Ireland ahead of the curve in FinTech adoption after threefold increase in uptake, surpassing global average

Ireland ahead of the curve in FinTech adoption after threefold increase in uptake, surpassing global average

EY Global FinTech Adoption Index report

FinTech adoption rate in Ireland increased 2.7 times, surpassing global average in 2019

A new report issued today by EY reveals a near threefold increase since 2017 in the number of Irish consumers embracing financial technology (FinTech). The EY Global FinTech Adoption Index, which examines the FinTech industry and demand for these services globally, shows almost three-quarters of all Irish adults (71%) avail of FinTech services in one form or another, higher than the global average of 64%. Just two years ago Fintech adoption rates in Ireland stood at 26% – 7% below the global average of 33%.

According to the report findings, the main reasons Irish consumers are availing of FinTech services, instead of more traditional financial services, are due to more attractive rates and fees on offer (37%), ease of which to set up an account (22%) and access to different and more innovative products and services (18%).

Irish adoption is being driven by greater use of money transfer and payments (85%), insurance (63%), peer-to-peer payment and non-bank money transfers (76%) as well as insurance comparison sites (61%). FinTech use is higher among the younger generation and at its peak in the 25 – 34 age groups (80%) across all categories, except insurance and financial planning. The report also reveals a steady increase of FinTech proposition adoption across all categories, except borrowing, as Irish consumers incomes increase.

Non-adopters cite their limited understanding (39%), trust of FinTech challengers (29%) as well as greater wariness of digital processes and channels (8%) as the main reasons for not transitioning from more traditional transaction 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. Yet in contrast, Irish consumers are increasingly becoming more comfortable sharing their data with traditional financial services, FinTechs and non-FS companies. Similarly both adopters (69%) and non-adopters (68%) still prefer to interact with their bank through traditional methods, preferring the personal interactions to that of social media.

Commenting on the report, Niall Corrigan, Head of Digital & CX, EY Financial Services, said; “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. 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.

“Looking ahead, we see an increasingly ecosystem-driven approach towards managing consumer financial service. Demand for FinTech services are growing and the opportunity for innovative Irish FinTechs at home and abroad is strong and although some challenges have yet to be overcome, it seems that growth in the FinTech space will continue to reach new heights.”

Other findings from the report show:

FinTech adoption 72% male, 70% female
Adoption by education with 63% adoption below university level, 73% adoption at undergraduate level and 76% at postgraduate level

Irish consumers still see their main bank and insurance company as their first point of contact when buying a new financial product or policy. However, customers are increasingly willing to consider other options, particularly price comparison sites

Irish customers are also becoming more comfortable sharing their data with traditional financial services, FinTechs and non-FS companies
In regards to non-financial services companies providing financial products, almost half of consumers (47%) would be happy to use them if they were working

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