FinTech is a revolutionary way for making payments

Pavel Prikhodko, Ph.D. Machine Learning

Financial technology (FinTech) relates to the companies that use technology to make financial services more efficient and can be simply described as innovation in financial services. FinTech comes mostly from small startup companies that develop innovative technological solutions in big data, financial management and online payments. In 2014 the United States was the leading FinTech country, with an overall investment value of approximately $3.97 billion. The transaction value in the FinTech market amounted to $523,318 million that year. The digital payments segment accounted for the largest part of this market: over $497 million in 2014. The business finance and consumer finance sectors accounted for $5,773 million and $20,310 million accordingly.

In 2015 the total transaction value totaled about $627,590 million: $559,163 million in digital payments, $10,151 million in business finance and $58,275 million in consumer finance. The industry has already grown to $769,323 million in the current year. Digital payments continue to take the largest share at $635,462 million. The transaction values of business finance and consumer finance (as of writing) amounted to $17,775 million and $116,105 million respectively.

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The forecast suggests that the transaction value will continue to grow in 2017, reaching a total of $950,843 million ($726,057 million in digital payments, $30,954 million in business finance and $193,831 million in consumer finance). The number of potential users in the digital payments sector is expected to reach 243.3 million people in the United States. Online banking is a highly-developed sector, and it will attract more than 161 million users in 2017 according to the forecast. The share of potential users will continue its growth in the future and reach its peak by 2020: 255.8 million users in the digital payments sector and about 178.8 million people in the online banking sector.fintech_yvodoni_0

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About Pavel Prikhodko

Pavel Prikhodko, Ph.D. Machine Learning

Pavel has worked for many years as a researcher and developer on a wide range of applications (varying from mechanics and manufacturing to social data, finance and advertising), building predictive systems and trying to find stories that data can tell.

In his free time, he enjoys being with his family.

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