Canadian FinTech adoption could triple within a year: EY

The young and affluent are most likely to try innovative online financial products

FinTech–online financial services products developed by non-bank and non-insurance companies–aren’t very popular in Canada, but an EY study predicts adoption rates could triple within a year.

Right now, just 8.2 percent of digitally active consumers have used two or more FinTech products in the last six months, compared to 15.5 percent globally.

Read: Peer-to-peer insurance is changing the broker’s role

FinTech adoption is highest among young, affluent Canadians–the largest group of users are 18-to-34-year-olds with incomes of $150,001 U.S. and greater. The smallest group, on the other hand, are those 55 and older who earn less than $30,000 U.S.

Users cite ease of setting up accounts, better rates and fees, and access to different products as their top reasons for using FinTech.

Non-users don’t use FinTech products because they weren’t aware they existed, they don’t need to use them or they simply prefer traditional financial services providers.

 

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.