From payments to lending and the use of AI, Fintech is undoubtedly having an impact on traditional banking models. It is worth examining each of the factors more in-depth to better understand how Fintech is disrupting financial institutions.

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1. Digital Payments

These services allow customers to pay for goods and services with just a few taps on their smartphones. According to a report by Statista, the global digital payments market is expected to grow to $7.6 trillion by 2024, up from $3.9 trillion in 2020. Fintech companies like PayPal, Square, and Stripe are leading the way in digital payments, and they are gaining popularity among consumers.

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2. Online Lending

Fintech companies are also disrupting the lending industry by offering online lending services. These services allow borrowers to access loans quickly and easily, without the need for a physical branch visit. According to a report by Allied Market Research, the global online lending market is expected to reach $1,291.4 billion by 2027, growing at a CAGR of 21.15% from 2020 to 2027. Fintech companies like LendingClub, Prosper, and SoFi are leading the way in online lending, and they are gaining popularity among borrowers.

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3. Robo-Advisors

Fintech companies are also disrupting the investment industry by offering robo-advisory services. These services use algorithms and artificial intelligence to provide investment advice and manage portfolios. According to a report by ResearchAndMarkets, the global robo-advisory market is expected to reach $21.3 billion by 2026, growing at a CAGR of 32.9% from 2021 to 2026. Fintech companies like Betterment, Wealthfront, and Personal Capital are leading the way in robo-advisory services, and they are gaining popularity among investors.

Fintech is disrupting the financial industry, and traditional financial institutions are feeling the pressure. Digital payments, online lending, and robo-advisory services are just a few examples of how Fintech companies are transforming the way people access financial services and products. As the Fintech industry continues to grow, it is important for financial institutions to adapt and innovate to stay competitive.

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