Russia enters top-3 countries globally for the level of Fintech services penetration
EY Fintech adoption index for Russian megapolices has reached 43%, while world’s average constitutes 33%. The highest level is recorded for China - 69% and India - 52%. UK opens the list of European countries with 42%. EY index published in June 2017 covers the following indicators: money transfers and payments online, financial planning, savings and investments, loans and insurance. The index counts citizens that have used at least two fintech services in the last 6 months. According to EY, the average age of fintech service client is 38 y.o., while 66% of all clients are under 45 y.o. Interestingly, the level of fintech adoption in Moscow and S.Petersburg (46%) is not much higher than in other Russian million-plus cities. Also interesting is dynamcis, the index in Moscow and S.Petersburg has grown by 11% from the last year. Most popular fintech services in Russia are currently typical for developing countries: online payments (46%) and extra-bank cash transfers (89%). The share of those using fintech services on mobile platforms is expected to grow quickly from current 54% to 84%. In the same time, EY Russia is optimistic in that drivers of growth for fintech services in Russia are typical already for developed countries. Thus, quick growth is expected in areas of financial planning and expenses analytics, remote insurance products also including patient’s remote monitoring. Fintech services clients are active social media users (55% do it on daily basis) and messengers (61%).
Fintech solutions are in high demand in Russia both from client side and
from local investors. Banks and VCs seek for proven concepts and ready
to replicate working solutions from the western markets. Fintech is on
top of hype now, supported also by blockchain hype and declared
interest by the largest banks such as Sberbank. Good opprotunities to
raise money or sell working solutions to Russian banks and VCs.