Fintech adoption tipped to double in 2016
The level of fintech adoption among consumers is set to grow significantly in the next 12 months, new research has revealed.
EY’s inaugural FinTech Adoption Index – a survey of 10,131 digitally-active consumers in Australia, Canada, Hong Kong, Singapore, the UK and the US – found that 15.5 per cent had used at least two fintech services (financial services products developed by non-bank, non-insurance, online companies) in the past six months. It also suggested that adoption rates among digitally active consumers could double within the next 12 months.
EY Australia’s fintech leader, Anita Kimber, said it is a change that will require traditional financial services companies to revisit their product, service and retention strategies if they want to compete effectively with new market entrants.
“The increasing availability of innovative, competitively priced products provided by the new fintechs shows that consumers are willing to shop around and experiment. Brand loyalty is no longer enough. As fintech continues to catch on, traditional financial services companies will have to reassess their view of what consumers are looking for in a digital age and step up their efforts to serve them effectively,” she said.
While fintechs have entered the local market relatively late, a 13 per cent early adopter usage amongst digitally savvy Australian consumers is a trend that cannot be ignored, according to Ms Kimber.