Financial technology is rapidly transforming the way we manage our finances. Whether it’s mobile banking or instant payments, these innovations are helping to make finance easier and more efficient. Informational platforms like Coyyn are not, as many people assume, digital banks; they provide updates about this shifting fintech landscape. But with fast growth comes a lot of noise, and not all of it is true. Let’s clear the air and break down five common fintech myths.
It’s easy to think that money apps are only the purview of millennials and Gen Z, those people who grew up with smartphones in their hands. They are frequent users, with adoption rates of around 66 percent and 63 percent, respectively, but older generations aren’t far behind. Fintech is becoming the go-to service for Baby Boomers, from insurance to e-commerce. Indeed, people over 50 make up the fastest-growing segment of fintech consumers, with 27% now regular users of fintech services. They are easy to use and can be easily understood by all people, regardless of their age.
There’s also a widely held misconception that fintech innovation is limited to financial centers like New York or London. These are heavy hitters as cities go, but the most exciting growth is happening in emerging markets. African, Indian, and Latin American countries have witnessed the expansion of fintech startups, with over 9,000 emerging in recent years. And where traditional banking is like it is in Africa, Wahala, the possibilities presented by fintech in such unbanked regions for financial inclusion and economic development are massive.
The media often portrays fintech startups as disruptors intent on upending big banks. The truth is far more collaborative. Fintech companies are increasingly viewed as partners, rather than rivals, by many banks today. More than 40% of U.S. bank executives are willing to team up with fintech companies in order to enhance their offerings. Those partnerships enable banks to offer new capabilities, such as digital account opening and fraud management, while providing fintechs with access to a broader customer base. As your pedrovazpaulo business consultant would surely say, these symbiotic relationships are crucial in helping forge the resilient organizations of tomorrow that marry deep tech know-how with established financial trust.
Some believe that fintech is a narrow and limited universe. The numbers, however, say otherwise. Fintech adoption has increased, with between 50% and 75% of people worldwide embracing some form of fintech service. In the US, over 210 million people, approximately 65% of the population, utilize fintech services for various purposes, including payments and investments. Those are the numbers of a sector that is not just well along, but has actually come in from the cold: Fintech is now mainstream finance.
| Statistic | Value | Source |
| Fintech Startups Worldwide | 26,000+ | dashdevs.com |
| Fintech Startups in the Americas | 11,000+ | dashdevs.com |
| Boomers Using Fintech Services | 27% | dashdevs.com |
| Americans Using Fintech Services | 210M+ (65%) | dashdevs.com |
| Fintech Adoption Rate | 50-75% | dashdevs.com |
But with technology seemingly hotwiring the economy on an ever-ratcheting schedule, is fintech just another bubble set to burst? Yet all indicators are that it is a permanent change. Each year, thousands of new fintech startups start all around the world, over 10K in the Americas a year and 9K in EMEA. Governments are increasingly recognizing that potential as well. For example, the UK has been actively building programmes to support and scale its fintech sector. And this continued growth and institutional backing prove that fintech is an irreversible change in the financial sector, not a plot line of Cronkite-era Twilight Zone.
So far, we’ve seen that many popular perceptions of the fintech market are not supported by fact. Fintech, it seems, is a globalizing and unifying force that’s not going anywhere. Distinguishing fintech myths from realities, we can have the correct overview of what these technologies bring. Remaining educated helps us to adopt emerging technologies that are turning finance into a more widely available, efficient system for all.
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5 Common Fintech Myths Debunked with Data