Introduction
Financial technology (FinTech) is steadily gaining traction worldwide, with new technology and services becoming available every day. According to KPMG’s 2016 global Pulse of Financial Technology (FinTech) Report (source), Venture Capital (VC) investment in the FinTech sector reached an all time high with a total of $13.6 billion across 840 financings in 2016, a seven percent increase from 2015. To better understand consumer adoption of and attitudes towards FinTech, Blumberg Capital commissioned a survey conducted by Harris Poll in France, Germany, Israel, United Kingdom (U.K.) and the United States (U.S.).
Israel
Israel is a leader in early FinTech adoption as the country most likely to use mobile banking apps and mobile wallets to make a purchase at least once a month and alternative financing and lending services.
35%
Despite increased news coverage of cybersecurity hacks and concerns, only 35% of those surveyed worry about being defrauded.
58%
While many consider cash to be an antiquated form of payment, the majority of respondents still use cash to make purchases at least once a week.
21%
Wide adoption of new mobile payment technologies have not yet penetrated all mainstream consumer groups. Just 21% of respondents use mobile wallet apps at least once a month.
20%
Most consumers stick to making purchases within their own country, with only 20% of respondents making online purchases outside of the country they live in at least once a month.
5%
Despite the increased availability of new lending/alternative services, only 5% of respondents have used one of these services in the last 12 months.
Israel Embraces
Fintech
Israeli adults are most likely to use a mobile banking app at least once a month
Israeli adults are more likely than others surveyed to use mobile wallet apps to purchase
goods/services at least once a month
Cash is Still
König
While many believe cash to be an antiquated form of payment, the survey revealed
cash may not be so outdated
German adults are most likely to use cash to make purchases at least once a week
What is Fraud Anyway?
As cybersecurity continues to dominate the headlines, there was a surprisingly low level of
concern among most countries surveyed given the current risk landscape
British adults, Israeli adults, and American adults are more likely than German and French
adults to worry about being defrauded (e.g., getting scammed, having identity stolen, having
accounts hacked) when they make financial transactions online.
Nationalism vs.
Globalization: Are transactions crossing borders?
Israeli adults are most likely to make online purchases outside of the country they live
in at least once a month
21% of British adults believe making online purchases outside of the country they reside
will become more expensive in the future
(i.e., goods/ services will cost more and/or there will be additional fees)
Are we ready to go
mobile?
50% of Israeli adults use a mobile banking app at least once a month
(e.g., to check account balances, transfer funds, make a mobile deposit)
27% of Israeli adults use mobile wallet apps to purchase goods/services at least once a
month
Financing &
Lending
7% of Israeli adults have used alternative financing/lending services within the last 12
months
(e.g., peer-to-peer lending, online lender, lease-to-own)
Key Findings:
Germany
75%
Germans love traditional payment via cash and are the most likely (75%) to use cash to make
purchases at least once a week. Far ahead of the British with 64% which are the second most
likely.
22%
However, Germans are also quite open to new forms of payment: 22% use mobile wallet apps to
purchase goods or service at least once a month. They are only more popular in Israel with
27%.
28%
Surprisingly, their bank’s apps don’t seem to catch their attention: Out of the countries
surveyed, Germans (28%) are the least likely to use a mobile banking app, with Israeli
adults (50%) leading the pack.
Key Findings:
U.K.
↓
U.K. consumers are the least likely to make an online purchase outside of their home country.
↑
U.K. is one of the highest cash-based population, second only to Germany.
1/3
A third of U.K. adults use a mobile banking app at least once a month.
↑
U.K. adults worry about fraud of financial transactions more than France, Germany and the
U.S.
4%
Only 4% of U.K. adults have used alternative financing/lending services in the last year.
18-24
If you’re aged between 18-24 — you’re more likely to pay with tech than with cash and much
less risk-averse when it comes to online financial transactions.
Key Findings:
France
48%
of French adults use cash to make purchases at least once a week.
35%
of French adults use a mobile banking app (e.g., to check account balances, transfer funds,
make a mobile deposit) at least once a month.
21%
of French adults use mobile wallet apps to purchase goods/ services at least once a month.
4%
of French adults have used alternative financing/lending services (e.g., peer-to-peer
lending, online lender, lease-to-own) within the last 12 months.
35%
of French adults aged 18-24 worry about being defrauded when they make financial transactions
online while only 28% of French adults aged 55+ share the same worry.
26%
of French adult males worry about being defrauded when they make financial transactions
online vs. 36% of French female adults.
Methodology
To better understand current cybersecurity attitudes and concerns, Researchscape International surveyed 1,012 U.S. adults about their technological devices, cybersecurity knowledge and top concerns. Respondents were quota-sampled using 32 different cells (gender by age by region) to closely match the overall U.S. population.
