Why Fintech is Booming?

Fintech investment is predicted to expand at a faster rate in 2022, reaching $310 million. And this is despite a steep drop in investment due to Covid-19 lockdowns and restrictions. Most industries were affected by the pandemic, but not FinTech. During the COVID-19 lockdowns, users were more likely to use Fintech services than traditional banking services. By 2021, three out of every four people on the planet had used Fintech apps to transfer money. Fintech adoption among small and medium-sized businesses (SMEs) is now at 25% and is expected to reach 64% in the near future. By 2023, the Fintech industry is predicted to be worth US$158 million, and by 2030, it will be worth US$325 million. However, other experts believe that the fintech business will grow even faster in the following decade. This article will discuss for key drivers behind FinTech industry’s growth. Technological Revolution The products/services offered by the FinTech industry rely upon technologies like artificial intelligence (AI), machine learning (ML) to automate manual processes. Fintech companies use algorithms and machines instead of humans to perform specific tasks like alerting the compliance team when a suspicious transaction occurs. Fintechs can hire fewer staff while maintaining a high level of productivity, as well as save money on office space. In addition, staffing and local branch savings can be translated into lower service prices, making FinTe...