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FinTech Report 2020

Statista Digital Market Outlook – Market Report
May 2020
The market outlook presents up-to-date figures and
an in-depth analysis of the FinTech market
Introduction
FinTech, a combination of financial services and technology, has been

rapidly evolving in the last decade and has to some extent completely
reinvented the financial services landscape and the way people spend,
invest and lend money. With more than 40% of the global adult
population using the internet to pay bills or buy something online,
FinTech is not an emerging market anymore, but an established industry
with huge potential yet to be unlocked.
With this report we provide a comprehensive overview of the state of

the FinTech market as it is today as well as a prognosis with detailed
information on 8 different market segments in the areas of Digital
Payments, Alternative Financing, Alternative Lending and Personal
Finance. Besides all relevant market figures like total and average
transaction values, and user numbers for the years from 2017 to 2024,
we furthermore give detailed insights into current trends, key players
and important background information on the FinTech market.
Sofia Zavialova
In comparison to the prior FinTech Outlook Report we have also added
Analyst Digital Markets
new content. We now show user demographics, selected key market
drivers as well as new company profiles and deep dive topics. [email protected]
Furthermore, besides our known focus regions, the U.S., China and
Europe, we now also provide detailed figures on the top 5 EU countries
to enable more insights into the market. Sofia Zavialova graduated from Turku School of Economics at
University of Turku (Finland) with a focus on strategy and international
business. She gained a vast experience in market research and
analysis from her work in several Research institutes in Finland and
Denmark, working as a Project Researcher. At Statista she works on
projects related to the digital economy.
2 Source: Statista Digital Market Outlook 2020

Agenda
01 Market Outlook 02 Segments 03 Appendix

▪ Overview ▪ Overview ▪ User demographics
▪ Estimated market development ▪ Market sizes ▪ Market structure
▪ Coronavirus impact ▪ User numbers ▪ Product overview
▪ Key player landscape ▪ Average transaction value per
user
▪ Core competencies of FinTechs
and banks ▪ Company profiles
▪ Trend analysis ▪ Deep dives
▪ Key market indicators
3
The FinTech market is divided into four segments and
8 sub-segments in this report
Overview: segments
Digital Payments Personal Finance Alternative Lending Alternative Financing
Digital Commerce Robo-Advisors Crowdlending Crowdfunding

Mobile POS Payments Digital Remittances Marketplace Lending Crowdinvesting

China is the largest global FinTech market across
Digital Payments and Alternative Lending in 2019
Overview: summary and key takeaways
Summary Key takeaways

The rising number of internet and smartphone users as well as the ▪ Digital Payments
aftermath of the financial crises of the early 21st century have led to the − The segment has a global transaction value of US$3,858.6 billion in
digitization of many financial products. FinTech, a combination of 2019 and is the largest segment within FinTech
financial services and technology, has been rapidly evolving in the last
decade. We have identified four major segments where innovative digital − China is now and will stay by far the leading country in 2024 with
products and services challenge established players in the financial US$3,529.5 billion in TAV1
services field: Customer focus, digital touchpoints, higher levels of
▪ Personal Finance
security and convenience make up the core elements of the growing
FinTech movement. − The segment has a global market size of US$906.8 billion in 2019
and a CAGR2 of about 23.8% (2019-24)
China is currently the biggest FinTech market in the world given its
leadership position in Digital Payments and Alternative Lending, − Robo-Advisors generate the majority of transaction value in 2019
reaching US$1,595.5 billion and US$222.4 billion in transaction value in with US$827.5 billion
2019, respectively.
▪ Alternative Lending
The U.S. is the world’s second largest Fintech player and a global finance − The segment has a global transaction value of US$267.1 billion in
innovation powerhouse. Due to the high disposable income of the 2019 and a CAGR2 of about 8.2% through to 2024
population and a high share of migrant workers, the U.S. is a leader in
the Personal Finance segment. − Marketplace lending creates most of the transaction value in 2019
with US$86.3 billion
The market in Europe is smaller compared to China and the U.S. The
leading country in Europe is the United Kingdom. Nevertheless, if the ▪ Alternative Financing
Brexit has larger effects on the market, forecasts have to be adjusted. − The segment has a global transaction value of US$5.8 billion in
2019 and with a CAGR2 of about 10.3%, it will remain the smallest
category in FinTech in 2024
1: Transaction value 2: CAGR: Compound Annual Growth Rate / average growth rate per year
Digital Payments generates the highest transaction
value within FinTech with US$3,858.6 billion in 2019
Estimated market development
Global transaction value forecast in billion US$

Digital Payments Personal Finance Alternative Lending Alternative Finance
8,266.9
7,314.6
6,365.0
5,404.1
4,406.4
3,858.6
2,900.6
2,476.4
2,054.1
1,627.4
1,191.6
1,000.3
267.1 291.5 334.3 363.6 382.7 396.9

5.8 6.1 7.3 8.2 8.9 9.5
2019 2020 2021 2022 2023 2024

We have adjusted our 2020 transaction value forecast
Coronavirus impact: FinTech forecast
Global transaction value within FinTech segments in ▪ It is not yet clear how FinTech will react on the COVID-19
million US$ in 2020 pandemic and economic lockdown
7 ▪ Until then, transaction value losses are difficult to predict
Alternative Financing 313 -11%
6
Alternative Lending 291 ▪ The most crucial factors for FinTech segments for each
Personal Finance 1.257 -7%
country are:
1.075
-14% › Impact of COVID-19 pandemic on household budgets
-5%
› Declining capital investments
› Government support
▪ Digital Payments will be least affected by COVID-19 due to
Digital Payments 4.626
revenue increase in some segments of eCommerce
4.406
▪ The strongest impact will hit on Personal Finance
Pre COVID-19 Post COVID-19
1: More Information about the COVID-19 adjustment can be found in the methodology document
FinTech is a highly competitive market with fast-
changing business models
Key player landscape1
Digital Payment Personal Finance Alternative Lending Alternative Financing
Digital Robo- Crowd- Crowd-

Commerce Advisors lending funding
Mobile POS P2P Money P2P Marketplace Crowd-

Payments Transfers Lending investing
1: Key player overview does not represent the entire market landscape
Technology enabler or disruptor? Where FinTech adds
value to the financial system
Core competencies of FinTech and banks
FINTECH BANKS
Revolutionary approach Scale

▪ Customer-centric products ▪ Access to capital
▪ Digital touchpoints ▪ Distribution
▪ Direct peer-to-peer business models ▪ Trusted intermediary
Financial
Industry
Technology Infrastructure
▪ Cutting-edge technology – e.g. AI1 ▪ Technology
▪ Lean “as-a-service” approach ▪ Existing connectivity
▪ Seamless integration ▪ Data access
▪ E2E2 digital processes and
communication
Expertise
▪ Market structure
▪ Regulation and compliance
1: AI = Artificial Intelligence 2: E2E = end-to-end

Blockchain and machine learning are game-changing
technologies in financial services
Trend analysis (1/2)
Blockchain
The most frequently used buzzword within FinTech is probably blockchain. Blockchain is a distributed ledger
technology that autonomously records peer-to-peer transactions across decentralized computers without a
central authority. Information is written in blocks that are visible to everyone. The blockchain grows with the
number of transactions and information stored in it. Blockchain participants, also called “miners”, provide
computing power to append new blocks and get an incentive for their work referring to a public blockchain.
This makes fraudulent activities almost impossible, because of the immense number of equivalent replications.
The most popular application at the moment are cryptocurrencies, e.g. Ethereum and Bitcoin. A blockchain
can be characterized as a value-exchange protocol and has applications not only in the finance sector, but also
to establish better transparency in reselling and transferring intellectual property or digital goods.
Machine Learning
Machine Learning is relevant in many different aspects of the FinTech industry. One such example is an
automated investment service known as a Robo-Advisor, where a self-learning algorithm simulates market
outcomes and decides which asset class is best suited to the individual needs of an investor. It incorporates
huge amounts of real-time data and goes beyond human capabilities.
There are, however, many other areas in the financial industry where machine learning can enhance business-
related decision making. Some examples include credit scoring, personal finance management and fraud de-
tection, but also marketing and customer relationship management for banks and other financial institutions.
Machine learning can increase the accuracy and speed of decision-making and offers a huge potential when
applied to predictive analysis to reduce risks and fraud.

P2P platforms and alternative credit scoring remove
traditional borrowers from the credit chain
Trend analysis (2/2)
Alternative credit scoring

Alternative credit scoring is the process of using publicly sourced personal consumer information to obtain
reliable risk profiles of loan seekers or potential customers of online stores.
Companies specialized in alternative credit scoring collect public personal data from social networks and
accessible online profiles and run it through scoring algorithms based on personal preferences, location, or
other similar personal information. Enriched with transaction-related data from previous purchases,
outstanding loans, income, credit card or bank account information, these data sets allow alternative risk
profiling in addition to renowned credit rating services such as U.S.-based FICO.
These services offer new potential especially for consumers and loan seekers from the “underbanked“ parts of
the population, giving them access to P2P lending and other services that require a financial risk profile.
Peer-to-peer platforms
Peer-to-peer (P2P) platforms bring together strangers and make it possible to create digital fundraising events
for new products, distribute equity shares in small businesses, as well as source loans directly from private
investors.
P2P payments are very convenient for end-users, especially when functionality is integrated with other
applications such as social media or messaging apps. Access, processing speed and money transfer costs
through digital channels are notably superior to traditional bank transfers.
The challenge for platform providers is to ensure reliability and confidence in transactions. Fast, reliable
scoring algorithms and fraud detection processes are therefore key to building a trustworthy brand and
unlocking a new market potential that cannot be addressed by traditional banks.

A sufficient digital infrastructure is the necessary basis
for developing digital markets
Key market indicators: digital infrastructure overview
Global Ø 2019
Percentage of total population using the internet on a monthly basis. High internet
INTERNET
PENETRATION
57.6% penetration means access to more choice options to an increasing number of
households.
Access to broadband internet is crucial for establishing digital services. Only an always-
BROADBAND 14.8 on mentality and a high amount of data traffic leads to consumers integrating online
SUBSCRIPTION per 100 capita shopping in their everyday lives.
Average internet connection speed in kbits/s. With rising connection speed, more
CONNECTION 17,207 sophisticated services and functions like high-quality videos and 3D simulation become
SPEED kbits/s available.
Percentage of total population using a smartphone on a monthly basis. Next to

SMARTPHONE
PENETRATION 54.3% smartphones, more and more other devices, which are able to make orders or
payments, are equipped with a permanent internet connection (e.g. smartwatches).

Internet penetration is especially high in some
European countries, China is lagging behind
Key market indicators: internet penetration
Internet penetration in 2019

90.5%
85.9% 85.4%
80.8% Ø 76.5%
76.6%
Europe
69.7%
60.1% Ø 57.6%
Global
U.S.

From a global perspective, broadband subscriptions
and connection speed are continuously rising
Key market indicators: fixed broadband subscriptions and average connection speed
Global fixed broadband subscriptions and average connection speed

Fixed broadband subscription per 100 capita Average connection speed in kbits/s
34,667
30,815
15.6 15.8 16.0

15.1 15.4
14.5 14.8
14.0
23,607 27,123
20,291
17,208
14,391
11,845
2017 2018 2019 2020 2021 2022 2023 2024

Due to the rise of smartphones, online commerce has
become more accessible
Key market indicators: smartphone penetration
Smartphone penetration in 2019

89.9%
86.8%
84.5%
80.5%
73.5% Ø 68.5%
67.0% Europe
61.7%
Ø 54.3%
Global
U.S.

The rising adoption of FinTech is also influenced by
various socioeconomic factors
Key market indicators: socioeconomic overview
Global Ø 2019
GROSS DOMESTIC 12,099 Gross domestic product in US$ in relation to the total population. The GDP is a
monetary measure of the market value of all goods and services produced in one year
PRODUCT per capita in
US$ and is common to determine the economic performance.
CONSUMER 6,850 Average consumer spending per capita of private households in US$. Knowing the
expenditure per capita gives necessary insights into price developments and the average
SPENDING per capita in
US$ willingness to engage in financial operations.
FINANCIAL The percentage of population having an account (by themselves or together with
INSTITUTION 53.5% someone else) at a bank or another type of financial institution. Increasing the financial
inclusion is one of the driving forces of FinTech development.
ACCOUNT
The percentage of population using the internet to pay bills or buy something online in
ONLINE PAYMENT
USERS
42.8% the past 12 months. Growth of online payments and any digital services contributes to
the further growth of this KPI.

GDP per capita is by far the highest in the U.S.,
followed by Germany
Key market indicators: gross domestic product
Gross domestic product per capita in 2019 in US$

65,142
46,518
41,814 41,751
33,091
29,921 Ø 27,417
Europe
Ø 12,099
Global
10,295

Per-head consumption expenditure in the U.S. is
more than 11 times higher than in China
Key market indicators: consumer spending
Consumer spending per capita in 2019 in US$

44,255
26,199
23,059
21,943
20,108
18,082 Ø 14,747
Europe
Ø 6,850
Global
4,159

73% of the European and almost 54% of the global
population have an account at a financial institution
Key market indicators: financial institution account
Share of population having an account at a financial institution in 2019
86.4%
80.9% 80.5% 79.4% 78.7% 78.3%
Ø 72.0%
72.6%
Europe
Ø 53.5%
Global
1: Only includes countries listed in the Digital Market Outlook

UK has the highest share of online payment users in
the world
Key market indicators: online payment users
Share of online payment users in population in 2019

81.8%
75.0%
71.8%
68.5%
58.3% 57.8% Ø 53.7%

52.4% Europe
Ø 42.8%
Global
1: Only includes countries listed in the Digital Market Outlook

Agenda

user
▪ Business models
▪ Penetration rates
▪ Trend analysis
▪ Market drivers
▪ Company profiles
▪ Deep dives
21
DIGITAL
PAYMENTS
The Digital Payments market segment
includes payments for products and services
which are made over the Internet as well as
mobile payments at point-of-sale (POS) via
smartphone applications.
22
Digital Payments: products and services
Overview: market scope
Digital Commerce Mobile POS Payments
▪ All consumer transactions made via the Internet which are directly ▪ Transactions at point-of-sale that are processed via smartphone
related to online shopping for products and services applications (so-called "mobile wallets")
▪ Online transactions can be made via various payment methods ▪ The payments are made by a contactless interaction of the
(credit cards, direct debit, invoice, or online payment providers, such smartphone app with a suitable payment terminal belonging to the
as PayPal and AliPay) merchant.
▪ The data transfer can be made via wireless standard NFC (Near Field
Communication) or by scanning a QR code to initiate the payment.
Note: The following are not included in this segment: transactions between businesses (Business-to-Business payments), bank transfers initiated
online (that are not in connection with products and services purchased online), and payment transactions at the point-of-sale where mobile
card readers (terminals) are used.
China is a global leader in Digital Payments
Overview: customer benefit and market development
Customer benefit Market size and future development

It is obvious that the way we pay for goods and services, online as well as With a global transaction value of about US$3,858.6 billion in 2019, the
offline, is about to change radically due to emerging digital services. Digital Payments segment made up by far the biggest share of the total
Thanks to the continuous rise of smartphones and online (and mobile) FinTech market. The high transaction value in Digital Commerce is driven
shopping, the FinTech revolution is already in full swing, especially in the by the vast amount of products and services purchased online and
field of digital payments. Digitization has brought along a disruptive includes all eCommerce, eServices and Digital Media transactions or
change in checkout processes (online purchases) and payments at the bookings in eTravel. This is why Digital Commerce accounted for 72% of
POS (offline purchases). the total Digital Payment transaction value. Mobile POS payments
contributed about 28% or US$1,066.8 billion to the Digital Payments
The key question in this context is: To what extent will digital payment value in 2019.
systems substitute cash transactions? The outcome depends on
customer behavior (in terms of the digital commerce development) and When it comes to regional proportions, the U.S. and China have
customer benefits associated with using digital wallets at the POS. comparable transaction volumes, with Europe’s share staying
considerably smaller. The Chinese Digital Payment transaction value
Given the high internet coverage, the adoption of digital payment amounted to US$1,595.5 billion in 2019, followed by the U.S. with
services in developed countries is mainly a question of convenience and US$811.4 billion, and Europe with US$666.8 billion.
added value to the existing infrastructure. The most important drivers
are the simplicity of use, especially for people that are not tech-savvy, Although growth rates show high double-digit figures in the Western
the broad or ubiquitous acceptance, the reasonable transaction speed, world, relevant market growth in the next couple of years will be driven
the low cost and high security standards. The importance of each of the by mobile-first countries, especially China. There are now about 2 billion
criteria might differ between the payment categories and the cultural people worldwide who still live outside a financial system or without
mindset in different regions plays an important role in the adoption. permanent access to the internet. Global Digital Payments are expected
to double in transaction value by 2024 to reach US$8,266.9 billion.
When it comes to user and shop/merchant adoption of a specific Mobile Payments are expected to grow almost 4-fold between 2019 and
FinTech solution, PayPal is probably the most successful player in the 2024.
Western world today. It offers easy application and payment processes
for consumers, which are widely accepted by merchants worldwide.
1: CAGR: Compound Annual Growth Rate / average growth rate per year
A seamless integration of payment processes is
relevant in all digital commerce activities
Overview: assumptions and trends
Assumptions Trends
We observe that the payment industry is experiencing three major Large players such as PayPal, Apple, Amazon, and Facebook are
trends with sustainable long-term impact: seamless commerce, mobile investing significant amounts of money into online and mobile payment
payments & blockchain technology. solutions. The ongoing development from separate online shops
towards integrated online shopping ecosystems, in particular the merger
Seamless integration of payment processes has relevance in every of shopping and social media / messaging, opens up new business
context, be it online shopping, in-store purchases or peer-to-peer models and opportunities for digital payment methods.
payments. Usability is the key to high conversion rates and consumer
adoption. High security standards throughout the payment process will In this field, China, as a mobile-first country, sets the standards for
most likely be ensured by biometrical methods such as fingerprint mCommerce shopping as well as mobile POS solutions very high. The
authentication. successful integration of payment solutions into social messaging
services gave birth to two huge payment systems with an enormous
Another important factor is the growing impact of mobile devices not user base, namely Alipay (Ant Financial) and WeChat Pay (Tencent).
only for POS shopping but also for mobile checkout processes in the These two payment providers cover almost the entire Chinese Mobile
eCommerce world, as well as the integration of P2P payments into Payment market. Paying the taxi driver, buying a coffee to go on the way
messengers and social networks. Especially in mobile-first countries, to work, ordering cinema tickets and splitting the bill between friends –
high convenience and usability on mobile devices is inevitable. all this is covered by one single payment app. This development is
A third dimension is blockchain technology, which is closely connected predestined to sooner or later reach Europe and the U.S. as well.
to cryptocurrencies. Here we have a completely new technology without In Europe we observe an evolving FinTech start-up landscape, especially
any legacy players in the market. The technology promises to facilitate in the field of online and mobile Banking. However, market dynamics
secure direct transactions without intermediaries. However, the impact and pervasion of innovative FinTech solutions are not comparable to the
of blockchain technology on financial regulation is not yet foreseeable. situation in China or the U.S.
The European Commission states that “existing regulation will still apply”,
but like in other areas of FinTech, regulation can have a drastic impact
on the future development of the markets.

The market's largest segment is Digital Commerce
with a transaction value of US$2,791.8 billion in 2019
Market sizes: global

8,266.9
7,314.6
+16.5%1
6,365.0
4,154.4
5,404.1 3,407.3
2,703.8
4,406.4
2,063.0
3,858.6
1,479.7
1,066.8
3,907.3 4,112.6
3,341.1 3,661.2
2,791.8 2,926.7
2019 2020 2021 2022 2023 2024
Europe shows the highest growth in Digital Payments
Market sizes: regional comparison (1/2)
Transaction value forecast in billion US$

China United States Europe
+17.2%1
3,529.6
1,898.0
+18.7%1
1,572.4
1,595.5 +13.1%1
1,502.6
581.4 798.4
777.9
811.4 666.8
1,631.6
257.1 96.3
1,014.2 774.1
554.3 724.7 570.5
2019 2024 2019 2024 2019 2024
With a transaction value of US$154.9 billion, the UK is
now the biggest Digital Payments market in Europe

+18.8%1
366.4 +13.7%1
+21.5%1
196.1
188.1
58.6
210.8
102.0 +20.2%1
+15.0%1
103.2
154.9 3.2 96.5
84.6
31.0 71.0
137.5 6.0 32.0 50.6
100.0 42.1 38.4
155.6 86.1
123.9 4.7 4.6
65.0 52.6
37.4 33.8 45.9
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024
Most Digital Commerce users live in China
User numbers: regional comparison (1/2)
Number of users forecast in millions


1,676.2
1,231.3
1,093.0
832.9
554.2
454.6
246.9 278.3
583.1
398.4 167.5
41.8 74.7 71.4
2019 2024 2019 2024 2019 2024

Germany has the highest user numbers in Digital
Commerce within Europe in 2019

68.2
61.0 60.0
55.2
51.3
44.6
40.3
35.4
31.7
27.3
18.1 19.7
13.0
10.0
7.1 8.1
3.6 4.7
2.6 1.9
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024

Out of the three major regions, U.S. users generate the
highest average transaction value in Digital Commerce
Average transaction value per user: regional comparison (1/2)
Average transaction value per user forecast in US$

1,459 6,158 1,348

2019 2019 2019
1,218 2,245 1,255
3,255 10,412 4,765

2024 2024 2024
1,493 2,604 1,397

Average transaction values in the EU top 5 countries
are going to increase in the future

4,374 887 2,350

2019 2019 2019
2,244 1,668 1,457
11,666 2,977 7,872

2024 2024 2024
2,551 2,018 1,678
1,011 2,469
2019 2019
1,371 1,064
3,188 6,256
2024 2024
1,489 1,139

The adoption of Mobile POS Payments is already quite
high, but the market is still growing
Penetration rates: innovation diffusion
Innovation diffusion curve for 2019
27.6% Diffusion
(accumulated users)
12.7%
10.5%
10.0%
3.1% 3.9% 4.3%
Innovators 2.5% Early adopters 16.0% Early majority 50.0% Late majority 84.0% Laggards 100.0%
The diffusion of innovations graph shows successive groups of consumers adopting Mobile POS Payments (the graph above shows the penetration rate
of selected countries). Innovations in general are not adopted by all individuals at the same time. Instead, they tend to adopt in a time sequence, and
can be classified into adopter categories based on how long it takes until they begin using the service. Diffusion is considered to be the rate and volume
at which innovations spread among their users (an adoption rate of 100% is theoretically possible but not realistic). Considering the convenience of
mobile payment technologies, the Mobile POS Payments market is likely to experience further growth in the next years.

PERSONAL
FINANCE
The Personal Finance market segment
contains automated investment services
(Robo-Advisors) as well as cross-border digital
remittances between private users.
In this chapter, the current market size and

development of the Personal Finance market
will be discussed. Also, TranferWise will be
presented.
34
Personal Finance: products and services
Robo-Advisors Digital Remittances
▪ Asset management providers who offer automated online portfolios ▪ Cross-border payments between individuals, not including payments
in which private investors can choose investment volumes depending for purchased goods and domestic peer-to-peer transactions
on their scope and appetite for risk
▪ “Online-pure players” such as Transferwise, WorldRemit and Currency
▪ The advantage lies in the passive role of the investor, who may not Cloud optimize the use of digital infrastructures to achieve time and
want or cannot afford ongoing personal monitoring of their portfolio cost savings
development
▪ Remittances often occur on a regular basis and the majority of
▪ In the Robo-Advisors segment, transaction value refers to the assets remittance services users are migrants and people with private
under management of automated online portfolios contacts in other countries
Note: Online brokers without automated and recommendation-based advisory functions are not included in the Robo-Advisor segment. Funds
transferred domestically are not included in the definition of Digital Remittances.
In 2019, the U.S. accounted for the highest share in
global Personal Finance transaction value

Technological improvements in personal financial services in particular In comparison to Digital Payments, the biggest segment in the FinTech
affect the processes of transferring money across borders and investing market according to our definition, Personal Finance is considerably
money for private purposes. smaller in terms of transaction value and assets under management.
Transaction value and assets under management (AuM) in Personal
For investors, Robo-Advisors are a cost-efficient way to invest money, Finance combined accounted for US$906.8 billion in 2019.
following their preferences in terms of balancing chances and risks.
Customers have the possibility to invest in stocks, bonds and other In 2019, technology-eager users in the U.S. accounted for the highest
categories without actively managing the portfolio. The algorithms can global share of the Personal Finance transaction value and AuM. The
be adjusted to the investor‘s risk preferences and will allocate the assets U.S. market share corresponded to 69%, a total of US$625.3 billion.
based on data-driven, automated decisions in order to maximize returns Furthermore, over 73% of all Robo-Advisor managed assets worth
for the investor. When used correctly, automated portfolio management US$607.4 billion were located in the U.S.
reduces the risk of miscounselling and provides better chances on
higher investment returns than traditional portfolio management. The second biggest region in the Personal Finance segment was China
with a market size of US$65.0 billion in 2019. Similar to the U.S., the
As more and more people have access to the internet and online major share of this amount resulted from Robo-Advisors, with total
financial services, these service offerings are of great benefit in financially assets under management of US$61.4 billion. In comparison, the Digital
underdeveloped countries. When it comes to cross-border money Remittances segment, worth US$3.6 billion, is of little relevance in China.
transfers, the feasibility of transferring money from one individual to The European market accounted for market size of US$110.0 billion in
another highly depends on its cost. Online remittance service providers 2019 and only 12% of the global market size.
charge lower fees and make the process of sending and receiving
money much easier, as visiting a bank branch of office is not necessary The global FinTech market is expected to continuously grow at double-
anymore. digit average annual growth rates up to 2024. The Personal Finance
market is expected to show a CAGR1 of 23.8%, resulting in a market
volume of US$2,639.8 billion by 2024.
Key success factors for FinTech in Personal Finance
are speed, efficiency and low fees
Assumptions Trends
FinTech is penetrating areas of the consumer finance business that are All over the world, FinTech start-ups are evolving. Based on lean and
currently controlled by banks. There are three conceivable scenarios agile product development, often focused on mobile user experiences,
regarding the future of financial services: FinTechs mostly offer a more innovative product portfolio than
traditional banks.
First option: Banks will adapt to technological innovations or partner
with FinTechs. Almost all banks are intensively screening the FinTech As traditional bank branches have ignored consumers’ shift towards
landscape, many of them have own incubators or are investing actively digital technologies (especially with regard to financial products) for a
in start-ups to benefit from the technological advantage and fast and decade, there is still a broad spectrum of products and services
agile product development process. primarily covered by traditional banks with low mobile convenience or at
high costs for consumers.
Second option: Banks will ignore alternative FinTech forms. This might
be the case if FinTechs struggle to scale and gain more relevance. Many One example for an evolving FinTech trend is the replacement of cost-
start-ups are focusing on niche segments, which do not endanger the intensive offline services with a more cost-effective digital service. The
core business of banks. This could result in a peaceful coexistence with UK-based company TransferWise, for example, has focused on cross-
FinTechs occupying different niche markets. border funds transfer. They offer transparent services for their
customers without using a physical bank branch.
Third option: FinTechs will substitute banks as the primary financial
service provider for consumers. If banks are not able to improve and We further observe large investment funds actively investing in Robo-
streamline internal processes and build convenient digital customer Advisory technology (e.g. Blackrock, Goldman Sachs), as the efficiency of
touchpoints, they will probably continue to exist, but without serving portfolio management due to automated services promises high return
innovative financial products to their customers. This will dramatically rates compared to old-fashioned alternatives. One must also expect a
reduce margins and decrease the relevance of banks to consumers consolidation of players in the Robo-Advisory industry, as profitability is
accordingly. strongly related to scalability and high volumes under management.

The market's largest segment is Robo-Advisors with a
transaction value of US$906.8 billion in 2019

2,639.7
152.5
2,252.7
139.7
+23.8%1
1,865.5
124.4
1,474.3
106.9
1,075.4 2,487.3
906.8 87.9 2,113.0
79.3 1,741.1
1,367.4
987.5
827.5
2019 2020 2021 2022 2023 2024
Europe shows the highest growth in Personal Finance
with a CAGR1 of almost 23%

United States Europe China
+22.4%1
1,715.1
31.9
1,683.2
625.3
17.9 +26.0%1
348.6
+17.0%1
607.4 63.0
109.9 142.5
285.6 64.9 11.2
34.6 131.2
75.3 61.4 3.6
2019 2024 2019 2024 2019 2024
With total transaction value of US$14.0 billion in 2019,
the UK is first in Personal Finance among the EU 5

+25.1%1
+33.4%1
50.2 +30.4%1
4.0 43.7 +25.4%1
39.3
9.9 34.4 3.3
5.5
+24.8%1
46.3
16.4 13.4
33.7 36.1
2.4 10.3 11.1 28.9 10.4 0.1
3.3 1.6 4.4
14.0 5.6 13.2
4.7 7.8 8.9 0.1
4.4
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024
By 2024, almost 232 million of Robo-Advisor users will
live in China

China Europe United States

231.8
87.8
36.7
14.4 15.0
2.8 5.6 6.6 1.3 2.6
0.2 0.4
2019 2024 2019 2024 2019 2024

Germany shows the strongest demand for Digital
Remittances within Europe in 2019

3.7
3.0
2.3
2.0
1.4
1.0 1.0 1.0

0.9
0.8
0.5 0.5 0.5
0.4 0.4 0.3 0.3
0.2 0.2
0.1
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024

Of three major regions, the U.S. customers invest
most with of Robo-Advisors

United States China Europe
13,335 23,053 12,197
2019 2019 2019
92,145 699 5,237
12,058 27,269 11,297
2024 2024 2024
112,422 566 7,782

Automated investments in Europe will increase in the
future

5,964 12,050 16,075

2019 2019 2019
13,563 3,397 7,512
5,150 11,097 14,034

2024 2024 2024
15,504 9,085 12,417
16,047 247
2019 2019
16,203 13,133
17,331 244
2024 2024
17,623 12,764

The U.S. is by far the leading country when it comes to
Robo-Advisors
Deep dive: Top-10 Robo-Advisors
Top Robo-Advisors by assets under management in US$ billion
Merrill Edge Guided Investing 200.0
Vanguard Personal Advisor 140.0
Schwab Intelligent Portfolios 41.3
Wealthfront 20.0
TD Ameritrade Essential Portfolios 19.9
Betterment 16.4
Personal Capital 8.6
Ally Invest Managed Portfolios 4.7
E*Trade Adaptive Portfolio 3.9
1: Information based on latest available data, as at May 2020. We do not claim completeness of the information given
45 Sources: Statista estimates based on company information, press releases, Graphiq, Nerdwallet, CNBC, Business Insider, Backend Benchmarking
TransferWise is one of the rare U.K.-based unicorns
and offers digital services for P2P money transfers
Company profile: TransferWise (1/2)
Availability Background
TransferWise has collected almost US$773 million in funding, with a list
of prominent investors, e.g. Lead Edge Capital, Andreessen Horowitz,
and Index Ventures. With its latest funding of US$292 million, the
company has been valued at more than US$3.5 billion.
In May 2017, TransferWise announced profitable operations for the

financial year 2017 for the first time since its foundation in 2010. In
2019, its huge customer base transfers more than US$5 billion every
month and is spread over 59 countries all over the world.
Quick facts Business model

Headquarters and foundation: London (03-2010) TransferWise offers a convenient and cost-effective way for cross-border
money transfers to its more than 6 million customers.
Funding volume1: US$772.7 million
Charges are based on the currency from which the money is going to be
Annual revenues (FY ’18): US$232.7 million converted and the payment method. Charges differ between a flat fee
No. of employees1: ~1700 plus a variable fee, e.g. for GBP transactions, and a variable fee only, i.e.
a minimum fee which needs to be paid anyways, e.g. for EUR/$US
No. of customers1: over 6 million transactions.
Monthly transaction value1: ~US$5 billion The used exchange rates are the real exchange rates (mid-market rates),
with the promise of no additional conversion premiums.
1: As of 9-2019 2: TransferWise can only make transfers that involve a currency conversion; transfers from one EUR account to another one are
not possible
46 Source: TransferWise.com, EU-Startups.com, Crunchbase.com, Bloomberg.com
Since its foundation in 2010, TransferWise has
collected almost US$780 million
Company profile: TransferWise (2/2)
TransferWise funding per funding round (in US$ million) Total Funding1: US$773m
Series B Series D Debt

Seed US$25.0m US$26.0m financing
US$1.3m US$84.3m
2011 2013 2015 2017 2019

2012 2014 2016 2018
Series E
US$280.0m
Secondary
Seed Series A US$292.0m
US$0.05m US$6.0m Series C
US$58.0m
1: as at 9-2019
47 Source: Crunchbase.com
ALTERNATIVE
LENDING
The Alternative Lending market segment
includes bank-independent loan allocation for
SMEs (Crowdlending) and for personal loans
(Marketplace Lending or so-called Peer-to-
Peer lending) through private or institutional
investors via online platforms.

development of the Alternative Lending
market will be discussed. Also, Prosper will be
presented.
48
Alternative Lending: products and services
Crowdlending Marketplace Lending
▪ Crowdlending platforms (also: lending-based Crowdfunding) enable ▪ Marketplace Lending platforms offer private users the option to place
small and medium-sized enterprises to get loans from private and requests for loans in an online marketplace to find private investors
institutional investors via an online brokering platform who would invest at an appropriate interest rate
Note: Loans to companies which cannot be counted as SMEs are not included in this segment. Online comparison marketplaces for bank loans
are not included in this segment.
Alternative Lending gives underserved groups of the
population and SMEs access to lending

Major benefits for personal and business borrowers alike are apparently With a global transaction value of about US$267.1 billion in 2019, the
time savings, flexibility and less bureaucracy. And many potential Alternative Lending segment is the third biggest segment within the
borrowers (especially in developing countries) without access to the FinTech market.
traditional financial sector – as they do not have a bank account or might
be regarded as unworthy for credit – will be able to get a loan granted in From an international perspective, comparing the three major regions
the Alternative Lending market. U.S., China and Europe, the size of the Chinese Alternative Lending
market is remarkable. With a transaction value of US$222.5 billion, China
P2P Marketplace Lending enables private persons seeking a personal or accounts for 83% of the global Alternative Lending transaction value in
consumer loan to apply within a very short time frame for an online loan 2019. The major share of this transaction value is contributed by
listing. The marketplace performs a credit scoring based on big data Crowdlending, which amounted to US$164.0 billion in 2019. The
analytics in order to derive an appropriate interest rate. If the application demand of China’s SMEs for loans can not be fully covered by the
passes minimum requirements, the listing appears online and can traditional financial sector.
receive investor funding. Applications and the respective borrowers are
then categorized in different groups, based on their creditworthiness The U.S. is the second biggest region with a transaction value of
and default risk. To reduce default risks for investors, the loans and the US$32.5 billion in 2019. However, compared to the overall U.S. credit
desired funding volume can be split into multiple certificates, meaning market, this figure is still rather low, and the Alternative Lending market
that one investor does not need to fully fund a complete loan. accounts for only a tiny share of the overall financial sector.
Crowdlending, the other segment covered in this report, is an alternative Europe shows a considerably smaller transaction value of US$8.8 billion
way of financing small and medium-sized businesses (SMEs). The in 2019. The trust in the traditional financial sector is still high in Europe
baseline mechanisms and processes are similar to P2P Marketplace and the interest rates are quite low. This deprives Alternative Lending
Lending, except that loans are not personal or consumer but business models of mass market adoption. Thanks to continuous high growth
loans. If the listing is approved, private and institutional investors can rates through to 2024, the global Alternative Lending transaction value
fund the loan and profit from a financial return, once the loan is is expected to reach US$396.9 by the same year, and again that the
refunded. major share of this growth is contributed by China, which will account
for a global market share of 88% by 2024.

The segment is currently experiencing trust and
regulation issues
Assumptions Trends
The future of alternative lending in general looks promising. Especially in One of the most predominant challenges for alternative lending is
developing countries, China in particular, as mentioned before, more insufficient government regulation, meaning that governments either
and more people are looking for consumer loans outside the traditional allow platforms to function in a legal grey area partly beyond regulation,
banking sector. The same applies for business loans due to the or ban such activities altogether.
increasing number of SMEs.
In the U.S. there is currently a growing lack of confidence in P2P and
We believe that the efficiency of alternative lending platforms, for both SME lending platforms, as existing players have not been capable of
consumer as well as business loans, can attract more borrowers and consistently limiting fraud and maintaining a high level of trust in the
investors alike. In our opinion, two of the major driving forces for the general public.
expected market development, dependent on the geographical area,
are the development of the financial sector in general (in emerging In Europe, the investor landscape is very active. A huge number of
economies) and the convenience that alternative forms of lending potential investors is looking for promising investment opportunities
contribute to the average borrowing process (in developed countries). outside the traditional financial sector, and yet the European Alternative
Lending market appears to remain considerably small. This illustrates
Many people in developing countries do not yet have access to the that in Europe it seems to be more complicated to find lucrative
traditional banking sector. Nevertheless, they still have a huge demand investment opportunities than affordable loan conditions, thus the
for loans in order to pursue their businesses or for private consumption. future growth potential is currently limited.
This is where crowdlending platforms fill the gap.
In China, the situation is completely different. Chinese platforms, such as
In comparison, low interest rate policies have been in place for almost a CreditEase, eye up to the American market in order to expand their
decade now in developed countries. This is one of the major obstacles business. With the chance of opportunity to also grant loans of higher
for further adoption of alternative lending, because as long as interest amounts in the U.S. market and get U.S. investors on board as well, the
rates are low and loans are granted widely, alternative lending is no rapid development of this industry is even expected to accelerate.
significant lever compared to a bank loan. However, if those policies
change, this situation may as well change quickly.

The market's largest segment is Crowdlending with a

396.9
+8.2%1 382.7
363.6
334.3 99.2
98.0
96.2
291.5
267.1 92.7
85.4
86.3
284.7 297.6
267.4
241.6
206.1
180.8
2019 2020 2021 2022 2023 2024
China shows the highest growth in Alternative Lending

348.2
+9.4%1
69.9
222.5
58.5
278.3
164.0 +0.7%1
+3.6%1
32.5 33.8
8.8 10.5
24.1 24.9
8.5 8.8 5.8 3.0 7.2 3.3
2019 2024 2019 2024 2019 2024
With a total loan volume of US$4.24 billion, the UK is
the biggest market among the EU 5 in 2019

+2.2%1
4.72
4.24
1.88
1.80
+0.2%1
2.84 +13.2%1
2.44 +2.5%1
0.78 0.79 +1.0%1
0.03 0.04 0.60
0.37 0.42 0.32 0.07
0.75 0.75 0.28 0.29
0.23 0.14 0.24 0.18 0.23 0.04 0.24 0.05 0.27
0.05 0.53
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024
Most Crowdlending users live in China
Number of loans forecast in thousand


52.780
37.110
34.130
24.790
1,580 1,700 1,020 1,310

110 120 70 90
2019 2024 2019 2024 2019 2024

The UK shows the strongest demand for alternative
loans within Europe in 2019
Number of loans forecast in thousand

272
249
41 45
34 37 33
21 23 21
2 4 2 5 2 3 1 1 5 7
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024

Out of the three major regions, U.S. users invested
most in Alternative Loans in 2019
Average funding per loan forecast in US$

2,359 15,279 2,910
2019 2019 2019
4,418 75,359 81,467
2,050 14,681 2,542
2024 2024 2024
5,273 76,251 84,176

The average funding per loan in Europe is going to
increase in the future
Average funding per loan forecast in US$

7,218 8,077 5,540

2019 2019 2019
117,195 320,549 62,885
6,914 7,630 5,316

2024 2024 2024
124,102 323,351 69,270
6,877 2,245
2019 2019
49,448 60,049
6,594 1,987
2024 2024
50,346 77,740

Generic P2P marketplace lending process overview
Deep dives: P2P marketplace lending process overview
Borrowers
Issuing bank
Personal lending marketplace
Loan Borrower Loan Investors Loan Loan Loan Investment

application evaluation1 listing funding issuing purchasing repayment payout2
Investors
Financial benefits for parties involved
Borrower: Lending marketplace: Issuing bank: Investor:

Loan granted Transaction fee from bank, service Interest rate from Return on investment
fee from investors loan issuance3 from marketplace
1: Includes determination of loan interest rates, based on a prior credit scoring 2: Including initially agreed interest rate 3: Interest rate is based
59 on creditworthiness of marketplace and therefore lower than for individual borrowers
Prosper is a pioneer P2P Marketplace Lending
platform
Company profile: Prosper
Prosper was founded in 2005 as the first peer-to-peer lending
marketplace in the United States. Since then, Prosper has facilitated
more than $16.7 billion in loans to more than 900,000 people and now
operates from two offices – in San Francisco and in Phoenix.
The idea behind Prosper is to bring together investors seeking for a

flexible investment option and borrowers seeking personal loans
between US$2,000 and US$40,000.
Prosper charges transaction fees and provides its own credit scoring in
exchange.
Quick facts Analyst opinion

Total loan issuance US$16.7bn (Q4 2019) The marketplace allows investors to allocate minimum investments of
US$25 per loan and thus diversify the risk of unsecured loans. Prosper
Loan originations/year US$2.7bn (Q4 2019)
also provides an auto-invest function, which picks investments based on
Net Revenue US$153.6m (Q4 2019) parameters that the investors can preset.
EBITDA (adjusted) US$3.9m (Q4 2019) Despite the general drop-off of the marketplace lending industry since
2016 and a valuation drop in 70.5 % compared to 2015, Prosper was
Net loss US$13.7m (Q4 2019) able to raise US$50 million in the latest funding round in 2017 and was
valued at US$550 million (post money). In 2019, Prosper has introduced
Employees 404 (2019)
Home Equity Lines of Credit (HELOCs).
60 Source: Company Information 2019

ALTERNATIVE
FINANCING
The Alternative Financing market segment
refers to digital fundraising services. Included
are Crowdinvesting models, which focus
particularly on start-ups exchanging
investment for company shares, and
Crowdfunding solutions, which offer non-
monetary compensation.

development of the Alternative Financing
market will be discussed. Also, Kickstarter will
be presented as well as other start-ups that
are active in this area.
61
Alternative Financing: products and services
Crowdfunding Crowdinvesting
▪ Crowdfunding (also: reward-based Crowdfunding) is a form of ▪ Crowdinvesting (also: equity-based Crowdfunding) defines a variety of
financing independent from financial institutions and location of the transactions where an unspecified number of parties come together
campaign creator or investor to invest in equity shares or profit-related returns (for example,
royalties or convertible loans)
▪ Crowdfunding campaigns can be initiated for a wide range of
different purposes such as product launches, art-, music- and film-
financing, software development, scientific research etc.
Note: Not included in this segment are: investor group loans (see Crowdlending), reward-based Crowdfunding campaigns which have no
monetary value for the investor, for example product launches, art-, music- and film-financing (Crowdfunding), as well as donations
Alternative Financing offers access to funding from a
global network of private and institutional investors

The financing of small and medium-sized enterprises (SME) is often a The 2019 global transaction value of Alternative Financing models is
pain point for founders and business executives. This is particularly true US$5.8 billion, with Crowdinvesting being the biggest segment. From an
for projects or campaigns with creative purposes which do not focus on international perspective, the largest Alternative Financing market is
major financial returns. As banks follow strict rules in terms of loan Europe, accounting for a 38% share of the global market.
origination and normally have time-consuming decision processes, Crowdinvesting is the largest segment, with US$4.8 billion in 2019.
traditional funding is not accessible to many entrepreneurs and artists.
United States contributed 23% to the global transaction value, with
Alternative ways of financing tackle this problem and offer more flexible Crowdinvesting transaction value of US$0.8 billion in 2019. China
ways of getting funding from a global network of private and institutional accounted for 18% of the global Alternative Financing market.
investors. This means that potential investors can decide on their own if
they want to value a new project as a promising approach they want to The global transaction value is expected to grow at an average annual
support and if they consider the responsible persons trustworthy. rate of 10.3% between 2019 and 2024. This will result in a total market
size of US$9.5 billion by 2024, which is almost twice more than the 2019
Crowdfunding – probably the most common term in this context – refers size.
to a reward-based financing model. This means businesses present their
ideas or prototypes on online platforms such as Kickstarter in form of Europe partakes in this strong growth with transactions growing at a
campaigns. The campaign targets a predefined amount of capital that is CAGR1 of 10.8% up to 2024. China and the U.S. are expected to grow at
needed to realize the project. Investors either get the final product at a average annual rates of 10.2% and 6.1% respectively in the same time
later stage or a comparable material asset (merchandise etc.) as a frame.
reward for their funding.
Crowdinvesting is similar, but it offers a small equity stake of the

company in form of securities instead of a tangible reward. Investors
speculate on the successful development of a business and may receive
financial return for the ownership of a small piece of a company, for
example in later financing rounds.
The lack of necessary regulation creates uncertainty in
the evolving market
Assumptions Trends
All in all, the growth projections for Alternative Financing and other The growth potential for Alternative Financing models is obvious, but the
crowdsourcing instruments are very promising. However, the market lack of necessary regulation brings high uncertainty to the evolving
faces one major challenge: controlling fraudulent activities. market, in developed and developing countries alike. However, if
regulators succeed in improving trust and security for both borrowers
Crowdbased financing forms for business activities only add value to the and investors without restricting the dynamic and flexibility of this
market if borrowers and investors can trust one another. Regulation is market, projections for the future look very promising.
the key to securing this trust by establishing binding rules and
guidelines. Financial regulation on the other hand is very complex and In general, U.S. platforms provide all necessary infrastructure and can
slows down the dynamic of an evolving market. aggregate a huge audience on both sides, borrowers and investors.
Kickstarter & Indiegogo, two of the biggest players in this field, will
In Europe, financial loan-based and investment-based crowdfunding continue to dominate the reward-based Crowdfunding space.
platforms are partly regulated by the Financial Conduct Authority (FCA).
Platforms offering financing services for businesses in the U.S. have to In the U.S., venture capital from private or institutional investors is
comply with SEC regulations, while China has taken a very liberal mostly not the major issue when it comes to financing a project. That
approach towards crowdbased financing forms in the past. explains the “low” growth rates compared to China and Europe. And in
Europe, the low interest rates in the banking sector make alternative
As the Alternative Financing market is basically a two-sided platform investments more and more attractive to a wide range of investors.
model – borrowers who need funds for their projects, and investors
seeking a reward or financial return for their investment – both sides In China, on the other hand, the Banking Regulatory Commission has
need to have an incentive to participate. For borrowers, this is clearly intervened in the market. Therefore, one can expect a consolidation of
flexibility and less bureaucracy. For investors, Crowdfunding offers the platforms as a result of stricter regulation, as not every single provider of
chance to receive a new product, for example. Crowdinvesting gives Alternative Financing models is expected to comply with increasing
investors the chance to receive promising financial returns, compared to security standards.
the traditional banking sector. As long as central banks flood financial
markets with money and interest rates are low, alternative financing
models stay highly interesting for potential investors.

The market's largest segment is Crowdinvesting with a

9.5
8.9
+10.3%1
8.2
7.3
6.1
5.8
8.3
7.8
7.1
6.3
4.8 5.2
1.0 0.9 1.1 1.1 1.2 1.2
2019 2020 2021 2022 2023 2024
Europe shows the biggest growth in Crowdinvesting
with a CAGR1 of over 10.8%

+10.8%1
3.7
+10.2%1 +6.1%1
2.2
1.7 3.3 1.8
1.0 1.3
1.9 0.8 1.2
1.0 1.7
0.0 0.0 0.3 0.4 0.5 0.6
2019 2024 2019 2024 2019 2024
With a financing volume of US$0.8 billion, the UK is
the biggest market among the EU 5 in 2019

+8.7%1
1.2
0.8
1.1
0.7 +7.1%1 +15.7%1

+4.8%1
+9.0%1
0.16 0.18 0.19
0.12 0.13 0.09 0.05 0.08
0.07 0.05 0.10
0.05 0.09 0.04 0.14 0.07 0.02
0.17
0.1 0.1 0.05 0.02 0.03 0.02 0.06 0.02
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024
U.S. users are most active in Crowdfunding
Number of campaigns forecast in thousand


62.4
59.9
52.2 51.6
27.2
17.4
14.2
10.5 11.7
9.2
3.3
1.3
2019 2024 2019 2024 2019 2024

UK shows the strongest demand for Crowdinvesting
within Europe
Number of campaigns forecast in thousand

10.2
7.6
6.2 6.2
4.0 3.7 3.6

2.9 2.9 3.4
2.7 2.5
0.7 1.0 0.5
0.3 0.4 0.3 0.1 0.2
2019 2024 2019 2024 2019 2024 2019 2024 2019 2024

Out of the three major regions, European campaigns
get the highest average funding in Crowdinvesting
Average funding per campaign forecast in US$

96,889 108,452 88,986
2019 2019 2019
2,529 6,188 8,286
116,760 122,276 102,025
2024 2024 2024
7,012 6,910 9,096

Average funding per campaign is going to increase in
Europe in the future
Average funding per campaign forecast in US$

94,260 94,829 291,147

2019 2019 2019
165,544 18,608 6,133
110,195 102,843 325,855

2024 2024 2024
18,065 20,349 7,276
278,484 301,932
2019 2019
7,575 6,066
327,887 336,939
2024 2024
8,936 6,520

Kickstarter is one of the leading platforms for
crowdfunding campaigns for creative products
Company profile: Kickstarter (1/3)
Kickstarter is a public-benefit corporation that maintains a global
crowdfunding platform focused on creative projects such as films, music,
stage shows, comics and video games.
Founded in 2009, the New York (Brooklyn)-based company raised
US$4.56 billion between 2012 and 2019 in funding from backers
including NYC-based venture firm Union Square Ventures and angel
investors such as Jack Dorsey.
The platform provides a facility for gathering money from the public,
which circumvents traditional ways of investment. Project creators
choose a funding goal and deadline. Kickstarter applies a 5% fee to the
total amount of the funds raised (if funding goal is met).
Quick facts Analyst opinion

# of sucessful projects 182,738 Kickstarter targets inventors, creators, entrepreneurs and artists and
gives them a place to present and promote an idea, concept or
Total funding raised US$5,02 billion prototype. There are also tech-savvy, lifestyle-oriented and art-loving
Total backers 17,973,909 early adopters seeking new and inspiring products. The reward-based
crowdfunding model has received a lot of public interest with products
Total pledges 62,460,083 such as the Pebble watch.
Alexa rank (global) 537 However, the globally operating platform will have difficulties to further
increase its significance in financing volume. Therefore, Kickstarter’s
Launched April 28, 2009 value is shifting from sourcing money to global marketing reach.
72 Source: Company Information, as at May 2020

Games projects received the highest funding, while
music projects had the highest success rate1
Amount raised Successful funding

Category Launched projects Success rate1
(in million US$) (in million US$)
Games 52,718 1,300.00 1,200.00 41.02%
Design 41,347 1,140.00 1,040.00 38.31%
Technology 42,825 933.89 815.19 20.64%
Film & Video 74,671 249.07 227.80 37.61%
Music 62,478 225.63 205.91 49.98%
Publishing 50,071 182.43 160.66 33.25%
Food 30,055 168.73 139.96 25.14%
Fashion 31,723 188.09 165.10 28.08%
Art 39,117 131.13 116.99 44.31%
Other2 62,362 263.74 237.68 43.52%
1: Number of successfully funded projects divided by number of all projects that have reached their deadline
2: Other includes comics, theater, photography, dance, crafts, and journalism
73 Source: Company information
One of the global top 10 and most famous crowd-
sourced projects was the Pebble Time (smartwatch)
List of projects with highest funding in million US$

291.0
102.0
27.9 20.3 19.0 15.0 14.7 13.5 13.3 12.8
Star Citizen Elio Motors Glowforge Pebble Time Prison Flow Hive 2 Coolest Cooler MATE X Flow Hive Pebble 2
(video game) (three- (3D laser (smartwatch) Architect (beekeeper kit) (portable (foldable (beekeeper kit) (smartwatch)
wheeled car) printer) (video game) cooler) eBike)
Leading platform:
multiple multiple
+ independent
platforms platforms
independent
Information based on latest available data, as at May 2020

74 Sources: Kickstarter, Indiegogo, Company Information
Agenda

user
▪ Business models
▪ Penetration rates
▪ Trend analysis
▪ Market drivers
▪ Company profiles
▪ Deep dives
75
APPENDIX
Detailed consumer information is one key
factor for describing market developments
precisely. In this appendix, we give detailed
information on three different user
characteristics: age, income, and gender
distribution of users. The data is based on
Statista's Global Consumer Survey.
Furthermore, we provide an overview of the
market structure presented in this report.
76
Over 34% of U.S.-Americans using Mobile POS
Payments are between 25 and 34 years old
User demographics: users of mobile POS payments in the U.S.
Users by gender Users by income

Medium income
35.7%
Low income
40.8%
High income
Female 23.5%
45.5%
Users by age
54.5% Male
34.6%
27.2%
17.5%
14.7%
6.0%
18 -24 years 25-34 years 35-44 years 45-54 years 55-64 years
"How have you conducted payments online in the past 12 months?"; Multi pick; n=4,120
77 Source: Statista Global Consumer Survey, as at October 2019
Usage of Mobile POS Payments in China is equally
spread among genders
User demographics: users of mobile POS payments in China
Medium income
33.3%
Low income High income

33.3% 33.3%
Female
48.0%
Users by age
52.0% Male
36.4%
23.2%
21.2%
16.2%
3.0%
A higher share of people with high incomes use
Mobile POS Payments in the UK
User demographics: users of mobile POS payments in the UK
Medium income
Low income 26.7%

50.0%
Female High income
23.3%
41.7%
Users by age
58.3% 28.4%
Male 26.9%
22.8%
16.4%
5.6%
Users of Mobile POS Payments in Germany are
predominantly male
User demographics: users of mobile POS payments in Germany
Medium income
Female 32.9%
Low income
45.9%
28.1% High income
21.2%
Users by age
37.5%
27.1%
71.9% 18.8%
Male
10.4%
6.3%
People with a high income are most likely to use
Mobile POS Payments in France
User demographics: users of mobile POS payments in France
Medium income
Low income
19.3%
Female
54.5%
High income
26.1%
31.4%
Users by age
33.3%
68.6% 21.9%
20.0%
Male 16.2%
8.6%
Users of Mobile POS Payments in Spain are
predominantly male
User demographics: users of mobile POS payments in Spain
Medium income
34.1%
High income
Female Low income 38.4%
27.4%
38.8%
Users by age
27.9% 29.2%
61.2%
Male
18.5%
14.3%
10.1%
The highest share of Mobile POS Payments users in
Italy are between 35 and 44 years old
User demographics: users of mobile POS payments in Italy
Medium income
Low income
32.2%
Female 50.7%
High income
33.3% 17.1%
Users by age
30.6%
66.7% 20.6%
18.9% 18.3%
Male
11.7%
Digital Payments market structure
Segment Sub-segments Out of scope
Consumer transactions made via the Internet which Traditional Bank Transfers
are directly related to online shopping for products
and services. Online transactions can be made via
Digital Commerce various payment methods (credit cards, direct debit,
invoice, or online payment providers, such as PayPal
and Alipay).
Business-to-Business
Payments
Digital Payments
Includes transactions at Point-of-Sale that are

processed via smartphone applications (so-called
“mobile wallets”). Well-known providers of mobile
Mobile POS
wallets are ApplePay and Samsung Pay. The payment Point-of-Sale card
Payments in this case is made by a contactless interaction of payments at mobile card
the smartphone app with a suitable payment
terminal belonging to the merchant.
readers (mPOS terminals)
84
Personal Finance market structure
The Robo-Advisors segment contains private asset

management providers that offer automated online
portfolios in which private investors can choose
Non-automated financial
investment volumes depending on their scope and advisory, financial planning
private appetite for risk. Providers such as Schwab or broker services
Intelligent Portfolios, Wealthfront or Betterment
allow private and/or institutional investors to invest
their money in pre-existing portfolios which are
Robo-Advisors automatically managed by individually configured
algorithms. The advantage of these services lie in the
Personal finance
passive role of the investor, who may not want or management services
Personal Finance cannot afford ongoing, personal monitoring of their (PFM) and budgeting
portfolio development. Such automated investment manager
services allow for the possibility of reaching attractive
returns with low starting capital and without specific
investment know-how, which stands in contrast to
classic investments offered by traditional banks
Domestic peer-to-peer
Digital Remittances are online and mobile cross- money transfers (e.g. via
border money transfers made over the internet messenger apps) and
Digital Remittances between residents and non-residents and earnings
online bank trasfers
transfer from short-time workers from other
countries to their country of origin.
85
Alternative Lending market structure
Crowdlending Platforms (also: lending-based crowdfunding)

enable small and medium-sized enterprises to get loans from
single or multiple private and institutional investors via an
online brokering platform. On credit platforms, businesses
Crowd- can obtain small loans up to a set maximum value. As a rule, Bank loans and metasearch
lending financing requests are analyzed by the provider via an engines (for credit and
(Business) internal scoring system and are checked against additional insurance offers)
minimum requirements such as turnover. Subsequently
these financing requests can be invested in by private and
institutional investors at an appropriate interest rate
Alternative determined by the credit rating of the company.
Lending Marketplace Lending platforms offer private users the option
to place requests for loans in an online marketplace to find
private investors who would invest at an appropriate interest
rate. Portals such as Lending Club apply a credit score and list
P2P Market- the financial requests by intended purpose before fixing a Traditional venture capital
place Lending lending rate. One or more investors can then serve the credit investments by institutional
(Personal) request. Although banks act in cooperation alongside the or private investors
platform providers, the lending is done, in principle, without
direct exposure, risk audits or the formal requirements
normally associated with credit lending. Users are defined in
this case as active borrowers on an online platform.
86
Alternative Financing market structure
Crowdfunding (also: reward-based crowdfunding) is a form of

financing independent from financial institutions and location
of the campaign creator or investor. Reward-based crowdfun-
ding campaigns can be initiated for a wide range of different Traditional bank loans
purposes such as product launches, art- and film-financing,
Crowd-
scientific research etc. Usually there is a financing goal
funding defined by funding volume and time to reach this goal for
every campaign. The campaign creator publishes engaging
content (e.g. videos, text) that explains the goal and motiva-
tion of the fundraising. Almost everyone can participate as an Donation-based
Alternative investor (the only prerequisite is a valid payment account). crowdfunding
Financing
The term Crowdinvesting (also: equity crowdfunding) defines
a variety of transactions where an unspecified number of
investors come together in order to invest in a well-defined
purpose. The following segment exclusively considers “equity- Traditional venture capital
Crowd- based crowdfunding”; investments in equity shares or profit-
investments by institutional
investing related returns (for example, royalties or convertible loans).
Crowdfunding has become a popular financing option for or private investors
startups and is considered a part of venture capital financing.
Well-known platforms in this area are EquityNet, CrowdCube
and Seedrs.
87
About the Statista Digital Market Outlook
80+ 150+ 7 30,000+

markets locations years (2017–2023) interactive statistics
The Digital Market Outlook presents up-to-date figures on markets of the

digital economy. The comparable key figures are based on extensive analyses
of relevant indicators from the areas of society, economy, and technology.
What is the size of the eCommerce fashion market in Spain?
How much is spent on social media advertising in India?
The answers to these and many more questions can be found in the Statista
Digital Market Outlook. It provides forecasts, detailed market insights, and key
indicators for the digital economy.
Seven digital verticals: eCommerce, Smart Home, Digital Media,

eServices, FinTech, Digital Advertising, eHealth
Direct access & downloads, fully integrated into the Statista database
Market insights, forecasts, and key performance indicators
Outlook reports with segment-specific topics (top companies, trends,

deep dives)
Find out more on www.statista.com/outlook/digital-markets

About the Statista Global Consumer Survey 2020
50+ 55 6,500+ 700,000+

topics & industries countries int. brands interviews
Marketing & Finance & insurance
The Statista Global Consumer Survey offers a global perspective
social media
on consumption and media usage, covering the offline and online
world of the consumer. It is designed to help marketers, planners,
and product managers understand consumer behavior and
consumer interactions with brands. eCommerce & Health
retail
▪ Cross-tabulation
▪ Customized target groups
Food & nutrition Housing & household
▪ Trend and country comparisons equipment
▪ Export in Excel (CSV) or PowerPoint format
Internet & devices Travel
Media & digital media Services & eServices
Mobility Characteristics &

demographics
Find out more on www.statista.com/customercloud/global-consumer-survey

89
About the ecommerceDB
The toolbox for all eCommerce-relevant questions
ecommerceDB.com offers direct access to URL-related revenue

information together with forecasts, customizable top, country,
region and category rankings, KPI analyses, and extensive
eCommerce-relevant contact information to over 10,000 online
stores.
In-depth analysis for over 10,000 online store URLs
Adjustable top, category, country & region

rankings
Download shop profiles for seamless processing

CONTACT US
Direct contact to our eCommerce analysts TEL +49 40 28 48 41 409
E-MAIL [email protected]
Find out more on ecommercedb.com

90
About Statista Research & Analysis
Market research – Market Analysis – Data Modeling
Statista Research & Analysis is a provider of comprehensive services in the

fields of market intelligence. Building upon our experience as one of the
world's leading statistics portals, our analyst team can support you in the
collection and evaluation of market, client and competitive information –
tailored to your individual needs. Our team consists of former top tier
management consultants, accomplished market researchers and business
analysts.
Consumer surveys and expert interviews
Market and competitive intelligence
Market sizing and forecasts

CONTACT US
TEL +49 40 282441 805
E-MAIL [email protected]
Find out more on www.statista-research.com

91

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Bilder immer einfärben in:

Blue, Accent color 1

FinTech Report 2020

FinTech, a combination of financial services and technology, has been

With this report we provide a comprehensive overview of the state of

2 Source: Statista Digital Market Outlook 2020

01 Market Outlook 02 Segments 03 Appendix

Digital Payments Personal Finance Alternative Lending Alternative Financing

Digital Commerce Robo-Advisors Crowdlending Crowdfunding

4 Source: Statista Digital Market Outlook 2020

Summary Key takeaways

Global transaction value forecast in billion US$

267.1 291.5 334.3 363.6 382.7 396.9

6 Source: Statista Digital Market Outlook 2020

Pre COVID-19 Post COVID-19

Digital Payment Personal Finance Alternative Lending Alternative Financing

Digital Robo- Crowd- Crowd-

Mobile POS P2P Money P2P Marketplace Crowd-

Revolutionary approach Scale

1: AI = Artificial Intelligence 2: E2E = end-to-end

10 Source: Statista Digital Market Outlook 2020

Alternative credit scoring

11 Source: Statista Digital Market Outlook 2020

Percentage of total population using a smartphone on a monthly basis. Next to

12 Source: Statista Digital Market Outlook 2020

Internet penetration in 2019

13 Source: Statista Digital Market Outlook 2020

Global fixed broadband subscriptions and average connection speed

15.6 15.8 16.0

2017 2018 2019 2020 2021 2022 2023 2024

14 Source: Statista Digital Market Outlook 2020

Smartphone penetration in 2019

15 Source: Statista Digital Market Outlook 2020

16 Source: Statista Digital Market Outlook 2020

Gross domestic product per capita in 2019 in US$

17 Source: Statista Digital Market Outlook 2020

Consumer spending per capita in 2019 in US$

18 Source: Statista Digital Market Outlook 2020

Share of population having an account at a financial institution in 2019

1: Only includes countries listed in the Digital Market Outlook

Share of online payment users in population in 2019

58.3% 57.8% Ø 53.7%

1: Only includes countries listed in the Digital Market Outlook

01 Market Outlook 02 Segments 03 Appendix

Digital Commerce Mobile POS Payments

Customer benefit Market size and future development

25 Source: Statista Digital Market Outlook 2020

Global transaction value forecast in billion US$

2019 2020 2021 2022 2023 2024

Transaction value forecast in billion US$

China United States Europe

2019 2024 2019 2024 2019 2024

Transaction value forecast in billion US$

Number of users forecast in millions

China United States Europe

2019 2024 2019 2024 2019 2024

29 Source: Statista Digital Market Outlook 2020

Number of users forecast in millions

30 Source: Statista Digital Market Outlook 2020