EY Fintech Adoption Index
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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%