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Aussies Embracing Fintech Products

More and more Aussies are embracing digitalization when it comes to seeking financial help, turning to their financial advice website or financial technology app of choice. Professional services firm Ernst & Young wanted to see what the numbers were, and released the data.

The firm recently released the EY Global FinTech Adoption Index 2019, which noted that the AU is now only slightly behind the world’s consumer uptake average, which sits at 64%.

Australia’s fintech adoption rate went up from 37%, recorded back in 2017.

Meanwhile, SME fintech adoption sits at 25%, with China taking lead at 61%, with the US at a distant second, at 23%.

Ernst & Young AU’s Financial Technology Advisor, Meredith Angwin, explained why Australia’s adoption rate dropped below the global average, in spite of starting at a higher level than most Asian countries. She says that, even though the AU’s incumbent financial institutions, and the industry at large, have been openly embracing fintech, what they offer is behind what other markets have, with many a financial advice website feeling a bit short on service offerings, and this, she notes, is likely a major factor in the country’s overall ranking.

Angwin, however, noted that, as more up and coming fintech companies move into the Australian market, and major players in the financial industry step up their developments in order to keep up with the competition, as well as the changing demands of their customers.

The EY Global FinTech Adoption Index is based on an online survey of 27,000 digitally active consumers from 27 countries across the world, as well as surveying 1,000 SMEs that utilize fintech services in China, Mexico, South Africa, the US, and the UK.

According to EY, user adoption has doubled in the Asia-Pacific region, with some key markets even seeing their adoption rate triple within the past 2 years, like South Korea, Hong Kong, and Singapore, which all have their adoption rate sitting at 67%.

EY note that customer’s expectations have changed, which has resulted in massive shifts in the financial services industry, explaining that more traditional financiers are disrupting their own propositions by providing customers with digitally accessible and technologically advanced services.

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