Fintech adoption surges — and not just among millennials
Adoption of financial technologies among consumers worldwide has surged in the past 18 months setting up fintech to enter the mainstream, according to the latest EY Fintech Adoption Index.
An average of approximately one-third of digitally active consumers in 20 markets polled for the study now use fintech, an EY press release said.
Emerging markets are driving much of this adoption, the study found. The average adoption among digitally active consumers in Brazil, China, India, Mexico and South Africa was 46 percent, according to EY.
China and India have seen the highest adoption rates 69 percent and 52 percent of respondents, respectively. Fintech firms in these countries have been particularly successful at tapping into the tech-literate but financially underserved segments, according to the study. The U.K. also has shown significant growth, with adoption rates now standing at 42 percent.
Predictably, millennials — those 25 to 34 years old — followed by those 35 to 44 years old. However, adoption is growing among older adults, as well. The survey revealed that 22 percent of digitally active respondents age 45–64 and 15 percent of those older than 65 said they regularly use fintech services.
The EY fintech Adoption Index indicates that fintech adoption is set to increase in all 20 markets covered by the study and could reach an average of 52 percent globally, based on stated intention of future use among respondents.
"Fintechs are not only becoming significant players in the financial services industry, but are also shaping its future," Imran Gulamhuseinwala, EY global fintech leader, said in the release. "Their new propositions are increasingly attractive to consumers and this trend is only set to continue as awareness grows, concerns are allayed and new advancements are made. Traditional firms, who sometimes struggle to deliver the same seamless and personalized user experiences, will undoubtedly need to step up their efforts to remain competitive. I think it's likely that we will see greater collaboration between traditional firms and fintechs in the future."
The online study polled more than 22,000 online interviews with digitally active consumers in 20 markets — Australia, Canada, Hong Kong, Singapore, the U.K., the U.S., mainland China, India, South Africa, Brazil, Mexico, France, Spain, Switzerland, Germany, Ireland, Japan, Netherlands, South Korea and Belgium-Luxemburg (considered as one market for this analysis). The study was conducted by EY Sweeney.