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EY FinTech Adoption Index 2017 - Canadian findings

The rapid emergence of FinTech

Unleashing the potential of FinTech in banking
Rapid emergence and evolution. Mass consumer adoption and significant market traction. Strong prospects for future growth. Those few ideas summarize the bright and brief history of FinTechs, as confirmed by the latest EY FinTech Adoption Index. Our most recent survey of more than 22,000 digitally active consumers worldwide highlights the rapid growth in FinTech adoption rate and the variations among 20 different mature and developing markets. There's no doubt FinTech has reached a tipping point.

 

 


FinTech usage by market

country wheel graph

Four key consumer themes

Unleashing the potential of FinTech in banking

1. FinTech has achieved early adoption in Canada

FinTech firms have gained significant market traction. In the theory of innovation adoption, FinTech has reached the key milestone of "early adopters" in Canada.

  • Canadian consumers using at least two FinTech services: 18%, in comparison to 33% across the 20 surveyed markets
  • Markets with highest adoption rates: China (69%), India (52%)
  • Evidence of increasing awareness: 78% of Canadian customers are aware of FinTech services compared with 51% in 2015*
* Analysis considers six markets surveyed in 2015 study: Australia, Canada, Hong Kong, Singapore, the US and the UK.
Unleashing the potential of FinTech in banking

2. New services and new players are driving higher adoption rates

Building upon the strength of their compelling value proposition and novel use of technology, FinTech firms continue to expand their offerings, attracting more users based on their simplicity, transparency and personalization. New players, including established technology firms, are entering the market. To clear the path for these new services, policymakers need to clarify the relevant regulatory frameworks.

  • Most popular categories: money transfer and payments (41%), savings and investments (12%), and insurance (10%) are driving higher adoption
  • Category experiencing significant growth: insurance services, which is expected to reach 24% adoption in the Canadian market
Unleashing the potential of FinTech in banking

3. FinTech users prefer using digital channels and technologies to manage their lives

Unsurprisingly, the use of FinTech products and services is higher among younger Canadian consumers. In fact, these digital natives are the most common users. They have a growing need for financial services and are more likely to consider non-traditional providers. In Canada, an overall greater trust in traditional players means that FinTechs in the market have to continuously innovate.

  • Age segments and respective FinTech adoption rates: 25-34 (33%); 18-24 (25%); 35-44 (25%)
  • Canadian FinTech users prefer digital channels to manage all aspects of life: 64%, compared to 33% non-users
  • FinTech "super-users" (adopting 5+ services): over 3% of all Canadian consumers
Unleashing the potential of FinTech in banking

4. FinTech adoption will continue to gain momentum

FinTech adoption is expected to increase in Canada, with a future adoption rate of 34%, compared to 52% globally.

  • 52% global adoption, 34% in Canada, as more non-users embrace FinTech
  • Highest growth expected from money transfer and payments and insurance services

Most used FinTech services

Percentage of digitally active customers who have used each product.
Money transfer
and payments
41%


Online foreign exchange

Pay via cryptocurrency

Overseas remittances

Online digital-only banks without branches

Non-banks to transfer money

Mobile phone payment at checkout

 

 

 

Future adoption rate

51%
Savings and
investments
12%


Peer-to-peer platforms for high-interest investments

Investments in equity crowdfunding platforms and rewards crowdfunding platforms

Online investment advice and investment management

Online stockbroking

Spreadbetting

 

Future adoption rate

22%
Insurance
 
10%


Car insurance using telematics

Insurance premium comparison sites

Activity-based health insurance

 

 

 

 

 

 

Future adoption rate

24%
Financial
planning
5%


Online budgeting and financial planning tools

 

 

 

 

 

 

 

 

 

Future adoption rate

8%
Borrowing
 
3%


Borrowing using peer to peer platforms

Borrowing using on-line short-term loan providers

 

 

 

 

 

 

 

Future adoption rate

14%

FinTech adoption by the numbers

Market and Sell
Average FinTech adoption globally
(compared with 16% in 2015)*
Average FinTech Adoption
Average FinTech adoption in Canada
Aware of FinTech
Canadian consumers aware of FinTech
(compared with 51% in 2015)
Anticipated future adoption rate
Anticipated future adoption rate of FinTech money transfers and payments in Canada
Customers preferring digital channels
Canadian FinTech users prefer digital channels to manage all aspects of life, compared to 33% of non-users
Super users
Consumers are FinTech super-users, regularly using 5 or more FinTech services

*Analysis considers six markets surveyed in 2015 study: Australia, Canada, Hong Kong, Singapore, the US and the UK. All figures have been rounded to the nearest whole percentage for consistency.

About the EY FinTech Adoption Index: Launched in 2015, the EY FinTech Adoption Index is designed to look past the hype and determine actual consumer usage of FinTech services over time. The 2017 study is based on more than 22,000 online interviews of digitally active consumers in 20 markets around the world. Our methodology applies an unweighted averaging of results and uses a “one market, one vote” approach to provide a global, cross-market perspective on themes and trends.

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