It’s no secret that financial technology (fintech) has become increasingly popular within the past few years. Ernst & Young (EY) recently published an article titled, “Eight Ways Fintech Adoption Remains on the Rise” discussing just how big of an impact fintech is having across different ecosystems.
Here are our biggest takeaways:
Fintech is becoming mainstream
Globally mainstream, that is. According to EY, 64% of global consumers have adopted some type of fintech. While the world seems to be welcoming the future of new financial technologies with open arms, the United States is one of the slowest adopters with a 46% adoption rate. This doesn’t come as a surprise, though, as both consumers and advisors within the U.S. seem to be fighting some sort of internal battle between wanting convenience and maintaining the traditionality of their financial endeavors.
SMEs are more welcoming of these new technologies
Small to medium enterprises (SME) are some of the highest users of new financial technologies across the globe. In an EY survey of key decision makers in SMEs across five countries, one in four respondents stated that they have used some type of service/technology in the fintech realm. This only further proves the notion that financial technology is a prominent component of financial management across both the consumer and commercial markets.
Consumers value convenience
It seems that almost anywhere you look nowadays, regardless of the industry, everybody has some variation of “one-stop shop” incorporated into their tagline or slogan. This is due to the increasing demand for convenience by consumers, including their finances. According to EY, 60% of consumers want to interact with their financial tools through a single platform, whether that be an app or online portal. This isn’t to say, though, that they prefer digital over in-person interaction. In fact, when it comes to customer service, only 73% of global fintech adopters said they would prefer to talk to their financial service providers in-person than via an online platform/channel.
The fact of the matter is that fintech adoption is increasing at a rate of 100% year over year. With the rising trust from consumers and businesses alike, it’s imperative that fintech adoption becomes a standard for those working in the wealth management industry. Because when the capabilities and opportunities of both technology and advisors are married, a better customer experience is delivered.
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