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— report —

Rapid emergence and evolution. Mass consumer adoption and significant market traction. Strong future growth. These phrases summarize the bright, brief history of fin-techs — from the recent FinTech Adoption Index by firm Ernst + Young.

The report surveys more than 22,000 digitally active consumers — highlighting the impressive, rapid growth in adoption and the variations among 20 different markets. It’s clear that fin-tech has reached a tipping point.

And there will be more growth ahead in 2019. These fin-tech companies are setting the benchmarks for the global industry. They offer attractive, affordable, and valuable services to under-served consumers.

Traditional — and long-established — businesses must compete to “stay in the game.” Classic banks and institutions, credit card companies, lenders, insurance agencies, payment services, investment groups — all branches of the industry will rush to collaborate with on-trend start-ups.

In summary, they must upgrade to stay relevant — as millennial youth rise to control the digital, mobile future with their buying power and influence.

fin-tech products + services benefits | mobility, access, speed, value, efficiency, inclusion, ease

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report | astonishing growth of fin-tech

group: Ernst + Young firm
report title: Fin-Tech Adoption Index
deck: The rapid emergence of fin-tech.
year: 2017

read | the report
format: Adobe

Ernst + Young | summary + video: Fin-Tech Adoption Index
for year: 2017

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points | from the report
4 key consumer themes.

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— no. 1 —

An initial mass adoption of fin-tech in most countries.

The fin-tech firms have gained significant market traction. In innovation adoption terms, fin-techs have reached the key milestone of “early majority.” The fin-tech industry’s success in emerging markets is because it can tap into tech-literate but financially under-served populations. Key findings:

• consumers using at least 2 fin-tech 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 fin-tech services • in 2017
• evidence of increasing awareness — 62% of customers are aware of fin-tech services • in 2015
• average global fin-tech adoption — 33 % • in 2017
• average global fin-tech adoption — 16 % • in 2015
• fin-tech users who prefer digital channels to manage their lifestyle — 64 %
• non-fin-tech users who prefer digital channels to manage their lifestyle — 38 %

note: 2015 analysis of 6 markets surveyed: Australia, Canada, Hong Kong, Singapore, United States, United Kingdom
note: emerging markets are countries: Brazil, China, India, Mexico, South Africa

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— no. 2 —

New services + players are driving higher adoption.

Building on fin-tech’s value opportunities + novel use of tech, the products + services expand their offerings, and attract more customers. New players — including established technology firms — are entering the market. The policy-makers are specifying regulatory frame-works in new areas, paving the way for more services.

• the most popular category — money transfer + payments • used by 50 % of consumers in 2017
• the category experiencing rapid growth — insurance services • they’ve reached 24 % adoption across markets

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— no. 3 —

Customers of fin-tech prefer using digital channels + tech to manage their lifestyle.

Youth prefer fin-tech products + services, and lack strong relationships with traditional banks or providers.

• ages with most fin-tech use:  ages 25 -to- 34 — 48 %
• ages with most fin-tech use:  ages 35 -to- 44 — 41 %
• super-users — adopting 5+ services: 13 % of all consumers

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— no. 4 —

Adoption will gain momentum.

Future adoption rate of fin-tech is predicted to be: 52 % globally

• markets with highest use intent: South Africa, Mexico, Singapore
• services with highest expected increase in demand: borrowing + financial planning

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list | most used fin-tech products + services

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Percent of digitally active customers — who used each product:

money transfer + payments: 50 %

• online foreign exchange
• pay via crypto-currency
• overseas remittances
• online digital-only banks without branches
• non-banks to transfer money
• mobile phone payment at checkout

insurance: 24 %

• car insurance using telematics
• insurance premium comparison sites
• activity-based health insurance

savings + investments: 20 %

• peer-to-peer platforms for high-interest investments
• crowd-funding platforms: investments in equity -or- rewards
• online: investment advice + investment management
• online: stock brokerage
• spread-betting

borrowing: 10 %

• borrowing using peer-to-peer platforms
• borrowing using online short-term loan providers

financial planning: 10 %

• online budgeting and financial planning tools

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— notes —

* fin-tech = financial technology