Fintech is mainstream, according to a global survey from EY which finds that financial technology services are used by the majority of people in India, China and the UK, although are considerably less popular in the US, France and Japan.
EY quizzed more than 27,000 people from a total of 27 countries on their use of five fintech categories: money transfer and payments, budgeting and financial planning, savings and investments, borrowing, and insurance.
In China and India – where the likes of Ant, Tencent and Paytm dominate – 87% of respondents use fintech services, while South Africa (82%), Russia (82%), Colombia (76%) and the UK (71%) also have high usage numbers.
In contrast, usage is at just 46% in the US, 35% in France and 34% in bottom-of-the-table Japan.
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Tom Bull, UK fintech leader, EY, says: “With China and India leading the way, fintech is moving to the mainstream and no major financial institution wants to be left behind. On average globally, nearly two-thirds of global consumers (64%) have used two or more fintech services in the last 6 months.”
The survey finds that consumers are not discerning about sticking to one fintech services provider; more than a third of Chinese and nearly a quarter of UK adults use five or more providers for different services.
EY also suggests that one telling sign of the industry’s maturation is the evolution in what consumers look for in a provider. This year’s survey found that a global average of 27% of consumers prioritise price, while 20% value the ease of opening an account, a shift from 2017, when ease of access was the top priority for 30% of users
Money transfers and payments services are continuing to lead the charge with use of one or more services standing at 75% in 2019, while an average of 96% of respondents are aware of such services.
Insurtech services have also expanded rapidly, with an average of nearly half of global consumers using a premium comparison site, feeding information into an insurance-linked smart device or buying products such as peer-to-peer insurance.
Meanwhile, people around the world are increasingly willing to use fintech services from retailers (45%) and telcos (44%).
SMEs are also getting on the train, with a quarter of those surveyed using fintech services in all of banking and payments, financial management, financing, and insurance.
“Fintechs are addressing the needs of SMEs in their day-to-day business management, where tools such as online accounting, digital billing systems and payment processors are revitalising smaller companies’ capacity to focus on growing their business,” says Bull.