The take-up of fintech services is accelerating in Australia

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Australians like their fintech, with adoption rates for new ways of managing their finances doubling in 18 months, according to analysis by EY.

Australia is now ranked fifth highest in fintech adoption among 20 markets surveyed globally, according to the latest EY FinTech Adoption Index.

China has the highest level of adoption at 69%, followed by India (52%), the UK (42%) and Brazil (40%), with Australia at 37%, a jump from 13% in 2015.

The study, based on 22,000 online interviews with digitally active consumers across 20 markets, shows fintech services are poised for mainstream adoption with an average of one in every three (33%) digitally active consumers now using fintech.

“Ease of setting up an account and having access to services 24 hours a day, seven days a week are the top drivers for fintech adoption in Australia,” says EY FinTech spokesperson, Rowan Macdonald.

“We expect rates of adoption to continue to grow as awareness of innovative products and services build.”

The EY FinTech Adoption Index evaluates services offered by fintechs under five broad categories: money transfers and payments services; financial planning; savings and investments; borrowing and insurance.

Globally, money transfers and payments services are leading the fintech charge with adoption standing at 50% in 2017.

New services such as online digital-only banks and mobile phone payment at checkout are contributing to the trend.

Australia has the fourth highest current adoption rate for money transfers and payments services, at 59%.

Insurance has also made gains, moving from being one of the least commonly used fintech services globally in 2015 to the second most popular in 2017, now standing at 24%.

Adoption levels for insurance fintech services in Australia are higher than the global average at 29%.

According to the study, the upswing has largely been due to the expansion of technologies such as telematics and wearables (helping companies to better predict claim probability) and the inclusion and growth of premium comparison sites.

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