FinTech adoption ‘set to go mainstream’
Written by Anthony Strzalek
Levels of FinTech adoption among consumers has surged globally over the past 18 months and is poised to be embraced by the mainstream, according to a new EY report.
The research found that an average of 33 per cent digitally active consumers across the 20 markets in the EY study now use FinTech.
The study, based on 22,000 online interviews with digitally active consumers across these 20 markets, shows that the emerging markets are driving much of this adoption with China, India, South Africa, Brazil and Mexico averaging 46 per cent.
China and India in particular have seen the highest adoption rates of FinTech at 69 per cent and 52 per cent, respectively. The UK has also shown significant growth, with adoption rates now standing at 42 per cent.
The study also revealed that money transfers and payments services are continuing to lead the FinTech charge with adoption standing at 50 per cent in 2017, based on the consumers that were surveyed. 88 per cent of respondents said they anticipate using FinTech for this purpose in the future.
The EY FinTech Adoption Index says that FinTech adoption is set to increase in all 20 markets covered by the study. Based on consumers’ intention of future use, FinTech adoption could increase to an average of 52 per cent globally.
Imran Gulamhuseinwala, global FinTech leader at EY, said: “FinTechs are clearly gaining widespread traction across global markets and have achieved the early stages of mass adoption in most countries. FinTechs, particularly in the payments and insurance space, have been very successful in building on what they do best – using technology in novel ways and having a laser-like focus on the customer.
“It really is now a critical time for traditional financial services companies. If they haven’t already, they need to urgently reassess their business models to ensure they are able to meet their customers’ rapidly changing needs. Disruption is no longer just a risk – it is an undisputable reality.”