1、EY FinTech Adoption Index 2017 The rapid emergence of FinTech EY FinTech Adoption Index 2017 | 3 When EY launched the first global EY FinTech Adoption Index in 2015, FinTech was still in its relative infancy. We found that one in seven digitally active consumers were already FinTech users. In 2017,

2、we find that adoption has risen dramatically to one in three. In 2017, our research includes 20 markets and over 22,000 online interviews, providing a global perspective on FinTech. We now find that on average one in three digitally active consumers use two or more FinTech services. That is signific

3、ant enough for us to suggest that FinTech has reached early mass adoption. A common assumption is that FinTech firms struggle to translate innovation and great customer experience into meaningful numbers. In contrast, our findings reflect considerable consumer appetite for new and innovative financi

4、al service products that take advantage of new consumer technologies, such as mobile and cloud. Nowhere is that more apparent than in the historically underserved emerging markets, with China and India leading FinTech adoption across our study. In this report, we lay out our findings from the EY Fin

5、Tech Adoption Index and also present some fascinating stories of FinTech entrepreneurs who have reached real consumer adoption. We encourage other FinTech firms and traditional financial services companies to consider how these examples, as well as other firms including their own, are driving change

6、 and innovation within financial services. We have observed a host of new FinTech firms, business models and consumer propositions entering the market, including entrepreneurial start-ups, major technology firms, and branchless mobile banking services. We can also see the seeds of the next evolution

7、 of financial services, with further FinTech adoption facilitated by the move toward data sharing, open Application Programming Interfaces (APIs), biometrics, and the application of artificial intelligence and robotics. We believe that the financial services industry has considerable unexplored pote

8、ntial, and are excited to continue monitoring how FinTech and financial services evolve in future years. In the meantime, we hope this report provides a holistic view of FinTech adoption around the world, as well as provide insight and inspiration to FinTechs, financial services firms and policymake

9、rs alike. Foreword Imran Gulamhuseinwala OBE EY Global FinTech users are also more likely to be users of non- FinTech platforms, such as on-demand services and the sharing economy. 2. New services and new players are driving higher adoption Among our five categories, money transfer and payments are

10、driving FinTech adoption. 50% of our digitally active consumers have used this type of service in the last six months, which suggests this category has reached “late majority” adoption. Insurance services have also seen significant increases, overtaking both savings and investments, and borrowing, w

11、ith 24% adoption. One potential influence may be attributed to the greater activity from regulators and policymakers in some markets that support FinTech, such as in money transfer and payments, as well as insurance services. These groups are addressing new business models and technologies that were

12、 previously undefined by the current regulatory framework, setting up initiatives, such as steering groups and sandboxes, updating licensing regulations, and introducing infrastructure changes that facilitate open APIs. 4. FinTech adoption will continue to gain momentum FinTech adoption is expected

13、to increase in all 20 markets, with a segment of current non-FinTech users shifting to FinTech services in growing numbers. On the basis of anticipated future use, FinTech adoption could increase to an average of 52% globally, with the highest intended use among consumers in South Africa, Mexico and

14、 Singapore. Borrowing and financial planning are anticipated to more than double in usage. Money transfer and payments services remain the most widely used at 50%, with anticipated future use by 65% of consumers. FinTech users are also becoming more diverse in their use of services, with 13% of thos

15、e surveyed becoming super-users who regularly use five or more FinTech services. Four key consumer themes emerged from the 2017 EY FinTech Adoption Index 3 For further details, see Everett M. Rogers, Diffusion of Innovations, (Free Press, 5th edition, 17 November 2003). 8 | EY FinTech Adoption Index

16、 2017 Notes: The figures show FinTech users as a percentage of the digitally active population. All figures are shown in percentages. *Belgium and Luxembourg *Hong Kong SAR of China Figure 1: FinTech adoption rates across our 20 markets EY FinTech Adoption Index 2017 | 9 Reaching 33% adoption: how F

17、inTech firms achieve traction In addition to the macroconsumer trends observed in the EY FinTech Adoption Index, we also review from a business perspective how FinTech firms achieve consumer traction in ways that differ from traditional firms. FinTech firms build traction into the heart of their bus

18、iness model by focusing on the customer proposition and enabling technologies. A combination of traditional and non-traditional tools drives growth until they are able to reach sustainability. Figure 2: Strategies to achieve traction Business models that drive adoptionTools and technologies to accel

19、erate traction Revolutionize the economics of a market Offering a previously paid-for service free of charge Offer a significantly cheaper service Build virality or “word of mouth” referrals Make customers advocates for the business Distribute across an existing customer base Solve a problem for ano

20、ther business Collaborate with businesses that have an existing customer base Establish a strong brand identity Ensure customers subscribe to and identify with the brand, mission or ethos Create something new and compelling Provide a new type of service Focused marketing activity Target marketing at

21、 customer segments and through tailored selection of channels FinTech in perspective FinTech firms are establishing themselves not only as significant players in the industry, but also as the benchmark for financial services. Their new propositions are increasingly attractive to consumers who are un

22、derserved by existing financial services providers, and their use will only rise as FinTech awareness grows, consumer concerns fall, and technological advancements, such as open APIs, reduce switching costs. Established financial services firms face both “unbundling” and “rebundling” of their propos

23、itions resulting in disruption of traditional customer relationships. However, this also creates opportunities for start-ups and established firms to collaborate. Investment and regulatory support will continue to play a role in stabilizing the development of the FinTech industry, which will benefit

24、 consumers. 10 | EY FinTech Adoption Index 2017 We asked the leaders of FinTech firms from different regions, and at different levels of maturity, for their perspectives on customer traction. “ Even though its easier said than done, the best thing to do is to build a product that resonates clearly w

25、ith peoples needs. Once you have that, your early adopters will recommend you to their friends and, in todays environment, you can quickly get viral growth through word of mouth.” George Lucas, Founder and CEO, Acorns Australia “ We believe in the power of tech. By using it well and by working close

26、ly with our financial and strategic partners around the world, we aim to bring equal access to financial services to over two billion people in 10 years.” Eric Jing, CEO, Ant Financial “ For propositions to tip into the mass market, they need to be incredibly simple; even an elevator pitch is too co

27、mplex. Ideally, propositions should be under 10 words. ClearScores proposition is, Your credit report and score, for free, forever.” Justin Basini, Founder and CEO, ClearScore “ Achieving customer adoption means different things at different stages. From the beginning, it pays to be focused to have

28、one thing that hits the pain point of customers and attracts them to the platform. For Lufax, peer-to-peer (P2P) was that star product, and Ping An was crucial to gaining customer comfort and traction at the beginning.” Gregory Gibb, Founder and CEO, Lufax “ We built Nubank despite all conventional

29、wisdom, in the midst of Brazils worst economic crisis. Today, more than nine million people have applied for Nubank. These results should motivate every entrepreneur to keep challenging the status quo.” David Vlez, Founder and CEO, Nubank “ PayPal is uniquely positioned to solve issues that others c

30、annot, particularly as consumers and merchants increasingly connect over mobile and social media. We lead the way toward an overwhelmingly mobile future.” Bill Ready, COO, PayPal “ Unlike traditional broking firms, we keep our operations online and pass benefits back to our clients as lower costs. T

31、his edge of being a tech firm has helped us scale our business to one of the largest brokerage firms in India in terms of retail trading turnover.” Nithin Kamath, Founder and CEO, Zerodha EY FinTech Adoption Index 2017 | 11 2. FinTech adoption: the numbers Rogers Innovation Adoption Curve In Diffusi

32、on of Innovations,4 Rogers argues that innovation spreads across five ordered groups within a population: Brave pioneers Individuals who seek out the newest ideas Early adopters Individuals who act as opinion leaders to the wider population Early majority Individuals who accept change more quickly t

33、han the average Late majority Individuals who are more skeptical than the average, but are willing to use an innovation if many have adopted it Laggards Individuals who are reluctant to give up traditional ways until absolutely necessary 4 Everett M. Rogers, Diffusion of Innovations (Free Press, 5th

34、 edition, 2003). “ Adoption: accepting or starting to use something new.” Cambridge Dictionary 12 | EY FinTech Adoption Index 2017 Early adopters (2.5%16%) Global average (33%) Late majority (50%84%) Belgium and Luxembourg Japan Canada Singapore Ireland Netherlands France Switzerland South Korea Hon

35、g Kong US South Africa Germany Mexico Spain Australia Brazil UK India China Early majority (16%50%) 13 14 18 23 26 2727 30 3232 33 3535 36 3737 40 42 52 69 Notes: The figures here show global adoption rates for 2017, including adoption rates for each of the 20 markets, plotted against stages of the

36、innovation adoption curve. All figures are shown in percentages. Figure 3: Progress of FinTech adoption globally and across 20 markets 1. FinTech has achieved initial mass adoption in most markets What do our adoption figures indicate? We have adapted Rogers theory as a framework to contextualize an

37、d benchmark FinTech adoption. Observation: FinTech firms are gaining a presence globally. Globally, FinTech users have moved from early adopters in our 2015 study to early majority in 2017, with 33% of the surveyed population indicating they are regular users of FinTech services. This indicates how

38、much FinTech has grown and become accepted among consumers. At the market level, FinTech has been adopted by an early majority of consumers in 16 out of our 20 markets, moving beyond the segments of the population that seek out and test innovations. Notably, FinTech has reached the late majority in

39、two markets, indicating that more than half the population are currently regular users of FinTech services. As figure 3 indicates, FinTech firms are collectively gaining significant market presence, at levels that can influence industry standards and consumer expectations. Observation: Emerging mark

40、ets are driving adoption. The five emerging markets in the 2017 report indicate that consumer FinTech adoption rates are well above the global average of 33%. Further, average adoption was 46% among these five markets, compared with an average adoption rate of 28% for the 15 remaining markets and th

41、e global average. However, our study focuses only on the digitally active population and internet penetration rates are lower within these five markets. The primary factor in such high adoption is that FinTech firms excel at tapping into these tech-literate but financially underserved populations. O

42、ur five emerging markets are characterized by having growing economies and a rapidly expanding middle class, but without traditional financial infrastructure to support demand. Relatively high proportions of the populations are underserved by existing financial services providers, while falling pric

43、es for smartphones and broadband services have increased the digitally active population that FinTechs target. EY FinTech Adoption Index 2017 | 13 Observation: Adoption increases in line with growing awareness of FinTech. Figure 4 compares FinTech adoption rates from 2015 and 2017 for the six origin

44、al markets. The UK and Australia realized the largest increase in the number of consumers adopting FinTech, while the US and Canada also experienced healthy growth. FinTech adoption has increased more modestly in markets, such as Hong Kong and Singapore; both markets that had already achieved signif

45、icant adoption in 2015. This demonstrates a relationship between FinTech adoption and awareness of FinTech. Figure 5 shows that lack of awareness of FinTech in all six markets has dropped since 2015. Respondents who cited this factor as a barrier to using FinTech services have declined from 38% to 1

46、6%, indicating 84% of the surveyed population in these six markets are now aware of FinTech. The average across all 20 markets is 86%. Moreover, a preference for traditional financial services providers has become a more prominent reason for not using FinTech. Notably, Hong Kong had the highest adop

47、tion rate and lowest lack of awareness in 2015. In 2017, there is only a 3% increase in FinTech adoption and a 6% decrease in lack of awareness, while preference for traditional providers has surpassed lack of awareness as the primary barrier to FinTech in that market. In addition, Hong Kong has a s

48、trong and active FinTech payments sector, but has yet to show significant growth in other FinTech categories. 49 22 40 15 42 15 44 19 23 10 29 18 16 12 11 12 22 13 14 5 17 11 34 11 Notes: The figures show the percentage of all respondents who cited lack of awareness, versus a preference for traditio

49、nal financial services providers, as barriers to using FinTech, by market. Survey respondents were allowed to choose multiple reasons for not using FinTech. Question was asked only to respondents who had used no FinTech services in the last six months, however, the analysis is re-indexed to show as a percentage of all survey respondents in each market. 2017 2015 Figure 5: Comparison of two selected barriers to adoption in six markets between 2015 and 2017 AustraliaCanadaHong KongSingaporeUKUS Notes: The fig