While I mentioned the huge growth of Chinese fintechs in a previous blog, I didn’t want to take away from the enormous growth that the US has seen in the fintech sector. In recent years, dynamic growth has not only presented consumers with new products, but it has also driven change across the entire US financial industry.
A recent study by EY Financial has shed some light on the biggest factors for fintech growth and their effects on the future of commerce in the US. Here is one of many takeaways:
One of the main things driving the growth and adoption of fintech in the US is awareness. Globally, 96% of consumers are aware of fintech offerings whether they be payment apps, alternative bank accounts, or insurance. Although US adoption of fintechs isn’t the highest globally, we have shown a steady year over year growth since 2017, peaking at 46% consumer adoption in 2019.
Where is the adoption the strongest? While three out of four consumers use fintech payments and transfer services in recent years, other fintech applications have also grown with insurance being the second-most used fintech. Part of the boost in insurance adoption surrounds the use of mobile apps to file claims and request assistance, coupled with companies rolling out devices to track your driving habits to give more accurate measurements to calculate your rates.
Among other applications, adoption has grown but budgeting/financial planning and borrowing are the two least used applications. Some experts speculate that the value of face to face interactions in those sectors could be the reason for slower adoption.
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