According to Ernst & Young, Russia is third in terms of the popularity of fintech services with 82% of the population using such services. China and India are the only two countries ahead of Russia with 87% each.
The top five also includes South Africa (82%) and Colombia (76%), followed by Peru (75%), the Netherlands (73%), Mexico (72%), Ireland (71%) and the United Kingdom (71%). Japan got the last, 27 th place. Only 34% of the population there use fintech services. The study also showed that the global introduction of fintech in 2019 reached 64%. Although, only two years ago, Ernst & Young experts predicted that the figure would be 52%.
Money transfers and payments
The Ernst & Young analysts divided all fintech services into five categories: money transfers and payments, budgeting and financial planning, savings and investments, loans, and insurance.
Respondents were asked whether they know about the existence of such services and whether they use them. According to the results, consumer awareness of all services is high, but they are most familiar with money transfers and payment services (used by three out of four respondents).
Consumer awareness of fintech services
According to the experts, a high level of awareness of fintech services in Russia formed due to foreign sanctions imposed on major banks. This stimulated the demand for solutions from alternative payment service providers.
At the same time, 4% of all respondents have never heard of money transfers and payment services, 29% were not familiar with budgeting and financial planning, 22% did not know about savings and investments, 24% — about loans, 14% — about insurance.
According to the results of the study, concern about the security of personal data does not prevent consumers from using financial services through online services and mobile applications.
71% of users are worried about personal data when communicating with companies in the financial sector online but 60% would prefer to view all their financial products in one place, for example, in an app or online. Consumers in Sweden, Germany, Belgium, and the Netherlands are the least concerned about the security of personal data, which can be explained by strict data protection rules in these countries.
Price and accessibility
Ernst & Young believes that one of the important signs of the maturity of the fintech industry is the change in consumer priorities when choosing service providers. In 2017, the simplicity of opening an account was the most important for 30% of consumers. Only 13% looked at commissions and prices first.
According to the results of the study, the situation has changed. In 2019, prices are most important for 27% of respondents, while 20% value the simplicity of opening an account above all.
Each year more consumers choose fintech startups instead of banks due to more attractive prices and commissions, simplicity, access to various innovative products, higher quality of service.
However, the lack of information and understanding is still the main reason why consumers choose traditional banks instead of fintech services.
Another reason why consumers prefer banks to fintech services is trust. Traditional financial institutions are trusted more than new fintech companies. This factor is a major obstacle for the development of fintech in Chile, France, and Japan.