FinTech companies are reportedly ready for mainstream adoptation across 20 markets, with China and India at the lead.Fintech companies are gaining
FinTech companies are reportedly ready for mainstream adoptation across 20 markets, with China and India at the lead.
Fintech companies are gaining traction in the market, as EY FinTech Adoptation Index from 2017 found.
“FinTech adoption is expected to increase in all 20 markets, with a segment of current non-FinTech users shifting to FinTech services in growing numbers. 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.”, as stated on page 7 of the study.
According to the research, money transfer and payments services remain the most widely used at 50%, with anticipated future use by 65% of consumers.
“FinTech users are also becoming more diverse in their use of services, with 13% of those surveyed becoming super-users who regularly use five or more FinTech services.”, reads an excerpt from the report.
Emerging markets drive adoptation>
Fintech adoptation rates are high in emerging markets like Brazil, Mexico, South Africa, China and India. The five emerging markets in the 2017 report indicate consumer FinTech adoptation rates well above the global average of 33%.
“The primary factor in such high adoption is that FinTech firms excel at tapping into these tech-literate but financially underserved populations.”, as the researchers stated on page 12 of the report.
“Our five emerging markets are characterized by having growing economies and a rapidly expanding middle class, but without traditional financial infrastructure to support demand. Relatively high proportions of the populations are underserved by existing financial services providers, while falling prices for smartphones and broadband services have increased the digitally active population that FinTechs target.”, as the study added.
Progress of FinTech adoptation globally and across 20 markets
IMAGE: EY FinTech Adoptation Index 2017