Rapid emergence and evolution. Mass consumer adoption and significant market traction. Strong prospects for future growth. Those few ideas summarize the bright and brief history of FinTechs, as confirmed by the latest EY FinTech Adoption Index. Our most recent survey of more than 22,000 digitally active consumers highlights the impressive and rapid growth in adoption and the variations among 20 different mature and developing markets. There is no doubt FinTech has reached a tipping point.
FinTech usage by market
Four key consumer themes
1. FinTech has achieved initial mass adoption in most countries
FinTech firms have gained significant market traction. In the theory of innovation adoption, FinTechs has reached the key milestone of "early majority" adoption. The FinTech industry's success in emerging markets results from their ability to tap into tech-literate but financially under-served populations.
- Consumers using at least two FinTech services: 33% across 20 surveyed markets
- Markets with highest adoption rates: China (69%), India (52%)
- Average adoption across emerging markets: 46%
- Evidence of increasing awareness: 84% of customers are aware of FinTech services compared with 62% in 2015*
2. New services and new players are driving higher adoption
Building upon the strength of their compelling value proposition and novel use of technology, FinTech firms continue to expand their offerings, which in turn attract more users based on their simplicity, transparency and personalization. New players, including established technology firms, are entering the market. Policymakers are clarifying regulatory frameworks in previously undefined areas, paving the way for more services.
- Most popular category: money transfer and payments, used by 50% of consumers in the last six months
- Category experiencing significant growth: insurance services, which have reached 24% adoption across markets
3.FinTech users prefer using digital channels and technologies to manage their lives
Unsurprisingly, usage of FinTech products and services is higher among younger consumers. Younger, "digital natives" are the most common users. They have a growing need for financial services and are more likely to consider non-traditional providers (as they often lack strong relationships with incumbents).
- Age segments with greatest FinTech usage: 25-34 (48%) and 35-44 (41%)
- Difference between FinTech users and non-users in preference for using digital channels to manage their lives: 26%
- FinTech "super-users" (adopting 5+ services): 13% of all consumers
4. FinTech adoption will continue to gain momentum
FinTech adoption is expected to increase in all markets, with a future adoption rate of 52% globally, as more non-users embrace FinTech.
- Markets with highest usage intent: South Africa, Mexico and Singapore
- Services with highest expected increase in demand: borrowing and financial planning
Most used FinTech services
Online foreign exhange
Pay via cryptocurrency
Online digital-only banks without branches
Non-banks to transfer money
Mobile phone payment at checkout
Car insurance using telematics
Insurance premium comparison sites
Activity-based health insurance
Peer-to-peer platforms for high-interest investments
Investments in equity crowdfunding platforms and rewards crowdfunding platforms
Online investment advice and investment management
Borrowing using peer to peer platforms
Borrowing using on-line short-term loan providers
Online budgeting and financial planning tools
FinTech adoption by the numbers
(compared with 16% in 2015)*
(Brazil, China, India, Mexico, and South Africa)
*Analysis considers six markets surveyed in 2015 study: Australia, Canada, Hong Kong, Singapore, the US and the UK. All figures have been rounded to the nearest whole percentage for consistency.
About the EY FinTech Adoption Index: Launched in 2015, the EY FinTech Adoption Index is designed to look past the hype and determine actual consumer usage of FinTech services over time. The 2017 study is based on more than 22,000 online interviews of digitally active consumers in 20 markets around the world. Our methodology applies an unweighted averaging of results and uses a “one market, one vote” approach to provide a global, cross-market perspective on themes and trends.