Four key consumer themes emerged from the 2017 EY FinTech Adoption Index
FinTech has achieved initial mass adoption in most markets. The average percentage of digitally active consumers using FinTech services reached 33% across the 20 markets. 84% of customers are aware of FinTech services in 2017 compared with 62% in 2015.
New services and new players are driving higher 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.
FinTech users prefer using digital channels and technologies to manage their lives. Unsurprisingly, use of the products and services is higher among younger consumers. Those with the highest use, 25- to 34-year-old consumers, are not only tech-savvy “digital natives,” but are also at the age where they have a greater need for financial services.
FinTech adoption will continue to gain momentum. On the basis of anticipated future use, the adoption could increase to an average of 52% globally, with the highest intended use among consumers in South Africa, Mexico and Singapore.
Rogers’ Innovation Adoption Curve In Diffusion of Innovations
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 than 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
Tools and technologies for accelerating market advantage
1. Build virality or “word of mouth” referrals
Make customers advocates for the business
endorsements from opinion leaders and community champions are vital.
2. Establish a strong brand identity
This is a popular strategy for FinTech firms focusing on the millennial market, who are attracted to businesses with “purpose” beyond profit, and is facilitated by mobile technology.
3. Focused marketing activity
Target marketing at customer segments and through tailored selection of channels. Core to this strategy is market research, coupled with marketing approaches, such as traditional and digital advertising placements, search engine optimization, blogs and social media.
EY FinTech Adoption Index 2017, link