The rapid increase of FinTech in Ireland, and in particular within financial services organisations, has attracted significant attention from both industry observers and the media. We launched the first EY FinTech Adoption Index in 2015 to cut through the hype and understand whether digitally active consumers were actually using FinTech services on a regular basis.
The answer at the time was yes: 16% of our surveyed consumers had used two or more FinTech services in the prior six months, with adoption potentially doubling in the near future. The 2017 study reveals that this has happened in just 18 months. Findings from the 2017 study show that FinTech firms have reached a tipping point, and are poised for mainstream adoption across our 20 markets.
Building upon the strength of their core characteristics of focusing on the customer proposition and leveraging technology in novel ways, FinTech firms are gaining traction in the market. In the process, they are blurring boundaries between traditional financial products and needs-based or lifestyle propositions, as well as defining new standards within financial services. FinTech firms share two core characteristics: a laser-like focus on the customer proposition and a willingness to apply technology in novel ways.
FinTech in Ireland
The report contained some fascinating figures from an Irish perspective:
The figures show that adoption rates for FinTech products in Ireland stand at 26%, which puts us on par with the Netherlands and France at 27% and Singapore at 23%. This compares with the global average adoption rate of 33%. In Ireland, the figure of 26% for FinTech adoption was based on 2015 market findings, but strikingly, a 2017 survey on anticipated future use found that this figure is expected to double to 52%.
Unsurprisingly, the most prevalent future users are Millennials, with the 18-35 age bracket turn intuitively to FinTech products.
With this in mind, it’s essential that Irish financial services institutions who wish to win and retain customers and clients must act now, meeting new demands with a robust level of time, energy and resources.