Tipalti Reveals Fintech Adoption Rates Over Time, With Insurtech Seeing The Biggest Growth
With Fintech adoption more relevant than ever, a study by Tipalti has revealed how adoption rates have changed over time, with insurtech seeing the biggest growth in adoption from 2015 to 2019. Tipalti analysed the adoption rates for fintech subsectors such as insurance, and borrowing between 2015 and 2019 to discover how fintech adoption rates have changed.
How fintech adoption rates have changed over time:
Fintech adoption rates have increased dramatically from 2015 to 2019 as the finance sector continues it’s digital transformation. In fact, in 2021, 86% of consumers in the UK used fintech to manage their finances, and around 48% of people in the US used fintech in 2022.
Of the subsectors in fintech, insurance, also referred to as insurtech, has seen the biggest growth in adoption from 2015 to 2019.The global adoption rate for insurtech was just 8% in 2015; by 2019, it had grown to 48%. During that same period, insurtech averaged a 150% adoption growth rate.
Borrowing in the fintech sector has also seen a massive increase in adoption rates, averaging a 118% growth rate between 2015 and 2019. Fintech borrowing has certain advantages over traditional bank borrowing, as they don’t solely rely on your credit score, and the processing time is generally quicker and more streamlined.
Further research shows:
North America is the region with the highest amount of venture capital funding into its fintech industry as of 2022. Of the global capital funding that has gone into fintech in 2022, 56.3% has gone specifically to the North American fintech market.
Japan had the lowest adoption rate of fintech amongst the country’s digitally active population, at just 34% as of 2019. This sees Japan lagging behind other countries in Asia, such as China and Singapore. However, this is largely due to the innate nature of Japan’s financial environment, which is extremely conservative and risk-averse. As a result, fintech investment is very low in the country.
China emerges as the country with the highest fintech adoption rates. As of 2019, 87% of China’s digitally active population has adopted the use of fintech. Tied with India, these two countries have been leading the fintech market for years.
You can view full research by Tipalti here.
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