Financial Technology services are poised for mainstream adoption on a global scale with 1 in 3 digitally active consumers now using fintech.
Levels of financial technology adoption among consumers has surged globally over the past 18 months and is poised to be embraced by the mainstream.
This according to the latest EY FinTech Adoption Index, which shows an average of 33 percent digitally active consumers across the 20 markets in the EY study now use fintech.
Emerging Markets Driven
The study, based on 22,000 online interviews with digitally active consumers across 20 markets, shows that the emerging markets are driving much of this adoption with China, India, South Africa, Brazil and Mexico averaging 46 percent.
China and India in particular have seen the highest adoption rates of fintech at 69 percent and 52 percent, respectively.
Fintech firms in these countries are particularly successful at tapping into the tech-literate but financially under-served segments, according to the study.
Payment Services and Insurance Lead
The EY FinTech Adoption Index evaluates services offered by fintech firms under five broad categories – money transfers and payments services, financial planning, savings and investments, borrowing and insurance.
It reveals that money transfers and payments services are continuing to lead the charge. Insurance has also made huge gains, moving from being one of the least commonly used fintech services in 2015 to the second most popular in 2017.
A Millennial World
The demographic most likely to use fintech are millennials – 25–34-year olds, followed by 35–44-year olds. The study revealed that people in this age range are comfortable with the technology and that they also require a wide range of financial services as they achieve lifestyle milestones.
There is however also growing adoption among the older generations. The highest proportional increases of intended use among consumers is expected in South Africa, Mexico and Singapore.
Singapore's Place
Meanwhile in Singapore, fintech adoption, while being lower than the global average, still saw an increase from 15 percent in 2015 to 23 percent in 2017.
«While FinTech adoption levels in Singapore are lower than the global average, the ground work has been laid and its anticipated penetration will increase across all categories in the next twelve months,» said Liew Nam Soon, EY Asean Financial Services managing partner, Ernst & Young Advisory.
«In Singapore, we anticipate adoption to increase to 56 percent with more usage by not just the millennials but the older generation, as awareness increases and the users gain greater comfort towards conducting financial transactions digitally,» added Liew.
