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42% of Americans Use Fintech — Do You?

fintech technology

In college, my roommate and I would split our shared expenses at the end of each month.

And each month, our conversation would end with: “Remind me to go to the ATM tomorrow.”

That was until a friend of ours asked: “ATM? Why don’t you guys just use Venmo?”

It was the first fintech app I downloaded, but hardly the last.

In fact, there’s a growing number of apps in a folder on my phone titled “Finances.”

In the last year, this sector has become too big to ignore.

Just take a look at some of the top fintech deals in the last year:

But these aren’t even the most impressive deals in the space.

Fintech Platforms Proved Their Worth During the Pandemic

Traditional banks are finally joining fintechs instead of fighting them.

And that’s for a good reason. Banking executives know that if they don’t join the fintech revolution, they could soon be replaced entirely.

JPMorgan CEO Jamie Dimon, in a call to his management team, said: “We should be scared s—less about that. […] We’ve just got to get quicker, better, faster.”

But at this point, they’re playing catch-up. And these fintech offerings only make up a small part of their business.

The pandemic was the last nail in the coffin for in-person banking services. Why risk exposure to COVID-19 when you can deposit a check, move funds and more, all from an app?

And fintech is making it even easier to shop online.

Take the Target app, for instance. You can shop, schedule delivery, and pay in one easy-to-use application.

According to a McKinsey survey, these factors led to the increased usage of fintech platforms.

This ultimately resulted in fintechs becoming mainstream. Now, 42% of Americans use at least one platform.

Fintechs Are Growing Rapidly

This trend led fintechs to engage in their own acquisitions.

These are the most impressive deals:

It’s better to bet on these fintechs than traditional banks. After all, as Jamie Dimon mentioned, big banks should be “scared s—less” of these hot new companies.

And if you’re interested in a way to play this trend, you should check out Ian King’s Strategic Fortunes service.

He recommended a fintech titan that’s disrupting the banking sector. It’s up 250% over 30 months — with the potential for more upside ahead.

Regards,

Andrew Prince

Research Analyst, Strategic Fortunes

 

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