Global FinTech
Adoption Index
2019
As FinTech becomes the norm,
you need to stand out from the
crowd

2

Global FinTech Adoption Index 2019

Foreword
FinTech has evolved in significant ways since we published our first global EY FinTech
Adoption Index in 2015. That year we observed that FinTech, while nascent, was“clearly more than just hype.” Our next report, in 2017, found that the industry
had grown rapidly and had “achieved initial mass adoption.”
For this year’s survey, we interviewed more than 27,000
consumers in 27 markets. We examined not only how FinTech
has improved and expanded its offerings around the world,
but also how it has spurred change across the entire financial
services industry. FinTech strives to make financial services
more accessible for both consumers and businesses. By
connecting customers to a digital world, FinTech enhances
their experiences, making them efficient, economicaland frictionless.
There are a few key themes in this year’s report:•	No longer just disrupters, FinTech challengers
have grown into sophisticated competitors, with anincreasingly global reach.
•	Many financial incumbents, such as banks and insurers,
offer credible FinTech propositions of their own,
challenging the question of what is a “FinTech?”•	The interactions between challengers, incumbents andplayers from outside the financial industry are forming
FinTech ecosystems that are replacing traditional
bilateral partnerships.

These themes extend beyond the consumer space. Smalland medium-sized enterprises (SMEs) are increasingly using
FinTech services. These businesses constitute a distinct
customer segment, with needs that are different both fromthose of consumers and those of large corporations. Thus,
this report also contains the first SME FinTech Adoption
Index—a survey of 1,000 organizations in five markets.
To help bring to life the findings of our surveys, we conductedinterviews with a wide range of FinTechs, including standalone challengers, financial incumbents and non-financial
services companies. Our 2017 case studies focused on how
FinTech acquired customers and gained market share. This
year, our case studies highlight scaling and expansion—and
how these organizations are working within a new context
for financial services.
We expect some of the newer themes we’ve identified toaccelerate—including the entry of non-financial companies
into the FinTech arena and the spread of ecosystems. The
pace of innovation continues to accelerate, becoming the“new normal” within financial services. We hope this reportcontributes to a deeper understanding of FinTech’s evolving
role, and we look forward to observing how this dynamic
industry develops in the future.

Gary Hwa
EY Global Financial Services
Markets Executive Chair and
EY Asia-Pacific Financial Services
Regional Managing Partner

Global FinTech Adoption Index 20193

Contents
05

Key findings

06

Chapter 1: Consumer FinTech adoption trends

08

Seen everywhere: growing and globalizing

11

Redefining the rules of the game: changing consumer priorities

15

Rise of non-financial services companies and the growth of ecosystems

18

Methodology

20

Chapter 2: SME FinTech adoption trends

22

SMEs worldwide have become significant users of FinTech

26

FinTech challengers are joining SME-provider ecosystems

30

Methodology

32

Chapter 3: From the innovator’s mouth

33

Introducing the FinTechs

36

Questions and answers

42

Contacts

Acknowledgements
Special thanks to our panel of FinTech contributors: Coinbase, Funding Circle, Discovery Group, JD Digits, Juvo,
Goldman Sachs, Grab Financial Group, InstaReM, Moneytree KK and Yolt.

4

Global FinTech Adoption Index 2019

Key findings
We define FinTech as organizations that combine innovative businessmodels and technology to enable, enhance and disrupt financial services.
Consumer survey

64%
Global consumer adoption

Top reason for consumers
to use a FinTech challenger

Attractive
rates and
fees

96%

75%

48%

Global consumers
are aware of at least
one money transfer
and payment
FinTech service

3 out of 4 global
consumers use amoney transfer
and payments
FinTech service

1 out of 2 global
consumers use an
insurance FinTech
service

33%

68%

46%

Consumer adoptersturn to someone
other than theirmain bank first

Consumers would
consider a nonfinancial services
company for
financial services

Consumer adopters
are willing to share
their bank data withother organizations

56%

46%

SMEs use a banking
and payments
FinTech service

SMEs usea financing
FinTech service

SME survey

25%
Global SME adoption

Top reason for SME adopters to use a FinTech challenger

Range of functionality
and features

93%
SME adopters
prefer to find atechnologicalsolution where
possible89%
SME adopters arewilling to sharedata with FinTech
companies

Global FinTech Adoption Index 20195

Chapter 1
Consumer FinTech adoption trends
The FinTech industry has grown up and grownout. No longer made up of only start-ups,
FinTech today is a host of seasoned companies
that offer a broad array of financial services andoperate on a global stage.
Consumers like what they see. Adoption of FinTech services
has moved steadily upward, from 16% in 2015, the year our
first FinTech Adoption Index was published, to 33% in 2017,
to 64% in 2019. Awareness of FinTech, even among nonadopters, is now very high. Worldwide, for example, 96% ofconsumers know of at least one alternative FinTech service
available to help them transfer money and make payments.
Adapting to the rapid evolution of this dynamic andinnovative industry, we conducted online interviews withmore than 27,000 consumers in 27 markets across six
continents, up from 20 markets in 2017. Ten of the 27
markets this year are emerging markets, a recognition of
the leading role many of these emerging markets play in
FinTech adoption.
We asked consumers about their use of 19 FinTech services
across five categories. We continue to define a FinTech
adopter as someone who has used two or more “buckets”
of services, since this indicates a habitual change in behavior
in a way that use of a single service does not. A bucket
consists of a major FinTech service, or two or more related
services, such as online stockbroking and online investment
advice. We discuss our methodology in greater detail at theend of this chapter.

6

Global FinTech Adoption Index 2019

This year for the first time we formally included innovative,
technology-enabled services provided by incumbent financial
institutions, such as banks, insurers, brokers and wealthmanagers, in our definition of FinTech. In prior years, we
focused on services originated by challengers (some ofwhom may have partnered with, or received a substantial
investment from, an incumbent). The inclusion of incumbents
is an acknowledgement that many established players havedeveloped comparable digital offerings that compete withthose offered by FinTech challengers.
We see two main types of FinTech propositions: “disrupted”
and “invented”. A disrupted service is one that hashistorically been offered by incumbents, such as automotive
insurance or foreign exchange trading. FinTech providers use
technology to disrupt these services by offering consumers
a more compelling offering such as enhanced capabilities,
convenience, or lower prices and fees. This profoundlychanges customer expectations in the process, pressuring
incumbents to develop their similar services to staycompetitive and retain market share.
An invented service is one that didn’t exist before but isnow possible by technology and alternative business models,such as peer-to-peer lending and mobile-phone payments.
Some invented services fill niches in the market, andothers have the potential to redefine and transform entire
financial subsectors.

FIGURE 1 | Consumer FinTech adoption across 27 markets

87% China
87% India
82% Russia
82% South Africa
76% Colombia
75% Peru
73% Netherlands
72% Mexico
71% Ireland
71% UK
67% Argentina
67% Hong Kong*
67% Singapore
67% South Korea
66% Chile
64% Brazil
64% Germany
64% Sweden
64% Switzerland
58% Australia
56% Spain
51% Italy
50% Canada
46% USA
42% Bel & Lux**
35% France
34% Japan

80

10

20

70

30

64%
Average
adoption

60

40

50

Notes: The figures show FinTech adopters as a percentage of the digitally active population in each market.
All averages are shown on an unweighted basis.

*Hong Kong SAR of China**Belgium & Luxembourg

Global FinTech Adoption Index 20197

Seen everywhere: growing and globalizing
Finding 1: Global FinTech adoption has reached 64% and has
become mainstream in all the surveyed markets.
FinTech is an industry that has evolved beyond its
early stages to significantly move the dial on customer
expectations. FinTech challengers are looking less likestart-ups and more like professionally managed companies
with broad operational capabilities, a full suite of products
and a global reach. Many of these companies have been
through several rounds of fund-raising, increased their staff,
created corporate departments such as human resources,
accounting and legal, and expanded beyond their homemarkets.
Clearly, FinTech has caught on around the world, entering
the mainstream in all markets studied. Emerging markets areleading the way: in both China and India, the adoption rateis 87%. Close behind are Russia and South Africa, both with
82% adoption. Among developed countries, the Netherlands,
the UK and Ireland lead in adoption, reflecting in part thedevelopment of open banking in Europe.
Indicatively, the adoption rate for the six markets from our
first survey — Australia, Canada, Hong Kong, Singapore,
the UK and the US — has surged from 16% in 2015, to 31%
in 2017, to 60% in 2019. Over the course of five years,
these six markets have become excellent case studies in thematuration and globalization of the industry. In the past 18
months, EY research has shown that more than half of the
top FinTech fundraises in these six markets intend to usesome or all of funds raised for international expansion.

FIGURE 2 | Comparison of FinTech adoption in six markets
from 2015 to 2019
16%

Total
average

13%

Australia

Canada

31%

8%

37%

UK
UnitedStates

58%

18%

50%
29%
32%

Hong Kong

Singapore

60%

15%

67%

23%

67%

14%

17%

2015

42%

33%

71%

46%

2017

2019

Notes: The figures show adoption rates per market for the six markets
for which a comparison is available.

The adoption rate is growing faster than anticipated. The
actual global adoption rate of 64% in 2019 exceeds by
12 points the 52% future adoption rate predicted by our2017 survey.
What’s behind the strong growth in FinTech adoption? One
reason: Incumbents have entered the fray in a big way.
Markets with a sharp rise in adoption from 2017 to 2019,such as Ireland, the Netherlands and Singapore, reflect theavailability of FinTech services offered by banks, insurers,
stock brokers and other incumbent financial institutions.

8

Global FinTech Adoption Index 2019

As in previous years, we grouped FinTech services into fivecategories—money transfer and payments, budgeting andfinancial planning, savings and investment, borrowing andinsurance. Respondents indicated if they were aware ofthese services, and if they use them.

Finding 2: Only 4% of global consumers are not aware ofmoney transfer and payment FinTech services.

Finding 3: Three out of four consumers have used a moneytransfer and payments FinTech service.

Consumer awareness of FinTech services is high across all
categories, but particularly money transfer and payments
services. In both India and Russia, 99.5% of consumers areaware that there are FinTech services available to transfer
money and make payments. The elevated awareness inIndia stems in part from the government’s plan, announced
in 2017, to decrease the amount of paper currency
in circulation. In Russia, the rate of awareness may beconnected to foreign sanctions imposed on major banks,
which has raised the profile of alternative providers forservices such as in remittances and foreign exchange.
Consumers showed surprisingly high levels of awareness for“invented” FinTech services. Globally, 89% of consumers areaware of the existence of in-store mobile phone payment
platforms and 82% are aware of peer-to-peer payment
systems and non-bank money transfers—all services driven
by FinTech. The extensive integration of FinTech payments
propositions with on- and offline retail means consumers arepresented with a range of options upon checkout, further
increasing awareness.

FIGURE 3 | Consumer awareness of FinTech services in each category

4%

29%

22%

24%

14%
14%

Money transfer
and payments

Budgeting andfinancial planning

Savings andinvestments

Borrowing

Insurance

Aware

UnawareNotes: The figures refer to the percentage of respondents who indicate they were not aware and have not heard of any services for that category.

Global FinTech Adoption Index 20199

FIGURE 4 | Comparison of FinTech categories ranked by adoption rate from 2015 to 2019
2017

2019

Money transfer and payments

18%

50%

75%

1

Savings and investments

17%

24%

48%

2

Budgeting and financial planning

8%

20%

34%

3

Insurance

8%

10%

29%

4

Borrowing

6%

10%

27%

5

Rank

2015

Notes: The figures show the average percentage of respondents who reported using one or more FinTech services
in that category. Data for 2015 differs from that originally published in order to align to the 2017 categorization and averaging methodology.

The most commonly used category is money transfer andpayments, with 75% of consumers using at least one service
in this category. In China, where money transfer and payment
apps are pervasive, the adoption rate is 95%. The mostcommonly used services in this category are peer-to-peer
payments, non-bank money transfers, and in-store mobile
payments. Key to their popularity is the ease of setting up an
account, which our 2017 survey found to be the top reason
why consumers were using FinTech. However, the same is nottrue for other services – some markets restrict or regulate
services such as investing in equity crowdfunding platforms
and lending on peer-to-peer platforms, which slows adoption
in those areas.
Insurance continues to show strong adoption as well,with nearly half the consumers globally using a premiumcomparison site, feeding information into an insurancelinked smart device, or buying products such as peer-to-peer
insurance. Here, non-financial services organizations often
facilitate consumer FinTech adoption, such as equipping cars
with “black boxes” to provide data for telematics insurance
or providing apps on mobile phones that consumers canuse to count steps and gain fitness discounts on theirhealth insurance.

10

Global FinTech Adoption Index 2019

High rates of FinTech use for some services do notnecessarily indicate markets are saturated as a whole.
Our survey shows strong growth potential in areas suchas budgeting and financial planning, and savings andinvestment services. Part of the opportunity lies in reachingout to the demographic groups where adoption rates forthese categories are still relatively low, including women,
consumers in rural areas, and consumers without university
degrees. For example, use of savings and investment services
is 27% for women and 40% for men.
Overall, we expect the FinTech industry to continue to be
dynamic and innovative, even in categories such as moneytransfers and payments. Growth will be driven both byincreased market penetration for existing services andthe global spread of less mature propositions currently
only available in a few markets. We expect to see thenew propositions enter more markets in the future,
either by international scaling and expansion or through“harmonization,” whereby similar services are provided ineach region by local FinTechs. We also anticipate that newtechnologies, such as artificial intelligence and blockchain,
will continue to spur the creation of completely new
FinTech services.

Redefining the rules of the game: changing consumer priorities
Finding 4: FinTech adopters prefer online andapp-based financial products despite concerns about
personal data security.
Digital innovation is disrupting and reshaping financial
services at a rapid pace, and incumbents and challengers
alike need to be attuned to the evolving expectations of
their customers. Challengers have built themselves using adesign-first approach and agile work processes. By keeping
a technology-forward mindset, they are able to offer
FinTech services that are at once personalized, accessible,
transparent, frictionless and cost-effective. As our findings
showed in 2017, these characteristics are sufficiently
appealing to consumers in significant numbers to create
a truly disruptive threat to incumbent banks, insurers andwealth managers.
The incumbents that are most responsive to this competitive
threat are those that disrupt their own propositions and offer
comparable FinTech services, either through partnerships,
acquisitions or in-house development. In recent years,
incumbents have brought forth their FinTech versions of
disrupted services in areas such as online foreign exchange,
online investment advice and management, and digital-only
branchless banking.
In effect, FinTech has redefined the rules of the game infinancial services. What was considered new and disruptive
in 2015 has since become a prerequisite for all players. Withso many participants now offering similar services, eachcompany must strive to differentiate itself to attract andretain customers, whether by brand, price or execution.
For a company to stand out, it helps to have a keen
appreciation of what FinTech adopters want—and what
concerns they have. While adopters are much more willingthan non-adopters to favor an online tool or an app thatallows them to view all their financial products in one place,they are more worried than non-adopters about the securityof their personal data. Security concerns are less pronounced
in Sweden, Germany, Belgium and the Netherlands, perhaps
due to strong data protection regulations in those markets.
Overall, despite their security concerns, adopters are
comfortable with online aggregator sites and all-digital,
branchless financial services.
FIGURE 5 | Analysis of views on personal risk managementand digital financial services, FinTech adoptersversus non-adopters
I generally read the terms andconditions when I sign up for a
new financial product

65%
52%

I worry about the security of
my personal data when dealing
with companies online
I would be comfortable to use
a digital, branchless financial
services provider
I would prefer to view all myfinancial products in one placethrough an online or app-based tool
Adopters

71%
65%

47%
18%

60%
38%

Non-adopters

Notes: The figures show the percentage of respondents who either‘agree’ or ‘strongly agree’ with statements relating to their attitudes tofinancial and digital services, by FinTech adopters and non-adopters.

However, that level of comfort does not extend to using social
media to communicate with providers. Only 27% of adopterswould prefer to chat with their bank via social media rather
than through the bank’s own app or traditional channels.
That figure is higher (32%) among adopters between theages of 25 and 34; prior EY research has found that 68% ofyoung investors use social media for all purchases, whether inseeking information or validating their choices after the fact
(see EY, “The new norm: FinTech and the digitally enabled
wealth customer”).

Global FinTech Adoption Index 201911

Finding 5: Attractive rates and fees has overtaken the easeof setting up an account as the primary reason adopters cite
for choosing a FinTech challenger.
One telling sign of the FinTech industry’s maturation isthe evolution in consumer priorities when they look fora provider. In 2017, 30% of adopters ranked the ease of
opening an account as their top priority when selecting a
FinTech provider, while only 13% said attractive fees or prices
were most important. In the 2019 survey, the priorities
flipped, with 27% ranking price first and 20% picking easeof opening an account. Chinese consumers ranked ease of
onboarding as the least important consideration—a reflectionof the widespread adoption in that market of open APIs andplatform-based services, which has made opening any kind of
financial services account virtually frictionless.

China is an early forerunner of a global trend sparked byincreased competition, improved onboarding experiences,and the portability of data enabled by technology and, insome markets, changes in regulation. Consumers now expect
a frictionless onboarding experience; it has become anindustry hygiene factor, meaning customers can shift theirattention to other priorities.
Interestingly, fewer adopters chose better experiences,
and access to different and more innovative products andservices, as their top reason for using a FinTech challenger,
perhaps indicating the increasing comparability andcompetitiveness of FinTech services provided by incumbents.
Given the wide array of FinTech services available today, allproviders have evolved from simply trying to lure curious
or frustrated consumers with an easy set-up process todeveloping new strategies to retain existing customers andinduce them to make educated choices.

FIGURE 6 | Select reasons for using FinTech challengers, from 2017 to 2019

30%

27%

20%

24%
18%

13%
More attractive rates or fees

Easier to set up an account2017

Access to different andmore innovative products
and services

16%

12%

Better experience, better
product features andquality of service

2019

Notes: The figures show the percentage of adopters that chose each answer as the primary reason for using a FinTech challenger in 2019 and in2017. Data for 2017 differs from that originally published in order to align to the 2019 categorization and averaging methodology.

12

Global FinTech Adoption Index 2019

Finding 6: While consumers’ trust in their main bankor insurer remains high, 33% of FinTech adopters say theywould first turn to another organization when considering a
new financial services product.
We also see an evolution in the attitudes of non-adopters.
As it was in 2017, lack of awareness and understanding
continues to be the top reason for why consumers opt touse an incumbent financial institution rather than a FinTech
challenger. However, one factor has risen from the least
common reason in 2017 to the second most common
reason in 2019 – trust. Non-adopters choose to remain
with incumbent providers because they trust them morethan FinTech challengers. Trust is the top barrier to usinga FinTech challenger in markets such as Chile, France andJapan. As more incumbents offer their own FinTech
services, their ability to build on pre-existing trust takes
on new significance.

FIGURE 7 | Select reasons for using incumbent financial
institutions, from 2017 to 2019

42%
34%
22%
15%
Not aware or limited
understanding of how
FinTech challengers work
2017

Greater level of trust thanwith FinTech challengers

2019

Notes: The figures show the percentage of non-adopters that chose eachanswer as the primary reason for using an incumbent financial institution
in 2019 and in 2017. Data for 2017 differs from that originally publishedin order to align to the 2019 categorization and averaging methodology.

Most adopters and non-adopters say they would turn firstto their current bank or insurer when considering a newservice. However, 33% of adopters said they would first turnto alternative providers, be it another incumbent, a pricecomparison web site or a FinTech challenger. In contrast, 23%
of non-adopters said they “did not know” where they would
turn, suggesting they are underserved by their current banks
and insurers while lacking knowledge of alternatives.

Global FinTech Adoption Index 201913

FIGURE 8 | Primary financial services relationship owner, by FinTech adopters and non-adopters
Adopters
58%

9%

11%

13%

2%

8%

Non-adopters
62%

My existing bankor insurancecompany

Another traditional
financial services
company that
I don’t have arelationship withcurrently

4% 2%

A FinTechcompany that I
currently have arelationship with

Options suggested
by a pricecomparison site

6%

3%

23%

Other

Don’t know

Notes: The figures show the percentage of adopters and non-adopters who indicated who they would turn to first when considering a new financial
services product or policy.

Adopters are more likely to use multiple providers forfinancial services, from a variety of sources, including
incumbents, FinTechs and organizations from outside theindustry. Eighteen percent of adopters use five or moredifferent providers, compared with 7% of non-adopters. The
heightened willingness of adopters to purchase products
from multiple providers correlates with the increased
commoditization and disaggregation of financial services.
Price-conscious consumers can now readily choose between
a wide variety of incumbents and challengers, and they canuse comparison websites and other tools to help them selectthe most suitable products.
Many consumers now hold relationships with numerous
discrete providers for specific products and services. Leading
the way with using five or more providers are consumers
in China (36%), UK (23%) and Japan (22%). These are also
markets in which open APIs within financial services havegained significant traction, which both enables consumers
to be more easily served by multiple providers and enhances
the value proposition of FinTech services such as personal
financial management applications.

14

Global FinTech Adoption Index 2019

Ultimately, word-of-mouth plays an important role in theselection of financial providers, with 30% of adopters and 35%
of non-adopters relying on “family, friends and colleagues”
for advice, well above the 13% who depend on relationshipmanagers at their bank or insurer. The rise of social media
networks helps facilitate these consumer-to-consumer
conversations, suggesting that virality, remains an effective
marketing strategy for FinTechs.
These trends mean that incumbents offering their own
FinTech services need to be mindful of industry hygiene
factors, i.e., those product characteristics that consumers
now consider prerequisites, including that they be simple,
transparent, frictionless, personalized and omni-channel.
Incumbents that meet these tests can then build on theirinherent strengths, such as existing customer relationships,
longstanding connections with industry peers and regulators,
and a global brand name.

Rise of non-financial services companies and the growth of ecosystems
Finding 7: 68% of consumers are willing to consider a financial
services product offered by a non-financial services company.
Challengers and incumbents alike face a new competitive
threat that comes from outside the financial industry
altogether. Non-financial services companies such asretailers, technology platforms, and automakers are
increasingly developing their own technology-enabledfinancial services offerings. These organizations build
on existing relationships with customers to offer holistic
propositions accompanied by complementary services,
including activities such as insurance and lending that wereonce the exclusive purview of financial providers.
Often, these non-financial services companies enter thegame having already gone through their own transformations
around innovative technologies. They have redeveloped
their original consumer propositions to become faster,frictionless, cheaper and more convenient. Their successfultransformations influence consumer perceptions andexpectations toward financial offerings.
Across the five categories, 68% of consumers are willingto consider a financial product offered by a non-financial
services company. They are most open to retailers (45%)
and telecommunication firms (44%) as service providers,and most willing to use money and transfer payment
FinTech services such as digital-only banking and multimerchant eWallets.

FIGURE 9 | Analysis of preferences in using non-financial
services company as providers of financial
services products
A non-financial services company offering:

52%

eWallet that can be used for
payments with different businesses

51%

Online digital-onlybanking bank account43%

Insurance-linked smart devices
for car, home and individual use

40%

Online budgeting andfinancial planning tools

37%

Peer-to-peer or online shortterm loans as investments

37%

Online investment advice
and investment management36%

Peer-to-peer or online
short-term borrowing

Figure 9 continues on the following page.

Global FinTech Adoption Index 201915

Figure 9 continued.
Any financial services products, as provided by:

45%

Retail44%

Telecommunications

41%

Technology and social media

33%

Power and utilities

22%

Other

68%

Any of the above industries

Notes: The figures show the percentage of respondents who indicatedthat they would be willing to consider using specific FinTech products, if
they were offered by organizations in non-financial services industries.
Respondents were also shown examples of local brands for each industry.

As expected, FinTech adopters are much more willing than
non-adopters to consider financial products offered by nonfinancial services companies. However, even 30% of nonadopters are willing to consider a digital-only bank accountfrom a non-financial services company.

16

Global FinTech Adoption Index 2019

Finding 8: 46% of FinTech adopters are willing to share
their bank data with other organizations in exchange forbetter offers.
Many FinTech propositions depend on the easy portabilityof data, such as during onboarding or in enabling real-time
account access. Unsurprisingly, when asked whether theywould be comfortable with their main bank sharing theirfinancial data with other organizations if that meant theymight receive better offers, 46% of adopters said they would,
compared with just 20% of non-adopters.
However, even adopters are hesitant when it comes tosharing data with non-financial services companies; 38%of adopters said they would be willing to share data withother traditional financial institutions, 31% would sharewith FinTech challengers, and just 23% would share with
non-financial services companies. The sentiments differ
somewhat from market to market. Chinese consumers,for example, are more willing to share data with FinTech
challengers than they are with others financial companies.

FIGURE 10 | Analysis of preferences in sharing banking data, by FinTech adopters and non-adopters

46%
38%
31%
17%

23%

20%
10%

8%
Other financial
services institutions

Non-financial services
organizations
Adopters

FinTech challengers

Any provider

Non-adopters

Notes: The figures show the percentage of respondents who either ‘agree’ or ‘strongly agree’ that they would be comfortable for their main bank tosecurely share their financial data with other organizations, by FinTech adopters and non-adopters. “Any provider” reflect the percentage of adoptersand non-adopters that have selected ‘agree’ or ‘strongly agree’ for at least one of the other types of organizations.

Our findings show that there is a trust gap that can create
opportunities for both incumbent financial institutions and
FinTech challengers. Even though non-financial services
companies have led the way in deploying new technologies
to deliver innovative services and have raised the bar
on consumer expectations, they do not yet have the fullconfidence of consumers when it comes to providing financial
services on their own.
When we asked FinTech adopters if they were comfortablewith a non-financial services company providing financial
services, almost half (47%) said they would be happy to
use those services if the non-financial services company
was working in partnership with a traditional financial
company, 27% said they would be happy to use the services
if the non-financial services company partnered with a
FinTech challenger, and just 18% said they would be happy
to use the services if the non-financial services company
offered them on its own. This underscores the prominentrole of incumbents, as the primary bearers of consumer
trust and their main point of contact, in driving thedevelopment of FinTech ecosystems.

Looking ahead, newly developing
ecosystems will encourage industry
convergence as FinTech challengers
continue to mature, as more incumbents
offer credible FinTech services, and as
non-financial services companies
expand their customer offerings into
financial services.
These ecosystems feature webs of collaborative,
and sometimes conflicting, relationships within acontext of continual industry change and innovation.
All this activity suggests more innovation, better
experiences and more choices for global consumers,
who are increasingly aware of and willing to use
FinTech services.

Global FinTech Adoption Index 201917

Methodology
Our consumer survey is based on 27,103 online
interviews with digitally active adults between
4 February and 11 March 2019. The aim was toget a global understanding of FinTech adoption
trends between markets, demographic groups,
and over time. We interviewed consumers in
27 markets: Argentina, Australia, Belgium andLuxembourg (treated as one market), Brazil,
Canada, Chile, China (mainland), Colombia,
France, Germany, Hong Kong, India, Ireland,
Italy, Japan, Mexico, the Netherlands, Peru,
Russia, Singapore, South Africa, South Korea,
Spain, Sweden, Switzerland, the UK and the US.

Our 2015 study had 10 FinTech services within five broad
categories, and we defined a FinTech adopter as someone
who used two or more of these services. In 2017, inrecognition of how the industry had evolved, we added
seven services that were becoming more prevalent globally(although not necessarily in all our markets). To improvecompatibility among the surveys, we introduced theconcept of “buckets” and grouped similar services together.
Therefore, a FinTech adopter was someone who used two or
more buckets.
Our 2019 study retains the same five categories used inprior years: money transfer and payments, budgeting andfinancial planning, savings and investments, borrowing, andinsurance. There are now 19 individual services. However, by
maintaining the same ten buckets that we used in 2017, weenabled year-on-year comparisons. We have also recognizedthat some of these services are the “disrupted” services
historically been offered by traditional financial providers,and some are “invented” services originated by FinTech
challengers and enabled by technology.
As with prior years, during the interviews, we describedeach FinTech service in non-technical terms and provided
named, market-specific providers of those services to aid the
respondents’ comprehension.

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Global FinTech Adoption Index 2019

FIGURE 11 | List of consumer FinTech services
Catergories

Services
Online foreign exchange
Overseas remittances

Money transfer and payments

Digital-only branchless banking
Peer-to-peer payments and non-bank money transfers
In-store mobile phone payments
Cryptocurrency eWallet

Budgeting and financial planning

Online budgeting and financial planning tools
Online retirement and pensions management tools
Lending on peer-to-peer platforms
Investments via crowdfunding platforms

Savings and investments

Online investment advice and investment management
Online stock broking
Online spreadbetting
Online-only loan providers

Borrowing

Online marketplaces and aggregators for loans
Online loan brokers and broker facilitation websites
Insurance premium comparison sites

Insurance

Insurance-linked smart devices
App-only insurance

Propositions disrupted by FinTech challengers

In each market, we used samples that reflect current age
and gender distributions. We describe all the respondents as“digitally active” since the surveys were administered online.
That means the surveys exclude demographic sub-groups
that lack internet access, a skew that is slightly stronger inemerging markets. Overall, we have an estimated margin oferror of +/- 1.6%, with a 90% confidence interval.
The survey was translated and administered in local
languages in markets where English is not a leading
language. This naturally excludes consumers in thosemarkets who only speak a minority language, but who may
nonetheless use FinTech services offered in that language.

Propositions invented by FinTech challengers

Consistent with previous years, we applied an unweighted
averaging of results, with the “one market, one vote”
approach across the 27 markets. Answers to certain
demographic questions, such as education and income,were also tailored to each market, and then grouped to allow
for global comparability. When asking respondents about
income levels, we posed the question in each market’s local
currency. To compare between markets, we segmented
incomes into quartiles, with the mean income for eachmarket as the midpoint.

Global FinTech Adoption Index 201919

Chapter 2
SME FinTech adoption trends
The FinTech Adoption Index has tracked
the evolution of consumer FinTech towardmainstream adoption and globalization.
However, that only tells part of the story.
Policymakers, incumbent financial institutions,and FinTech challengers are increasinglyinterested in small and medium-sized enterprises(SMEs), or small and medium-sized businesses,
as they are known in some markets. In
recognition of their growing importance as a
distinct customer segment—one with needs
that differ from those of consumers and large
corporations—we also conducted a survey of
SME FinTech use and adoption.

We interviewed senior decision makers at 1,000 SMEs infive countries— two developed countries (the UK and theUS) and three emerging countries (China, Mexico and South
Africa). Because we asked the respondents to complete an
online survey, our analysis is representative of SMEs that are
digitally active. We discuss our methodology in greater detailat the end of this chapter.
SMEs are at a different point in their adoption journeycompared to consumers, therefore we used a different
methodology in our SME analysis. An SME FinTech adopter
has in the past six months used services provided by a
FinTech in all four of the following categories: banking andpayments, financial management, financing and insurance.
The bar is set high for what constitutes an SME FinTech
adopter. Companies are actively seeking technology solutions
to increase efficiency and lower costs across their business.
They are also subject to regulatory requirements in somemarkets, which necessitate adoption of products and services
such as bookkeeping tools for audit and tax purposes, orbusiness liability insurance. FinTech challengers are rapidly
becoming reliable vendors for SMEs in these spaces, whichhave been historically underserved by incumbents.
FinTech services used by SMEs also differ from those usedby consumers. Within the payments category, for example,
SMEs use online payment processors and Mobile Point ofSale (mPOS) payment machines to accept payments, while
consumers use other services, such as in-store mobile phone
payments, to pay for purchases.

20

Global FinTech Adoption Index 2019

FIGURE 12 | SME FinTech adoption across 5 markets

61% China
23% USA

10

18% UK
16% South Africa
11% Mexico

20

25%
Average
adoption

30

40

60

50

Notes: The figures show FinTech adopters as a percentage of the digitally active SME population in each market.
All averages are shown on an unweighted basis.

Global FinTech Adoption Index 201921

SMEs worldwide have become significant users of FinTech
Finding 1: 25% of SMEs have adopted FinTech globally.
Across the five markets we surveyed, China displays thehighest FinTech adoption rate at 61%, followed by the US,
at 23%. The adoption rate globally is 25%. That means thatwithin the past six months, one in four SMEs globally has
used services provided by a FinTech in all four categories.
When SMEs use a FinTech, it essentially means that they haveselected that FinTech to be a vendor. Because SMEs commit
resources and personnel to select their vendors, the decision
to use a FinTech is deliberate and made in a professional
context. SMEs adopt FinTech to address specific businessproblems and provide credible solutions. Therefore, 25% is
a high adoption rate when it comes to companies adopting
new technologies.
The exceptionally high adoption rate in China is indicativeof the widespread use of financial platforms and ecosystems.
Were China not part of the mix, the average global FinTech
adoption rate would be lower, at 17%. In that case, the US
would have the highest SME FinTech adoption among thefour markets, followed by the UK and South Africa.

22

Global FinTech Adoption Index 2019

Our survey shows that the FinTech adoption rate among
SMEs is poised to rise. About 22% of non-adopters alreadyuse FinTech services in three categories, which means they
are on the verge of becoming FinTech adopters. This ties inwith our question about future use, in which we asked SMEs
if they intended to use each FinTech service in the next year.
By that measure, the global adoption rate could surge from
25% to 64%.
FinTech adopters share common characteristics acrossmarkets. They are likely to be high-growth companies,
backed by venture capitalists (VCs): adoption rate among
VC-backed SMEs is 38%. Adopters also tend to have a global
outlook: the adoption rate among SMEs with an internationalcustomer base is 55%. There is also an emphasis on internet
sales, with nearly all FinTech adopters (96%) agreeing thatonline and mobile sales channels are important to theirorganization. FinTech adopters are also heavy users of
online payment processors and online billing and invoice
management solutions.

Finding 2: SME adopters in all markets rank the range offunctionality and features as the top priority in selecting a
FinTech, followed by the availability of services 24 hours aday, seven days a week.

Across our five markets, SMEs choose FinTech solutions
because they provide a good range of functionality andfeatures, have services available around the clock, andare easy to set up, configure and use. There are, however,differences in priorities between markets. In Mexico, where
FinTech adopters are looking for alternative solutions to
traditional, branch-based banking, respondents identify
around-the-clock availability as the most important FinTech
characteristic. In China, by contrast, around-the-clock
availability isn’t a key driver, not because it isn’t important
but because adopters take it as a given. In a market saturated
with super apps, around-the-clock availability is a conditionof entry. For Chinese SME adopters, the number one driveris “range of features and functionality.” In South Africa,
meanwhile, where SMEs face the complexities of doing
business in an emerging market, “compatibility with daily
operations and infrastructure” is among the top three drivers.

FIGURE 13 | Top reasons for using FinTech globallyRates and fees

39%
Trust in the provider’s
team and their reputation

31%
Range of functionality
and features

Ease in setting up, configuring
and using the service

55%

66%

53%

38%

Availability of services
24 hours a day, 7 days a week

Compatibility with daily
operations and infrastructure

Notes: The figures show the percentage of adopters that chose each answer as one of their top three reasons for using a FinTech challenger insteadof an incumbent financial services institution.

Global FinTech Adoption Index 201923

Finding 3: 56% of respondents have used the banking andpayments category.

FIGURE 14 | Use of each category of FinTech services across five markets

92%

91%

89%

62%
56%
51%

49%

46%

36%

33%

31%

23%

Total average

China

Notes: The figures show the percentage of SMEs that have used at least one service in the respective category.

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Global FinTech Adoption Index 2019

MexicoMore than half (56%) of SMEs worldwide have used banking
and payments services, making it the most widely usedcategory, followed by financial management, financing andinsurance. We consider the rate of use per category as thepercentage of SMEs that have used at least one FinTech
service in that category in the past six months.
SMEs in emerging markets are particularly heavy usersof banking and payments services, with 63% using
services in that category. In China, the rate is 92%. Thesehigh rates reflect conditions characteristic of emerging
markets. Developed markets have long-establishedfinancial infrastructures, and FinTech challengers can offer
alternatives to products provided by incumbents. Emerging
markets, by contrast, have less sophisticated financial
infrastructures, which creates opportunities for FinTech
challengers to build products and services from the ground up.

FinTechs in emerging markets can address the needsof underserved customer segments, including SMEs, byproviding them with solutions for key areas of their business,such as banking and payments. SMEs also tend to follow thelead of their customers, many of whom are already significant
users of FinTech services for everyday activities, by accepting
the consumers’ preferred payments methods.
These differences between emerging and developed markets
help explain the varying popularity of specific services acrossthe four categories. In developed markets, the most widelyused FinTech services are online bookkeeping and payroll
management tools, online billing tools, and online payment
processors. In emerging markets, the top services are online
payment processors, online billing and invoice management
tools, and mPOS machines and readers.

52%
47%
43%

49%

41%

41%
37%

34%

34%

26%

South Africa

Banking and payments

31%
24%

UK

Financial management

USA

Financing

Insurance

Global FinTech Adoption Index 201925

FinTech challengers are joining SME-provider ecosystems
Finding 4: 93% of FinTech adopters prefer to find atechnological solution where possible, including when they
face a new regulation.
As observed amongst consumers, SMEs are increasingly
joining FinTech ecosystems that integrate different financial
services propositions offered by challengers, incumbent
financial institutions, and, in some cases, non-financial
services companies. Such ecosystems offer SMEs added
efficiency and security through their interoperability andability to connect different business functions.

The SMEs most likely to use these services—the FinTech
adopters—are “technology-first” organizations; they areheavy users of technology to support a wide range of
operations. When confronted with a business challenge, suchas a change in regulations, they are more likely than nonadopters to seek technological solutions. When facing new
regulations, 93% of adopters favor a technology solution,compared with 70% of non-adopters.

FIGURE 15 | Analysis of views on risk management, financial needs, and use of technology, by FinTech adopters andnon-adopters

My organization has put
insufficient plans in place
to address financial risks
and market downturns

The financial products
and services available donot sufficiently meet myorganization’s needs

When facing new
regulation, myorganization prefers
to find a technologicalsolution where possible

63%
36%

Changing thetechnology or software
my organization uses isvery costly

57%
29%

On the whole, traditionalbanks and insurers
meet the needs of myorganization

79%
69%

Adopters

My organization
regularly reviews ourtechnological tools
and software to ensure
they are still the mostsuitable options for us

93%
70%
82%
61%

98%
83%

Non-adopters

Notes: The figures show the percentage of respondents who either ‘agree’ or ‘strongly agree’ with each statement, by FinTech adoptersand non-adopters.

26

Global FinTech Adoption Index 2019

Adopters are more aware of the costs and benefits oftechnology. They take a more professional approach toreviewing and updating it. Adopters are more likely to agree
that changing the technology in their organization is “verycostly,” but they understand the importance of regularly
renewing it. Nearly all SME adopters (98%) agree that theircompany regularly reviews technological tools and software
to ensure that they are the most suitable options.
Adopters are also more cognizant of the financial risks theircompanies face—another sign of their professionalism andpreparedness. Nearly two-thirds of adopters (63%) say theircompanies haven’t planned sufficiently for financial risks andmarket downturns, compared with just 36% of non-adopters.
This exposure represents an opportunity for FinTechs thatcan develop predictive tools that address specific SME needs—
such as software that forecasts cash flow and programs that
help firms hedge financial and economic risks.

While 79% of SME adopters express satisfaction with theservices provided by traditional banks and insurers, that
doesn’t mean they’re getting everything they need. Morethan half (57%) of adopters agree that the financial products
services available don’t meet the needs of their organization.
While consumers can often find one provider that offers awide range of financial services, there is no comparable onestop-shop provider available to SMEs—no single entity thatoffers services across all their needs. SMEs view incumbent
banks mainly as providers of current accounts, with related
services such as deposit-taking and processing transactions.
Increasingly, we see technology-driven FinTech platforms asa unifier across an SME’s internal business functions, which
also connects them to other vendors and marketplaces forpoint solutions. These platforms will also encourage higher
SME FinTech adoption in the future, by increasing SME
awareness of other FinTech services, and enabling easieronboarding journeys.

Global FinTech Adoption Index 201927

Finding 5: When considering new services, adopters are
more likely to seek advice from multiple sources.
FIGURE 16 | Analysis of sources of advice used, by FinTech
adopters and non-adopters

70%
Business advisors

56%
22%
Close friends and family

21%
Government officials andaffiliated organizations

31%
12%

Online websites
and forums

24%
35%
59%

Professional network
and industry contacts

Referrals
or recommendations
from current vendors
and suppliers

Adopters

57%
50%
41%

Non-adopters

Notes: The figures show the percentage of respondents who indicatedthey would seek advice from these sources when deciding whether
to adopt a new service or technology for their business, by FinTech
adopters and non-adopters. Respondents were able to select up to
three answers.

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Global FinTech Adoption Index 2019

Nearly all SMEs (97%) acknowledge that they need help
when it comes to deciding whether to adopt a new service
or technology. However, FinTech adopters are more likely
than non-adopters to seek advice broadly—another signthat adopters are better informed and operate like larger
organizations. We asked SMEs how many sources they would
consult, from zero to three. Seventy-one percent of adopters
said they would seek advice from three sources, comparedwith 52% of non-adopters. Because adopters cast a wider net
when seeking advice, FinTech providers have the opportunity
to reach them through more touchpoints.
FinTech adopters turn most often to business advisors, suchas lawyers and accountants, for advice, while non-adopterstend to rely more often on their professional network andindustry contacts. Adopters are more likely than nonadopters to seek advice from government officials, although
the opposite holds in China, where government agencies
have focused less on advisory programs for SMEs. Acrossgeographies, non-adopters are more likely than adopters toseek advice from websites and forums.

Finding 6: 89% of FinTech adopters are more willing to sharedata with FinTech companies.
FIGURE 17 | Analysis of preferences in sharing banking
data, by FinTech adopters and non-adopters

70%

One of the key determinations SMEs need to make when
considering the use of a FinTech service is how willing they
are to share their data with a third party. Adopters arevery willing to share data—if they think they’re likely to getsomething of value in return. Asked to what extent theywould be comfortable having their main bank securely share
their company’s financial data with other organizations if
it meant they would receive better offers, 89% of adopters
said they would be willing to share with FinTech challengers,
compared with 50% of non-adopters.

Other financial
services companies

49%
89%
FinTech companies

50%
63%
Non-financial
services companies

28%

Adopters

Non-adopters

The willingness of SMEs to share data
becomes an increasingly importantconsideration in the growth of FinTech
ecosystems, where the value proposition
depends on interoperability andparticipants’ willingness to port data
between organizations.
SMEs’ comfort and willingness differs acrossmarkets, reflecting at least in part the maturity andprominence of the primary technology platforms ineach market to date. China in particular is a standout
market with several mature technology-driven
platform providers offering ecosystems integrating
both financial and non-financial services companies.
Many of the SMEs that already use these platforms
for a non-financial service may become FinTech
adopters in the future, as the platforms grow andexpand across more providers.

Notes: The figures show the percentage respondents who either ‘agree’or ‘strongly agree’ that they would be comfortable with their mainbank securely sharing their organization’s financial data with otherorganizations if it meant that they received better offers, by FinTech
adopters and non-adopters.

Global FinTech Adoption Index 201929

Methodology
Our SME survey is based on 1,000 online
interviews with senior decision makers of SME
organizations between 15 and 30 January
2019. Senior decision makers were defined asowners, managing directors, CEOs and otherc-level executives responsible for businessstrategy, operations or financial decisions.
We interviewed 200 organizations per market
in two developed countries (the UK and the US)
and three emerging countries (China, Mexicoand South Africa). Given the fact that the
respondents completed an online survey,
our analysis represents the views of digitally
active SMEs.

There is no global agreement on what constitutes an SME,
with criteria varying even from sector to sector in somemarkets. Each of the five countries we surveyed has adifferent definition based on employee headcount and annual
revenues. For example, a medium-sized enterprise in China,
per government standards, has a headcount that can range
from 200 employees in the wholesale sector to 3,000 in theconstruction sector, while in the UK, the headcount for SMEs
generally reaches a maximum of 250.
To accommodate these variances, we interviewed SMEs withup to 1,000 employees in all five markets. At the lower endof the spectrum, we excluded micro-SMEs, e.g., solo traders
or firms with fewer than 10 employees, since we believethese small enterprises behave differently—and have different
needs—than their larger counterparts. We also set a cap of
US$75 million in annual revenues.
Our survey struck a balance across sectors, with 37%
of respondents from industries such as manufacturing,mining and agriculture; 52% from services such astransportation, healthcare and technology; and 12%
from other industries. Among all the SMEs we surveyed,
63% were backed by venture capitalists, meaning we havea sizeable representation of high-growth companies. We
also have an estimated +/- 3.5% margin of error, with a
90% confidence interval.
We grouped FinTech services into four broad categories:banking and payments, financial management, financing, andinsurance. We looked at FinTech services specifically used by
SMEs, such as mPOS machines and invoice finance solutions,which can differ from those used by consumers.

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Global FinTech Adoption Index 2019

FIGURE 18 | List of SME FinTech services
Catergories

Services
Online foreign exchange

Banking and payments

Digital-only branchless business bank
Online payments processors
Mobile Point of Sale (mPOS) payment machines and readers
Online billing and invoice management tools

Financial management

Online cashflow and liquidity management tools
Online bookkeeping and payroll tools
Online lending platforms

Financing

Online marketplaces, aggregators and brokers
Online equity (including equity crowdfunding) and debt securities
Online invoice financing and dynamic discounting

Insurance

Insurance premium comparison sites

Global FinTech Adoption Index 201931

Chapter 3
From the innovator’s mouth
FIGURE 19 | Selection of key words from the interviews with FinTechs

Much of this report has focused onunderstanding the behaviors and attitudes of
FinTech users, both consumers and SMEs. To
fully tell the story, we need to go beyond thedata and interview some of the companies thatoffer FinTech services. The high adoption rateof FinTech around the globe presents thesecompanies with myriad opportunities to expand
internationally. Indeed, many have alreadysucceeded in scaling their businesses acrossmultiple international markets.

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Global FinTech Adoption Index 2019

Building on our 2017 report, which focused on how FinTech
challengers could achieve traction with customers andgain share in their home markets, we spoke this year to 10
companies about their plans for international expansion.
Included in our sample are FinTech challengers, incumbent
financial institutions and cross-sector technology companies.
Our interviews highlight key attributes of successfulinternational expansion, such as encouraging customer
engagement and delivering value in different markets,
building and professionalizing operations, creating andmaintaining a cohesive company culture across various
geographies, and assembling complex, multi-party ecosystems.
The following quotes are drawn from separate interviews witheach company, which we’ve subsequently condensed andaggregated by theme.

Introducing the FinTechs
Adrian Gore
CEO, Discovery
HQ: South Africa
Current traction: 18 million customers
Established in 1992, Discovery operates in 19 markets,
including Australia, Canada, China, Malaysia, Pakistan,Philippines, Singapore, South Africa, South Korea, the United
Kingdom and the United States. Discovery is an insurancecompany whose purpose and ambition are achieved througha pioneering business model that incentivizes people to behealthier and enhances and protects their lives. The Vitality
wellness programme forms the foundation of Discovery’s
shared-value insurance model, which in turn delivers better
health and value for clients, superior actuarial dynamics forthe insurer, and a healthier society.
Alesia Haas
CFO, Coinbase
HQ: United States
Current traction: 30 million customers
Coinbase was founded in 2012 and has built a trusted
platform to access the cryptoeconomy. Coinbase is currently
active in over 50 countries, such as Singapore, Australia,
Denmark, Estonia, France, Italy, The Netherlands, the UK,
Canada and the US. We offer an entire suite of products thatmake accessing cryptocurrencies easy and secure, as well
as a range of tools that operate at the frontiers of crypto
and blockchain. The Coinbase mission is to create an open
financial system for the world. We think an open financial
system can be a great equalizer and serve the unbanked
population, while accelerating the pace of innovation aroundthe world.

Frank Jan Risseeuw
CEO, Yolt
HQ: The Netherlands
Launched in 2017 with backing from ING, Yolt is currently
available to 500,000 registered users in the UK, Italy andFrance, giving everyone the power to be smart with theirmoney. Built on the promise of Open Banking and PSD2,
users can view their accounts and cards, transfer moneyand find better deals in one clear app. An expanding
pan-European money platform, Yolt innovates throughpartnership connections, smarter analytics and collaboration.
Harit Talwar	Global Head of Consumer Digital Finance,
Marcus by Goldman Sachs
HQ: United States
Current traction: 3 million customers
Marcus by Goldman Sachs® is the global consumer businesscreated by Goldman Sachs to disrupt the distribution andconsumption of consumer financial services. Marcus is a
start-up with 150 years of financial expertise behind it anda vision is to build an integrated digital storefront for tensof millions of consumers to take control of their financial
lives. Today, Marcus offers proprietary products including
a free personal financial management app, no-fee personalloans, high-yield savings accounts and certificates of deposit.
Beyond the products currently offered, an important elementof the Marcus business is strategic partnerships. Marcus willcontinue to explore personalized products to save, borrowand spend that are simple, transparent and always on theside of the customer.

Global FinTech Adoption Index 201933

Paul Chapman
Chief Executive & Founder, Moneytree KK
HQ: Japan
Current traction: 3 million customers
Launched in 2013, Moneytree is the utility layer forconnecting to financial services in Japan and Australia. By
partnering with financial institutions and FinTechs alike,
Moneytree is building a trust-based ecosystem that leverages
Open Banking for consumers and businesses. We make it
simple for people to get a real-time view of all their financial
data, and ultimately help people make real financial progress,
without compromising on their privacy.
Prajit Nanu
Co-founder & CEO, InstaReM
HQ: Singapore
Current traction: 180,000 customers
InstaReM was launched in 2015 and is a digital cross-border
payments company with presence across Asia-Pacific, North
America and Europe, in over 35 markets. InstaReM offers
innovative solutions to send, spend and collect money infast, convenient and cost-effective ways in multiple markets
to its customers who include expatriates having moved
overseas to support families back in their home countries,
and businesses that make regular payments to their overseas
associates. It serves payments companies, marketplaces,
the travel segment and large corporates, and also powers
cross-border payments for several large banks in South East
Asia. InstaReM’s mission remains to democratize money
movements across the globe with innovative products thatprovide individual and enterprise users with seamless digital
payments experiences.

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Global FinTech Adoption Index 2019

Reuben Lai
Senior Managing Director, Grab Financial Group

Shengqiang Chen
CEO, JD Digits

HQ: Singapore
Current traction: 144 million customers

HQ: China
Current traction: 400 million customers

Launched in 2018, Grab Financial Group is present in
Singapore, Malaysia, Indonesia, the Philippines, Thailand
and Vietnam. Their mission is to bring financial inclusion to
Southeast Asia’s growing base of middle class consumers.
To continue their momentum and success from their originalride-hailing business, they are building within the Grab app
an ‘ASEAN Wallet’ which gives users access to any financial
service, goods or services everywhere in Southeast Asia.
Serving both consumers and merchants in Southeast Asia,
Grab Financial Group aims to become both one of theregion’s largest merchant networks with the largest
insurtech policy provider and the biggest FinTech lender
all within one platform.

JD Digits started in 2013, as an extension to the JD.com
e-commerce business to provide their customers andbusinesses with a convenient way to access financial
services. JD Digits became one of China’s leading financial
technology for enterprises and consumers with a broad
range of innovative products, including supply chain
finance, consumer finance, crowd funding and cloudservices. JD Digits is currently present in China (mainland),Hong Kong and Thailand, with a mission to foster FinTech
innovation, promote financial inclusion, and enhancecustomer experience.

Samir Desai
Co-founder & CEO, Funding Circle
HQ: United Kingdom
Current traction: 158,000 customers
Funding Circle was founded in 2010, in direct response to
the financial crisis, when banks pulled back from lending over
the years. It has become evident that small businesses areunderserved in every country we operate in and beyond ourcurrent footprint. Small businesses are powering economic
growth and job creation across the world, which is why we’ve
made it our mission to help them achieve more and go evenfurther. Funding Circle’s platform enables investors to lend tosmall businesses, and currently operates in the UK, the US,
Germany and the Netherlands, serving 68,000 businesses
and 90,000 investors. From butchers and bakers to IT
consultants and accountants, these are the businesses thatare made to do more and supporting them is a mission that
continues to inspire us every day.

Steve Polsky
Founder & CEO, Juvo
HQ: United States
Current traction: 100 million customers
Juvo was launched in 2014 and is currently active in 24
countries across Latin America, South America, Eastern
Europe and Southeast Asia. Juvo is a pioneer in mobile
identity scoring for financial access. The company was
founded with an overarching mission: to create the YES
economy. They do that by establishing financial identities
for the billions of people worldwide who are creditworthy,
yet financially excluded. The founder Steve Polsky first
conceived of the company after realizing the vast potential toreach previously underserved populations across the globe,
through their mobile phone. Juvo does this by partneringwith mobile operators, providing mobile users access to credit
and financial services via everyday interactions.

Global FinTech Adoption Index 201935

Questions and answers
What strategies have you used to drive customer engagement in both
initial and international markets? How do you deliver value to yourcustomers? What lessons did you carry over from the initial market?
AdrianPaul“Vitality‘s behavioral platform measures engagement
clinically and actuarially, enabling the dynamic pricing ofvarious risks, which allows us to price clients individuallyat inception. In life insurance, this means that clients’premiums increase or decrease based on their Vitality
engagement. In this way, our model continues to drive
shared value: it improves risk behavior and value for clients,
delivers actuarial dynamics for the insurer, and promotes ahealthier society at large.”“Key lessons learned as Moneytree expanded: first, theimportance of trust, privacy, consistent and authentic
messaging to individuals, businesses and large enterpriseclients; second, the importance of providing a highquality and reliable service; and third, the importanceof communicating the benefits of access to customer
data, as well as the need for solid privacy, security anddata governance.”Frank Jan
“From the very beginning, Yolt has worked closely with ourcommunity of vocal users to make sure we’re constantly
monitoring and closing the loop between their feedback
and the features in our roadmap. Our innovation is driven
by meeting our users’ needs, day to day. For example, mostusers have regular outgoings for bills and housing, so wedeveloped features centered around upcoming debits,
predicted outgoings, and energy and gas comparison.
Analyzing user transactions, we developed more spending
categories and our customizable tagging feature. We engage
with our users across all touch points and channels, from
regular in-person events to user testing, surveys, and more.
This is an approach that we champion across all markets.”

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Global FinTech Adoption Index 2019

Prajit“We connect with our target customers by creatingawareness via conventional channels like print, online
and affiliate partnerships. I feel personal referrals are
an extremely powerful way to gain traction with target
customers. InstaReM focuses on great customer experience,
which, in turn, helps bring enhance referral traffic on ourplatform. We are receiving strong referral traffic in most of
the markets that we are operating in. For us, a high levelof referral traffic is indicative of the fact that the users are
getting what they are expecting from our service.”ReubenSteve“Grab is a company built by Southeast Asians for Southeast
Asia. We have strong local leaders and experts in every
country we operate in and are trusted by local consumers.
This local market advantage allows Grab to continue building
products that the region’s emerging middle-class consumers
will actually use. One example is the service that allows
Grab’s millions of ride-hailing drivers to also serve as mobile
ATMs, allowing consumers in heavily unbanked countries
like the Philippines and Indonesia to top-up their GrabPay
wallets simply by handing cash to their driver.”“The Juvo platform was an entirely new concept for
populations who had largely been ignored by traditional
financial services, but it was quickly adopted by mobile
subscribers as they could start with small airtime credit
extensions on their mobile service and subsequently walk up
the ladder to bigger and better financial opportunities. What
starts as a simple top up can quickly advance toward accessto things such as smartphone financing, insurance or evensmall business loans.”

Shengqiang“We learned that offering standardized services to aheterogeneous customer base with unique tastes andpreferences impedes the growth of the consumer’s
ever-changing investment and consumption habits.
JD Digits optimizes the user experience by utilizing
data and technology for flexible financing solutions,innovative eWallet services, and alternative credit scoring.
Technological innovation in AI and blockchain in the logistics
and supply chain financing business helped merchants
reduce production lead times, increase product speed
to market, minimize costs, and improved use of data for
integration from merchants and vendors to our platform.“

Global FinTech Adoption Index 201937

What were the key drivers in deciding where to expand? How did you fundand implement your international expansion plan? What role did regulation
play in your international expansion journey?
AlesiaPrajit“As a regulated and trusted exchange operator, Coinbase’s
continued compliance with local regulations is a criticalelement of our ongoing success. As we scale to new markets
and serve even more customers, it’s our goal to build thesame level of trust in every new region we enter as we havebuilt in the U.S. and Europe. We work hand-in-hand with local
regulators to not only ensure our compliance laws, but also
to share our experience at the vanguard of crypto.”“We developed our first money transfer platform with seedfunding in January 2015. In March 2016, we raised theSeries A round of funding, which helped us build the basic
infrastructure and payment mesh, and partner with a
network of banks. This was followed by the Series B fundingin July 2017, which was used for augmenting our global
payment infrastructure, as well as developing new products
and acquiring licenses in new markets like Malaysia, India,
EU and the US. This funding was also used in boosting our
employee strength. We acquired new talent in areas suchas technology, marketing, customer service and complianceacross all markets. In April 2019, we closed our Series C
round, proceeds of which are being utilized to accelerate
growth in existing and new markets, and support the launchof new products, including a card-issuing platform.”Paul“At the time we entered the Australian market, the discussion
around Open Banking was quickly gaining momentum. We
made it a priority to contribute to its formation, and to
become one of the first FinTechs to identify and leverage
new opportunities Open Banking makes possible. By
submitting feedback directly to the Australian Government
enquiry, informed by our experience in establishing OpenBanking in Japan, we were able to contribute to the local
Australian ecosystem. This also established Moneytree asa knowledgeable and collaborative industry participant in
the local context. Our early regulatory outreach led
to Moneytree being invited to join the Data Standards
Advisory Committee, where we continue to contributeto the establishment of Open Banking in Australia.”

38

Global FinTech Adoption Index 2019

Samir“Being a global business has been our objective since dayone; it’s paramount to our success and long-term vision.
Funding Circle launched in the US following the acquisitionof a company who were using similar models to improvebusiness lending in the States. Two years later, we followed
a similar acquisition route to expand into Germany and
the Netherlands. We also recently announced our plans toenter Canada organically later this year to help underserved
Canadian small businesses to access the finance they needto grow. There are many areas to consider when scoping
and researching new geographies. From demand for small
business borrowing and investor sentiment, to credit data
availability and operational complexity. When it comes toimplementing our model, we’re able to leverage learnings
from our established geographies which allows us to scale
up new markets as smoothly and efficiently as possible.
This includes using our prior experience in building credit
assessment models and our understanding of how tonavigate new regulatory systems.”
Steve“From day one Juvo has been a global company that justhappens to be founded and headquartered in San Francisco.
To turn our vision into reality we’ve had to ‘fish where thefish are.’ This meant launching the company outside of the
U.S. To succeed in those early days in Guatemala, and inother markets where we’ve since launched in, we’ve had
to understand the unique nuances of the very different
populations we serve. This entailed methodically starting
small, learning about our consumers and then growing
strategically. We have realized significant success byaddressing big needs in small markets and growing with
our partners.”

Global FinTech Adoption Index 201939

What role does your company culture play in achieving customer traction
and scaling internationally? How did you leverage your brand and existing
operations to expand into new markets?
Harit

Frank Jan

“To reinvent consumer finances, and to build a company
that is entirely on the side of consumers, we knew fromthe outset that we would need to build a talented anddiverse team. Since our founding in 2016, we haveaimed to assemble a creative powerhouse of disruptive
innovation. One third of our team is hand-picked from
Goldman Sachs, another third is from traditional consumer
finance companies, and one third is from a range of nonfinancial industry leaders across technology, e-commerceand consumer goods. Unifying this varied employee baseis paramount to our singular mission: To help consumers
achieve greater financial well-being. Whether throughpersonal loans that reduce high interest debt, savings
accounts that provide more value, or personal financial
management tools that help consumers take control of theirpersonal finances, every Marcus team member is personallycommitted to serving this larger purpose.”“A venture of ING Bank, Yolt was designed with both theinnovation and agility of a start-up and the security andstrength of a bank. Yolt has created all our systems,
products and developments in-house from scratch and has
our own autonomy and brand identity. We pride ourselves on
working agile to deliver a customer-app that our community
loves. We’re also an international team. In Amsterdam,
we have several feature teams, working end-to-end on
delivering new and updating existing features. Our central
marketing team is based in London and oversees all markets,with on the ground support in France and Italy, ensuring wemaintain cultural relevance.”40

Global FinTech Adoption Index 2019

Samir“We draw on the impressive talent we have across thebusiness. Culture is a critical component of our successand our core values are focused on encouraging employee
engagement, ambition, teamwork and passion. The more
Funding Circle expands internationally, the harder thisbecomes. To combat this, we utilize talent in our establishedmarkets to help grow and nurture new teams in othercountries. Not only does this help to retain our uniqueculture, but it also opens up great opportunities for people
to develop their careers.”

To facilitate your international expansion journey, did you tap into
ecosystems of partners, customers, and suppliers? What role do you see
your company playing in these multi-party financial ecosystems?
AdrianReuben“With the aim of growing the reach of the shared-value
insurance model around the globe, Discovery established
Vitality Group, which integrates tailored Vitality programmeswith partner insurance products to drive additional value
in areas our partner insurers have identified. Vitality Groupis supported by the Global Vitality Network to create an
ecosystem where the assets are available to all markets, andthe value generated from positive selection and behavior
change is shared among the participants.”“Grab uses a single smartphone app to offer a range offinancial and consumer service products to support
unconnected individuals and small businesses. GrabPay is
the first mobile wallet with e-money licenses across the six
largest economies in Southeast Asia. Grab Financial Services
offers insurance and microloans, enabling unbanked
consumers in emerging markets to secure the capitalneeded to grow their businesses, buy a home for theirfamilies, and pay for their children’s school fees or medical
bills. Grab Financial is beating the heavily fragmented
and cash-based nature of the region by building an open
ecosystem which today comprises over 100 local andinternational financial institutions.”

Alesia“From the start, Coinbase’s mission has been to create an
open financial system for the world by being the easiest
and most trusted place to buy, sell, and interact with thecryptoeconomy. We are aiming to build the infrastructure
between traditional finance and the cryptoeconomy. Our
mission is inherently global. We see Coinbase’s growth asvalidation that the ecosystem will only continue to grow insize, influence and impact—ultimately ushering in a more
open financial system for the world.”

Shengqiang“FinTech, technology and data are central to the JD Digits’
vision of the Digital Economy Ecosystem. Our expansion into
international markets began in 2018 with strategic local
partners in Hong Kong and Thailand. We believe in organic
growth, which means essentially taking a holistic approachwith partnerships that understand local cultures andnuances. We aim to create a secure digital ecosystem witha focus on providing customers with flexible solutions
anytime and anywhere to complement their everyday lives.”

Interviewed between March 3 – April 8 2019.

Global FinTech Adoption Index 201941

Contacts
For further information, please contact EY’s global FinTech team.
Global FinTech leadership team and
FinTech Adoption Index steering committee
Matt Hatch
Ernst & Young LLP
Americas FinTech Leader
San Francisco

Tom BullErnst & Young LLP
UK FinTech Leader and FinTech Adoption Index Leader
Londonmatthew.hatch@ey.com

tbull1@uk.ey.com

Christopher Schmitz
Ernst & Young LLP
EMEIA FinTech Leader
Frankfurt

Sharon Chen
Ernst & Young LLP
FinTech Adoption Index Lead Author
Londonchristopher.schmitz@de.ey.com

schen@uk.ey.com

James Lloyd
Ernst & Young Transactions Ltd
Asia-Pacific FinTech Leader
Hong Kong SAR of China

Doina Chiselita
Ernst & Young LLP
FinTech Adoption Index Co-author
Londonjames.lloyd@hk.ey.com

dchiselita@uk.ey.com

Varun Mittal
Ernst & Young LLP
Global Emerging Markets and ASEAN FinTech Leader
Singaporevarun.mittal@sg.ey.com

42

FinTech Adoption Index teamGlobal FinTech Adoption Index 2019

Global FinTech network
Argentina
Juan Pablo Grisolia
juan-pablo.grisolia@ar.ey.com

Hong Kong SAR of China
James Lloyd
james.lloyd@hk.ey.com

RussiaAleksey K Rybnikov
aleksey.rybnikov@ru.ey.com

Australia
Meredith Angwin
Meredith.Angwin@au.ey.com

India
Mahesh Makhija
mahesh.makhija@in.ey.com

Singapore
Varun Mittal
varun.mittal@sg.ey.com

Belgium
Yannick Grécourt
yannick.grecourt@be.ey.com

IrelandNiall Corrigan
niall.corrigan@ie.ey.com

South Africa
Ashwin Goolab
ashwin.goolab@za.ey.com

BrazilChen Weichichen.weichi@br.ey.com

Italy
Carlo Alberto Minasi
carlo.alberto.minasi@it.ey.com

South Korea
Young-Suk Kim
young-suk.kim@kr.ey.com

CanadaRon Stokes
ron.k.stokes@ca.ey.com

Japan
Chikara Adachichikara.adachi@jp.ey.com

Spain
Luis Manuel Saiz Gutierrez
luismanuel.saizgutierrez@es.ey.com

Chile
Mauricio Martínez Gutierrez
mauricio.martinez@cl.ey.com

LATAM
Rocio Velazco-Rotemrocio.velazcorotem@ey.com

SwedenCarl Rudincarl.rudin@se.ey.com

China
Henry B Zheng
henry-b.zheng@cn.ey.com

LuxembourgGaël Denisgael.denis@lu.ey.com

Switzerland
David Bufka
david.bufka@ch.ey.com

Colombia
Juan Taboada
juan.taboada@co.ey.com

MexicoGustavo Jurado
gustavo.jurado@mx.ey.com

UK
Tom Bull
tbull1@uk.ey.com

FranceThierry Groues
thierry.groues@fr.ey.com

Netherlands
Lisette Ens
lisette.ens@nl.ey.com

USA
Matt Hatch
matthew.hatch@ey.com

Germany
Christopher Schmitz
christopher.schmitz@de.ey.com

Peru
Alejandro Carranza
alejandro.carranza@pe.ey.com

Global FinTech Adoption Index 201943

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