Financial Technology, or FinTech, is an emerging industry that uses technology to improve and automate the delivery and use of financial services. FinTech companies are establishing themselves not only as important players in the industry, but also as the competitive benchmark for financial services. This is most evident in the recent FinTech consumer confidence statistics.
Going Global by Default
FinTech’s emergence as a global phenomenon has been expedited by investments and tremendous growth, driven by three popular investment categories: payments, lending/crowdfunding, and data and analytics. The U.S. represents an average FinTech adoption rate, with 33% of the U.S. online population using Fintech. China represents the largest FinTech adoption rate, at 69%, indicating the most significant FinTech consumer confidence marks.
Fintech’s consumer confidence statistics also show that offerings are growing in appeal among consumers who are underserved by their traditional financial services providers. Notably, 73% of U.S. Millennials would prefer to get their banking services from a non-financial services company. FinTech consumer confidence statistics reveal that FinTech use will only rise as awareness grows, consumer concerns fall, and technological advancements reduce costs of switching.
FinTech Consumer Confidence Will Continue to Rise
Another indicator that FinTech consumer confidence is rising? The growing majority of (68%) are comfortable with conducting financial transactions online, and close to half (47%) anticipate better security with new technology developments. Consumers, however, still have a hard time identifying what features they want from their financial services providers (chart below), indicating they could benefit from more education on new FinTech offerings available to them.
Which of the Following Features Do You Wish Your Financial Services Company Offered?
FinTech has reached mass adoption, and FinTech firms need to innovate to stay at the leading edge, creating meaningful consumer experiences. Recognizing the enormous potential, businesses of all sizes, from startups to the Fortune 500, are venturing into the FinTech industry. The competition will drive the industry forward, as companies innovate— think branchless mobile banking, data sharing, AI, and more—to stay ahead.