EY Fintech Adoption Index

EY FinTech Adoption Index
Canadian findings
Exploring a new financial services landscape
8.2%
Driven by innovative startups and major technology players, the booming
FinTech industry is capturing traditional market share by offering
customers easy-to-use and compelling products and services.
We surveyed more than 10,000 digitally active people around the world,
including more than 2,000 in Canada, to better understand the overall
rate of FinTech adoption, which users are adopting which products, and
the outlook for future usage.
X3
24.1%
Current FinTech users
Projected FinTech users
in the next year
Canadian responses: 2,000+
The FinTech phenomenon
Why use FinTech?
Why not use FinTech?
FinTech products – financial services products developed by non-bank,
non-insurance, online companies, are moving in on the traditional
financial services landscape and their products and services are catching
on. For traditional financial services companies, including banks, insurers
and wealth and asset management companies, the risk of disruption
is real.
The top reasons FinTech users give.
The top reasons non-users give.
Our survey shows that in Canada 8.2% of digitally active consumers have
used at least two FinTech products within the last six months, in the
form of money transfers and payments, and savings and investments,
in comparison to 15.5% globally. However, if awareness of the available
products and services increases, adoption rates could triple within
the year.
43.4%
43.8%
Easy to set up an account
15.4%
20.4%
More attractive rates/fees
Access to different products
and services
Better online experience
and functionality
12.4%
13.6%
11.2%
7.4%
10.3%
9.9%
Better quality of service
More innovative products than
available from traditional banks
Greater level of trust than with
traditional institutions
Did not have a need to use it
32.3%
33.7%
Prefer to use a traditional
financial services provider
27.7%
33.6%
Note:
Respondents selected the most important reasons.
21.3%
22.4%
Don’t understand how it works
Do not trust it
5.5%
4.3%
1.8%
0.6%
53.2%
57.2%
Was not aware it existed
Have used FinTech in the past
but don’t want to use it again
Global
Canada
11.2%
10.3%
0.8%
0.5%
EY FinTech Adoption Index
Canadian findings
Who are they?
Breakdown of FinTech users by income and age group.
Income
Age
Less than US $30,000
6.0%4.8%
US $30,001 – US $70,000
14.7%7.9%
US $70,001 – US $150,000
24.0%15.1%
US $150,000+
44.1%20.0%
Global
18-34 years old
35-54 years old
22.5%14.9%
16.5%9.8%
4.9%
55+ years old
1.8%
Canada
Current and future adoption in Canada
FinTech adoption is greatest among young, high-income groups
Breakdown of Canadian FinTech users by age and income group, and by current usage and intention
to use FinTech in the future.
Income
Less than US $30,000
7.8% 24.6%
6.5%
19.1%
1.6%
7.0%
US $30,001 – US $70,000
16.2%
40.6%
8.3%
29.2%
1.8%
11.4%
US $70,001 – US $150,000
25.8%
51.5%
17.3%
38.5%
1.3%
15.6%
US $150,000+
27.3%
54.5%
15.4%
30.8%
16.7%
50.0%
18-34 years old
Current
Future
© 2016 Ernst & Young LLP. All Rights Reserved. 1804854
35-54 years old
55+ years old
Key takeaways
All respondents
exploring FinTech in
the future
Respondents across all age
groups and income levels
said they intend to use
FinTech in the future
FinTech users
predominantly young,
high-income earners
Almost 1/3 of Canadian
FinTech users are under the
age of 34 and earn more
than $150,000
Adoption rate rising
fastest among high
income earners
If the respondents earning
US $150,000+ act like they
say they intend to, 43.3%
of that income group may
soon be FinTech users, up
from 20%
Adoption could triple
within the year
If awareness of the available
products and services
increases, adoption rates
could triple within the year
from 8.2% to 24.1%