Fintech companies are new and innovative, focused on providing seamless digital technology services to customers. It isn’t much of a surprise then to find out the user base tends to be young and tech-savvy, with fintech businesses scouting for the most refresh talent straight from the business schools.
Report finds newly emerging economies most excited
Capgemini together with Efma published its World FinTech Report 2017 earlier, which examined how traditional and non-traditional financial services are faring around the world.
The survey was based on interviews of 8,000 financial services customers and industry experts in 15 countries. The highest number of customers using at least one fintech firm for financial services was in China. Nearly 85% of the customers in the country used non-traditional services for finances, while in the US the number was much lower at 45.8%.
The other countries with a high number of non-traditional service users were India and the United Arab Emirates. Furthermore, Generation Y users were the most active in adopting fintech services with 60% of the segment using non-traditional firms compared to just 44.4% of other generations.
Since fintech is based on technology and the use of digital technologies, it isn’t much of a surprise that over 67% of tech-savvy users have begun using these technologies. For non-tech-savvy users, the number is just slightly over 33%.
Interestingly, the person’s financial situation doesn’t seem to be as important in determining user base. Between affluent and non-affluent users, the affluent group forms the majority with 61%. However, nearly 50% of non-affluent people have also fallen in love with fintech services.
The survey also found that once a person starts using a fintech service, they are likely to start using more than one firm. 46.2% of users are utilising three or more providers with just 10.7% of respondents using a single service.
The most used sector is investment management, with payments and transfers following closely.
Fresh talent also an interest for firms
Young, tech-savvy-users aren’t just of interest to fintech firms because they are the main user base. The firms are also scouting for talent, focused on the business and financial sector.
The Financial Times reported on Monday how about a fifth of hires from Madrid IE Business School’s international MBA class were made by financial services firms. Out of those, 5% were by fintech companies. This is impressive considering the year before fintech made zero of those hires.
The article went on to note how high salaries are not luring graduates – the startup industry can’t offer much at the start – but the driving forces are professional enthusiasm and passion for changing things around. Neha Goel, a Wharton School graduate who’s joining fintech firm Braintree, told the newspaper, “Fintech, as its core, is about improving the system as a whole, furthering financial inclusion. And yeah, there’s also an element of making things cooler while we’re at it.”
It’s obvious the fintech sector is becoming increasingly attractive, not just for users but also new innovators. The great thing for innovation is how entry to use is not based on your finances and the new innovators are also not just hungry for quick money, but interested in changing the financial sector around.