New Delhi, Nov 10 (PTI) The level of financial technology(FinTech) adoption among digitally active Indian consumers hassurged over the past two years and exceeded the globalaverage, says a report.
According to EY FinTech Adoption Index, India has thesecond highest FinTech adoption rate among digitally activeconsumers at 52 per cent, only second to China at 69 per cent.
Usage is significantly high in large cities with a 66 percent adoption rate followed by 51 per cent usage and adoptionin small and medium cities.
"Rural India lags at 33 per cent which is expected tochange over the next few years on account of several digitalinitiatives undertaken by the Government to drive financialinclusion and direct delivery of benefits," the report said.
Money transfers and payments services leading the chargein India with adoption standing at 72 per cent in 2017.
Insurance is the next popular category with an adoption rateof 47 per cent, much higher than the global average of 24 percent.
"The EY FinTech Adoption Index finds, more than half ofthe sampled Indian consumers claim to have used over twoFinTech products in the last six months," said Mahesh Makhija,Partner, Financial Services Advisory Services, EY India.
The demographic most likely to use FinTech aremillennials – 25 to 34 years old, followed by the 35 to 44year old.
There is, however, also growing adoption among the oldergenerations: 56 per cent of respondents between 55 to 64 yearsold and 27 per cent of those between 65-74 years said theyregularly use FinTech services.
The key reasons for increased adoption have been theease of setting up accounts (31 per cent) when compared withthe traditional financial services, access to a wide range ofofferings (19 per cent) with quality service (13 per cent),the report added. PTI DRRMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.