A study by Utility Bidder has shown that five out of the top ten most prominent Fintech organisations for 2022 are crypto companies. This is important because it mirrors the impact and effect the revolutionary blockchain technology has made in barely a decade of existence in the financial market.
The term Fintech is used to describe any business that uses technology to modify, enhance or automate financial services for businesses or consumers. Some of these services include mobile banking, peer-to-peer payment services, automated portfolio managers, trading or saving as well as cryptocurrency trading and more.
Essentially, the purpose of Fintech companies is to help all involved parties to streamline the transaction process, eliminating potentially unnecessary steps. For instance, a mobile service like Flutterwave, Patricia and Kuda allows you to pay other people at any time of day, sending fiats and crypto directly to their desired accounts.
There is an ongoing exponential expansion in the financial technology industry across the globe. This has seen the rise of numerous digital payment wallets, investment platforms and cryptocurrency exchanges.
Read also: Kenya, Nigeria drop out of top 10 countries on 2022 global crypto adoption
More on the Fintech 2022 report
The Utility Bidder study analysed the top 50 fintech companies on the Forbes’ 2022 Fintech list. The research took into account the following four factors: total funding raised, the latest known valuation, the number of Twitter followers as of August 10, 2022, and the number of annual global searches between July 2021 and June 2022 according to Google Ads Keyword Planner.
Each company was assigned a normalised score out of ten for each factor, and the average of all four scores was used to determine the final ranking.
Among the top ten firms, OpenSea, the world’s largest non-fungible token marketplace, ranked second. It is also the leading blockchain and cryptocurrency company on the list with an overall fintech score of 8.61, just behind Chime, a personal finance company that tops the list with 9.69.
The other crypto and blockchain firms in the top ten include cryptocurrency exchange FTX – 7.86, Chainalysis – 7.40, Fireblocks – 7.38, and Circle – 7.36. They occupied the seventh to tenth positions in that order.
The remaining four of the top five most influential fintech companies on the 2022 fintech list include payment processing company, Stripe with 8.30 (3rd), credit card company, Brex with 8.18 (4th), travel card and expense company, TripActions with 8.14 (5th) and equity management company, Carta with 8.14 at the sixth position.
See a breakdown below:
According to the report, the fintech sector across the globe is expected to be worth more than £150 billion ($171 billion) by the end of 2022. Industry experts anticipate that the figure will exceed £175 billion ($228 billion) by 2024.
Related post: Metaverse will become a $679bn worth industry by 2030
Crypto companies are dominating
Although the crypto and blockchain space has been affected by unremitting bearish market conditions that have resulted in multiple bankruptcies, insolvencies and uncertainties, the report by Utility Bidder interestingly shows that half of the most influential organisations in the fintech industry in 2022 came from the same sector.
Although the Fintech space is in its evolving stage, the growing popularity of cryptocurrencies is revolutionising the entire industry. Increasingly, industry players are recognising the transformative impact of blockchain technology for generating more revenue, improving the end-user experience, delivery process, and efficiency as well as reducing risks in business operations.
Accelerated growth of cryptocurrency adoption across the globe will further strengthen the potential for worldwide expansion for many of the listed crypto companies. So far, blockchain technology has shown the potential to reduce high fees; increase payment transparency and efficiency while also eliminating fraud risk to a reasonable extent.
Most likely, the 2023 list will feature more crypto companies. Perhaps, the 2025 list will be dominated by them.
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