35.5%.

A Fintech Unicorn is a terminology used to describe a privately-held startup company in the financial technology industry that has a valuation of over $1 billion. This esteemed status of being a unicorn signifies exceptional growth and potential within the Fintech sector.

Why does fintech pay so much?

The reason for higher fintech salaries is pretty clear: these cutting-edge firms must not only compete for talent with the traditional finance sector, but also deep-pocketed tech giants such as Google and Microsoft that have no compunctions about paying whatever it takes to secure the talent they need.

Fintech companies are making money by using technology to offer financial services to consumers and businesses. They are able to offer these services at a lower cost than traditional financial institutions and are also able to reach a wider audience through the use of technology.

The average fintech salary in the United Kingdom is £60,000 per year or £30.77 per hour. Entry level positions start at £45,000 per year while most experienced workers make up to £80,738 per year.

As a leading global digital payment leader for 20 years, PayPal (NASDAQ:PYPL) stands out among the rest. PYPL stock has gained international recognition as a top fintech stock to own for the long term.