China, India, UK, Brazil and Australia are the Top 5 FinTech adopters in the world as per EY FinTech Adoption Index 2017 report across 20 markets.
FinTech adoption was highest in China at 59%, followed by India at 52%, UK at 42%, Brazil at 40% and Australia at 37%. The average FinTech adoption across 20 countries is 33%.
FinTech adoption by digitally active consumers in Brazil, China, India, Mexico and South Africa average 46%, considerably higher than the global average. From an individual market perspective, China and India have the highest adoption rates at 69% and 52% respectively. This is because FinTech firms excel at tapping into the tech-literate, but financially underserved population, of which there are particularly high ratios in emerging countries.
Among various categories, money transfer and payments are driving FinTech adoption. 50% of digitally active consumers have used this type of service in the last six months, which suggests this category has reached “late majority” adoption. Insurance services have also seen significant increases, overtaking both savings and investments, and borrowing, with 24% adoption.
FinTech products and services is higher among younger consumers. Those with the highest use, 25- to 34-year-old consumers, are not only tech-savvy “digital natives,” but are also at the age where they have a greater need for financial services. In some markets, they have not developed many strong relationships with incumbent providers, and are willing to consider non-traditional options as alternatives.
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. 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.
2017 EY FinTech Adoption Index Highlights:
- 33% is the average FinTech adoption globally, compared with 16% in our 2015 study
- 46% is the average FinTech adoption across emerging markets: Brazil, China, India, Mexico and South Africa
- 50% of consumers use FinTech money transfer and payments services, and 88% anticipate doing so in the future
- 64% of FinTech users prefer using digital channels to manage all aspects of their life, compared with 38% non-users
- 13% of consumers are regular users of ve or more FinTech services (FinTech “Super Users”)
Source: EY FinTech Adoption Index 2017
The 2017 research is based on more than 22,000 online interviews in 20 markets. Our surveyed population is drawn from a demographically representative sample of each market to the extent available, and all references to consumers relate to individuals who are active online, which we refer to as “digitally active” in this report. The survey was conducted in 20 markets such as: Australia, Belgium and Luxembourg, Brazil, Canada, China, France, Germany, Hong Kong, India, Ireland, Japan, Mexico, the Netherlands, Singapore, South Africa, South Korea, Spain, Switzerland, the UK, and the US.