Digital finance is becoming mainstream, with 50% of tech-savvy consumers worldwide, who are now using money transfer and payments services, as EY, an
Digital finance is becoming mainstream, with 50% of tech-savvy consumers worldwide, who are now using money transfer and payments services, as EY, an accountancy and business consultancy company, found, and Financial News (fnlondon.com) reported.
EY interviewed more than 22,000 customers in 20 countries who are active online. In this way, they created a FinTech Adoptation Index. The latter suggested that a third of respondents said they regularly use financial technology services line online-only banks and mobile payment apps. China was definitely a leader there as 69 % of consumers in the country said they use these tools on a regular basis.
A regular user is being defined as a user who has used two or more fintech services in the last six months, as EY explained.
The report noted that the global number increased from 15% just two years ago. It is expected that more than half (52%) of consumers will become regular fintech users, as EY`s findings showed.
As written above, EY found that consumers use of digital technology has apparently increased in emerging markets like China and India that are “historically underserved” by traditional financial providers.
EY wrote that money transfer and payments services are used by half of consumers worldwide, while a quarter use fintech for insurance, 20% for savings and investments, and 10% for financial planning and borrowing.
Whereas these findings seem positive, start-ups in the field still struggle to convince the finance industry to adopt their products. It is to be seen how they can make traditional banks see the usefulness of their services.