According to the latest report from EY The Fintech Adoption Index 2017, a study based on over 22,000 online interviews across 20 markets thus providing a global perspective on FinTech, one in three digitally active consumers use two or more FinTech services as 50% of them use mainly money transfer and payments services.
At the market level, FinTech has been adopted by an early majority of consumers in 16 out of 20 markets, moving beyond the segments of the population that seek out and test innovations. Notably, FinTech has reached the late majority in two markets, indicating that more than half the population are currently regular users of FinTech services.
Emerging markets are driving adoption. The five emerging markets in the 2017 report indicate that consumer FinTech adoption rates are well above the global average of 33%. Further, average adoption was 46% among these five markets, compared with an average adoption rate of 28% for the 15 remaining markets and the global average.
What are the drivers of success? Experts from EY argue that:
As many new FinTech firms are building completely new businesses from the ground up, they have the opportunity to put customer adoption and traction at the heart of their strategy, linked to their singular focus on the customer proposition. In our experience, this means that the DNA of FinTech firms is different from that of incumbent financial services providers, which appeals to those apt to be FinTech users. As FinTech firms mature, their focus on the consumer becomes a key area of competitive strength, alongside their use of technology to reduce costs and accelerate customer traction.
Download the full report here.