The EY Fintech Adoption Index
4 July 2017
Within the past 18 months, there has been an international surge in the number of people accessing and utilising Fintech products. The EY Fintech Adoption Index revealed that the UK is leading the way (in terms of developed nations) when it comes to new technology adoption. It is an exciting time to be part of the industry, with particular regard to the number of Scottish start ups.
Of the 22,000 “digitally active” consumers surveyed, one in three are now accessing Fintech products on a regular basis. More and more people are now turning to online banking or apps in order to access a range of financial services and products. Even the simply act of being able to check your balance with little more than a few clicks or taps has revolutionised the banking industry.
The EY Index states: “FinTech firms share two core characteristics: a laser-like focus on the customer proposition and a willingness to apply technology in novel ways. Consumers are drawn to FinTech services because propositions are simpler, more convenient, more transparent and more readily personalised.
“This has a ripple effect across the industry as consumers come to expect these characteristics in all financial products, regardless of whether in retail banking, wealth management or insurance, and of who is providing the service.”
The UK currently has a 42% adoption rate of fintech technologies, with 50% utilising Fintech money transfer and payments services. The study also demonstrated that emerging markets such as China, India, South Africa and Brazil are driving the spread of Fintech, with adoption rates of up to 46%. Such data clearly underlines the international potential for any start up businesses and existing brands.
Unsurprisingly, it is the Millennial age bracket that is making the most use of Fintech, with 64% of users preferring to run almost all aspects of their day-to-day through digital channels. This is reflected in the decreased footfall in high street and local banks in favour of downloading an app.
Most importantly, there is absolutely no signs of the Fintech revolution slowing down, with growth expected to continue in the near future. The EY Index continues: “On the basis of anticipated future use, FinTech adoption could increase to an average of 52% globally, with the highest intended use among consumers in South Africa, Mexico and Singapore.
"Borrowing and financial planning are anticipated to more than double in usage. Money transfer and payments services remain the most widely used at 50%, with anticipated future use by 88% of consumers.”
Fintech firms are rapidly establishing themselves as the standard for financial services transactions, particularly amongst consumers who are unimpressed with the service they currently receive. You don’t have to wait in a queue on your lunch hour when you can simply transfer cash via an app.
Investment is still essential to this burgeoning industry, as is potential collaborations between well-established brands and exciting new start up companies. This is a really exciting time within the financial and banking industry as with new technological developments, come new opportunities.
If you would like to discuss Fintech recruitment or available roles with me, I would happy to chat with you confidentially. Click here to see my contact details.
Written By Shona Preston