According to the EY Fintech Adoption Index 2017, China unsurprisingly leads the pack in adoption, followed by India, the UK, Brazil, and Australia.
Chinese fintech has grown enormously over the last few years and is now challenging the traditional Chinese financial sector more intensely than anywhere else in the world. The latest EY Fintech Adoption Index 2017 has found that China continues to lead the world in the adoption of financial technologies. 69% of the digitally active population in China are fintech users.
China is followed by India (52%), UK (42%), Brazil (40%) and Australia (37%) which close out the top five. The US placed 10th at 33%, behind South Africa (35%).
EY outlines the following key trends for 2017-
Fintech has achieved initial mass adoption in most markets
Fintechs have reached the key milestone of early majority adoption. The Fintech industry’s success in emerging markets results from their ability to tap into tech-literate but financially under-served populations. 84% of customers are aware of Fintech services in Australia, Canada, Hong Kong, Singapore, the US and the UK compared with 62% in 2015.
New services and new players are driving higher adoption
Fintech firms continue to expand their offerings, which is in turn, attracting more users. New players, including established technology firms, are also entering the market and policymakers are clarifying regulatory frameworks. Money transfer and payments are the most popular category, used by 50% of consumers in the last six months. Insurance services which have reached 24% adoption across markets are also experiencing significant growth.
Fintech users prefer using digital channels and technologies to manage their lives
Usage of fintech products and services is higher among younger consumers who not only have a growing need for financial services but are also more likely to consider non-traditional providers. Age segments with the greatest fintech usage are 25-34 (48%) and 35-44 (41%).
Fintech adoption will continue to gain momentum
EY expects fintech adoption to increase in all markets, with a future adoption rate of 52% globally. Markets with highest usage intent include South Africa, Mexico, and Singapore. Services with the highest expected increase in demand are borrowing and financial planning.
The EY Fintech Adoption Index is designed to determine actual consumer usage of Fintech services over time. The 2017 study is based on more than 22,000 online interviews of digitally active consumers in 20 markets around the world.
More here [EY]