March 7, 2018 07:00
Photo : Freepik
The insurance is now the second most used by followers of fintech in the world, reveals the consulting firm EY in its FinTech Adoption Index.
Insurance, both for life insurance as life insurance, held in 2015 on the fourth rank. EY argues that the emergence of new players, such as sites of comparison of bonuses and technologies of telematics, explains this increase.
The consulting firm establishes its index on the responses of users of fintechs from 20 countries. EY considers that a regular user of fintech is an individual who has hired the services of two fintechs or more in the last six months.
The transfer and payment of money by head
By 2017, 24 % of the 22 000 respondents users of fintechs index EY are said to consume the services in insurance. They were 8 % in 2015.
The first position remains in the hands of companies offering money transfer services and payment. This is 50 % of the respondents who mention having recourse to one or more fintechs in this sector, while this rate stood at 18 % in 2015. It is thanks to the banks exclusively online and new service of mobile payment that this sector has seen an increase of users in two years.
Furthermore, laws and regulators have assisted in the development and the rise of fintechs, note-EY. In some markets, new laws have created opportunities for new firms and services of fintech. One can think of various european directives, which have allowed the emergence of the concept of Open Banking, where fintechs use interfaces application programming for creating applications around those of financial institutions.
In India, the launch of new licenses for «banks of payment» has resulted in greater competition between financial institutions. In China, regulations are open to give the free-field to both the fintechs that companies of non-financial services to innovate on the ways in which financial products are offered.
18 % of Canadians are adopting the fintechs
The population of China is one of the more adopted four of them, or the money transfers and payment (83 %), financial planning (22 %), savings and investment (58 %), and loans (46 %). With 47 % of its population, it is India which has further adopted the services of fintechs in insurance, followed by the United Kingdom to 43 %.
In Canada, the adoption rate of fintechs by the population is at 18 %, reveals the study of EY, which represents the 17th position out of 20 countries. The study reveals that the overall average is 33 %.
Overall, the users of fintech are passed «first time users» to «most early» in 16 countries between 2015 and 2017, while the adoption rate has reached the «vast majority» in the markets of China and India, where more than half of the population is made up of regular users of fintech, with rates of respectively 69 % and 52 %.
Correlation rate of adoption-knowledge
EY reported that for the five markets with the highest rates of adoption, the average is 46 %, while for the 15 remaining markets, it is 28 %.
«The main factor that explained these high adoption rates is that fintechs are excellent in the fact to penetrate markets that are strong in technology, but underserved in terms of financial services, argue the authors of the report. The five emerging markets are characterized as having growing economies and a middle class that is rapidly expanding, but which do not have a financial infrastructure traditional to meet the demand. A relatively high proportion of the population is poorly served by suppliers of financial services are existing, while the fall in the price of smart phones and telecommunications services has grown, the population of active digital that fintechs are intended. «
EY establishes a correlation between the increase in the global adoption rates of fintechs and the growth of their knowledge by the population. In the six markets that have experienced a significant increase in the adoption rate, the report demonstrates that the lack of knowledge of fintechs dropped. In 2015 in Canada, the adoption rate stood at 8 %, and the percentage of lack of knowledge of fintechs in the same year was 49 %. For 2017, these data are respectively 18 % and 22 %.
The adoption rate of fintechs will continue to climb
The main reason why some people say that they do not use the fintechs is that they are not aware of their existence, although the number of them has dropped 38 % in 2015 to 16% in 2017. Now, 84 % of the population in the markets surveyed are aware of the fintechs. It is to be noted that the survey of EY has been conducted online.
The second reason, which, unlike the first, is on the rise, is that respondents prefer to use the services of a traditional financial institution.
EY concludes that the adoption rate of fintechs will continue to increase in the future, and that the feeling towards those is » incredibly positive «, while all the markets report a future use increased. Overall, the rate of adoption of the next few years will reach 52 %. It is in South Africa, Mexico and Singapore we will see the largest growth, according to the consulting firm, and the rate is projected to increase in all markets. In Canada, it is expected that the adoption rate is 34% in the future.
In addition, it is expected that 88% of the population across the 20 markets surveyed adopt the services of fintechs money transfer and online payment. This figure is 55 % for the insurance, thereby retaining the first and second place in the ranking of the categories of the most commonly used services.
In addition, EY note that a cohort of super-users emerge, while 13 % of people are considered as users of fintechs use the services of five or more companies. We found the 3 % that use 10 or more.