It is predicted by analysts that as companies continue to emerge, investments in fintech firms will also continue to increase. According to Statista, an online statistics firm, investments in fintech companies was calculated to have accrued approximately $3 billion in 2013. It was also predicted that by 2018, fintech investments would expand to $8 billion. These predictions show the growth of fintech; a growth which could mean troubling times ahead for the banking industry.
Based on a research conducted by Ernst and Young (EY), a financial services company, fintech firm target consumers whose ages range from 54 and below. More than 10,000 digitally-active consumers were surveyed. The firm found out that those aged 34 and younger with a high salary are more adaptable to fintech.
Additionally, findings show that the majority of those between the ages of 18 and 34 who earn more than $150,000 are more likely to utilize fintech technology. EY believes that the growth could multiply in the coming year, especially for consumers who are avid internet users. According to Imran Gulamhuseinwala, Ernst and Young’s Global Partner for Financial Services – Strategy, as fintech becomes popular with consumers, traditional financial services firms need to reevaluate their efforts and step up their game in order to maintain their momentum.
In Ireland, a lot of fintech startups have emerged in recent years, and one of the popular ones is Stripe, a company that enables customers to accept payments online. It was founded by Limerick brothers, Patrick and John Collison, in 2010. The firm utilizes fintech’s motto, which is to make life easier for consumers.
Over the next 10 years, Generation Y will be in their peak in terms of earnings and these individuals are totally different from those whom the banks are used to dealing with. This doesn’t look good for the traditional banking industry, especially to the European senior bankers, whose optimism, according to EY, has reached its lowest since 2012.