Irish FinTech adoption surpasses global average
EY Global’s latest FinTech Adoption Index report revealed that the number of Irish consumers embracing financial technology (FinTech) has increased 2.7 times since 2017.
The report, which examines the FinTech industry’s global demand, showed that 71% of Irish adults avail of FinTech services in some form. This surpasses the global average of 64%.
FinTech has seen major growth in the last few years. Irish FinTech adoption rates stood at 26% just two years ago, which was 7% below the global average of 33%.
The study identified three of the main reasons why Irish adults avail of FinTech services over more traditional financial services. Consumers are drawn to the attractive rates and fees on offer (37%), the simple account setup (22%) and the access to innovative products and services (18%).
Irish adoption is driven by the growing use of money transfer and payment (85%), insurance (63%), peer-to-peer payment and non-bank money transfers (76%) and insurance comparison sites (61%), according to the study.
Usage is most prevalent among younger adults; it is most popular with those aged 25-34 (80%). The report also revealed a steady increase of adoption as a consumer’s income increases.
Non-adopters cited limited understanding (39%), trust of FinTech challengers (29%), and a greater wariness of digital processes and channels (8%) as the main reasons for not making the transition from more traditional methods.
As FinTech services continue to gain a foothold within the Irish market, both FinTech adopters (73%) and non-adopters (75%) share their concerns about the security of their personal data when dealing with companies online. However, Irish consumers are increasingly comfortable with sharing data with traditional financial services, FinTech firms and non-financial services companies alike.
Still, the study found that, overall, personal interaction is preferred to digital by both adopters (69%) and non-adopters (68%).
“What was once considered as complex and challenging, FinTech has seen a remarkable increase in growth in Ireland over the past few years, partly due to the rise of mobile-first platforms, but also driven by Irish Government initiatives to encourage FinTech innovation,” said Niall Corrigan, head of digital & CX, EY Financial Services.
“FinTechs are continuing to gain traction in the Irish market blurring the scope and lines between traditional financial products and needs-based or lifestyle propositions.”