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Insights from the
EY FinTech Adoption Index and EY FinTech Australia Census
Erik Heller
EY Sweeney
May 2018
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FinTech Adoption Index 2017
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EY’s Global Fintech Adoption Index
“Adoption: accepting or starting to use something new.”
Cambridge, Dictionary
• 2017 global online survey of over 22,000 consumers
• 20 markets across Americas, Europe, Africa and APAC
• 8 markets also covered in 2015
• Next edition scheduled for late 2018/early 2019
RESEARCH METHOD• Comprehensive research to highlight where FinTech is
gaining traction
• Identifies 17 different types of FinTech services in five broad categories
• FinTech usage/adoption defined as having used two or more FinTech services in the last six months
Money transfer and payments
InsuranceSavings and investments
Financial planning
Borrowing
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Fintech has achieved initial mass adoption in most markets
Progress of FinTech adoption globally and across 20 markets
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FinTech adoption more than doubled in key markets
Comparison of FinTech adoption in six markets between 2015 and 2017
2015 adoption 2017 adoption
37
1318
8
3229
15
23
14
42
17
33
Australia Canada Hong Kong Singapore UK US
Australia has one of the fastest
growing FinTechadoption rates.
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New services and new players are driving higher adoption
Comparison of FinTech categories ranked by adoption rate in 2015 and 2017
2015
1 Money transfer and payments: 18%
2 Savings and investments: 17%
3 Financial planning: 8%
4 Insurance: 8%
5 Borrowing: 6%
2017
1 Money transfer and payments: 50%
2 Insurance: 24%
3 Savings and investments: 20%
4 Financial planning: 10%
5 Borrowing: 10%
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FinTech adoption across age brackets
Age (years)
37%
48%
41%
30%
22%
15%
9%
18-24 25-34 35-44 45-54 55-64 65-74 75 andabove
Views on digital financial services, FinTech users
versus non-users (%)
64
54 54
38
29
34
FinTech users Non-users
I prefer to manage as many aspects of my life
via digital channels as
possible
I mainly use my smartphone to access financial
services products rather than a
desktop computer or laptop
I am generally willing to take the most convenient financial services
product even when it is not the
cheapest
FinTech users prefer digital solutions to manage their lives
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1513
812
29
15 1417
3337
13
40
18
69
27
3532
52
26
14
36
2723
3532
37
30
42
33
52
43
32
69
34
77
40
47
52
80
52
23
71
36
56
71
5356
44
53
46
2015 2017 Future
FinTech adoption will continue to gain momentum
Comparison of past, current and anticipated future use of FinTech, by market (%)
Average Australia Belgium and Luxem-
bourg
Brazil Canada China France Germany Hong Kong
India Ireland Japan Mexico Nether-lands
Singapore South Africa
South Korea
Spain Switzerland UK US
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Comparison of current and anticipated future use of FinTech, by FinTech category
2017 use Future use
50%
10%
20%
10%
24%
65%
18%
33%
20%
39%
Money transfer and payments
Financial planningSavings and investments
Borrowing Insurance
Accelerating adoption in smaller categories will fuel growth
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FinTech adoption is expected to surpass 50%
Analysis of current and future use of FinTech
Majority of non-regular
FinTech users have begun the
journey to FinTech adoption.
Analysis on future intended
use suggests adoption will
increase to 52%.
-4
1
33
Current FinTech users
Estimated lapsed users
Current users of one service
Current non-users
Anticipated future users
11
12 52
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Comparison of two selected barriers to adoption in six markets between 2015 and 2017
Was not aware they existed
Prefer to use a traditional financialservices provider
Was not aware they existed
Prefer to use a traditionalfinancial services provider
Was not aware they existed
Prefer to use a traditionalfinancial services provider
Was not aware they existed
Prefer to use a traditionalfinancial services provider
Was not aware they existed
Prefer to use a traditionalfinancial services provider
Was not aware they existed
Prefer to use a traditional financialservices provider
2015 2017
Australia Canada Hong Kong Singapore UK US
44
23
49
29
16
11
42
17
34
14
40
2219
10
22
18
12 1215
11 11
5
1513
Barriers to increased adoption are evaporating quickly
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FinTech Australia Census
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“In 2016, FinTech Australia had identified some 250 FinTech
companies in Australia. We now estimate there’s close to 600. From
Hobart to Townsville, Perth to Gold Coast – great FinTech companies
emerging everywhere.”
Danielle Szetho, CEO FinTech Australia
OTHER EY FINTECH
REPORTS/ RESOURCES
QUANTITATIVE RESEARCH:
166 ONLINE SURVEYS
QUALITATIVE RESEARCH:
10 IN-DEPTH INTERVIEWS
VOX-POPS:
16 INTERVIEWS
RESEARCH APPROACH• Collaboration of FinTech Australia and EY
• FinTech Australia Census: comprehensive and focussed thought leadership research…
- Help define the industry
- Identify the challenges
- Cast a light on way forward
FinTech Australia Census
Wealth and investment
Lending
Data analytics / Big Data
Payments, wallets and supply chain
Asset management and trading
Regtech
Business tools
Marketplace-style / peer-to-peer solution
Identity, security and privacy
Blockchain/distributed ledger solution
Insurance/insurtech
Accelerator/venture capital
Crowdfunding/fractionalised investing
Challenger/neo bank
Digital/Crypto currencies /exchanges
Other
Retail consumers
Sophisticated investors
SME and/or other startups
Corporate
Banks and other FSIs
Government
Other
Business based
End customers (multiple response – excl. don’t know)
Age of company (excl. didn’t answer)
Company stage
54%
19%
1%
9%
12%
4%
0%
2%
NSW
VIC
TAS
SA
NT
QLD
WA
Overseas
Biggest competitors (excl. none)
45%
22%
35%
33%
43%
14%
15%
55%Net B2C
71%
Net B2B
Number of employees (median)
Type of fintech (multiple response)
5Full-time
2Part-time
30%
23%
18%
16%
11%
10%
10%
10%
6%
5%
5%
5%
5%
4%
4%
9%
36%Incumbents
29%Other fintechs
in Australia with a similar
offering
27%Overseas
fintechs with a similar offering
7%Other
20172016
57% 71%
43% 29%
Pre-revenue
Post-revenue
20172016
20% 31%
44%48%
36% 21%1 year or less
2 to 3 years
> 3 years
Net 2 yrs or more
79%
Fast facts: Sector profile 2017
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Drivers of FinTech success
TALENT
POLICY
• Tax incentives
• Open banking
• New payments platform
• Licencing
• Regulatory sand boxes
Lack of experience/skillin Australia
Yes52%
No48%
ENVIRONMENT
DEMAND
• FinTech adoption continues to grow
• A more diverse profile
• Solution-centric
• Cost of acquisition and retention
CAPITAL
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International Local
Outlook and optimism
COMPETITION
• 63% feel Australian FinTechs are internationally competitive
• 45% feel they will be able to win against international competitors
• Lack of quality FinTechs in Australia…?
34% agree
38% disagree
ADVANTAGE AUSTRALIA
Regulatory environment
Advanced financial services industry
Access to Asia
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A global market
“I am delighted to see the increase in Australian fintech firms
that are setting global goals for their businesses. More than half
are now focused on expanding overseas in the next year.
Supporting these creative start-ups is a major focus of Austrade,
especially through our ‘Landing Pads’ program in five global
innovation hubs, which is already propelling many clever
Australian businesses to new heights.”
Stephanie Fahey, CEO Austrade
“The disruption of financial services is most likely to come
from digital giants from developing markets such as China
or even those technology giants from the US who are
extending their platform dominance into financial services.
In the face of this, many local fintech start-ups are likely to
be acquired by either global players or local incumbents and
should be preparing for that possibility by keeping in close
contact with potential acquirers.”
Simon Cant, Chair FinTech Australia
… of AseanFinTechs plan to expand beyond home or current markets
INTERNATIONAL EXPANSION PLANS
2016
38%2017
54%
87%
?
MELBOURNE
8 Exhibition StMelbourne VIC 3000 Australia GPO Box 67 Melbourne VIC 3001 T 61 3 9288 8651
SYDNEY
200 George StSydney NSW 2000 AustraliaGPO Box 2646 Sydney NSW 2001T 61 2 9248 5060
PERTH
11 Mounts Bay Rd Perth WA 6000 AustraliaGPO Box M939 Perth WA 6843T 61 8 9429 2222
CANBERRA
121 Marcus Clarke St Canberra ACT 2601 AustraliaGPO Box 281 Canberra ACT 2601T 61 2 6267 3888
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