According to GlobeNewsWire, the fintech industry is expected to reach a value of $305 billion by 2025.Also the annual estimated growth is projected to reach 25%.

IT industry innovations were the driving force behind corporate expansion. Technology has helped businesses stay competitive in a rapidly changing environment instead of becoming outdated. Fintech companies have soared in popularity, amassing a steady stream of new holdings every day. They now offer simpler services that provide access to a wide range of value-added services and faster solutions.

These companies are also changing the structure of employment in the financial industry. According to Aegean Equity's analysis, fintech can have two major impacts on the financial industry:

Job losses

Many fear that fintech will lead to significant job losses in the financial sector. These companies provide innovative services that change the way individuals work with financial institutions. Crowdfunding, mobile banking, online banking applications and technologies eliminate the need for customers to physically visit bank sites and interact with financial advisors.

Structure of the financial industry

Companies in the industry are challenging large financial institutions to reconsider:

• organizational structures
• their functions
• the provision of products and services to the general public

Companies will be driven to operate more efficiently. Workers and financial professionals will need to broaden their skill set in order to find work in the sector.

According to the most recent Report of the PwC Global Fintech, the question is no longer whether fintech will change financial services, but rather which companies will implement it most effectively and emerge as leaders.

According to a recent survey detailing the rapid digitization of financial services, nearly nine out of ten Americans now use some form of fintech app to manage their financial affairs. It has now come to be considered a mainstream, fueled in part by the coronavirus pandemic. The pandemic has prompted customers to use fintech for banking, payments and investments. The percentage of Americans increased to 88% in 2021, up from 58% in the previous study. According to the survey, it is currently used by more Americans than video-streaming subscriptions (78%) and social media (72%) combined.

The future of Fintech

Over the next four years, the global fintech market is expected to grow with CAGR (compound annual growth rate) of around 20%. According to GlobeNewswire, the market value is estimated to reach $305 billion by 2025. Moreover, this year was a landmark moment for the industry, with theline between fintech and traditional financial services becoming more and more blurry. Due to competition from fintechs and the coronavirus pandemic, almost every existing financial institution is now behaving differently and participating in innovation operations. As a result, active operators invest, acquire and cooperate with fintech competitors.

Fintech appeared in the twenty-first century to describe the technology used in the back-end systems of established financial organizations. However, since then there has been a transition to more consumer-oriented services and, as a result, he has been given a corresponding definition. Today it spans various sectors and businesses, such as education, retail banking, non-profit fundraising and investment management.