A new PWC Global Fintech Report has revealed widespread concern among bank executives as fintech’s influence on financial services continues to rise
A recently released PWC Global Fintech Report, which surveyed 1,308 financial services and fintech executives has found that mainstream financial institutions are embracing fintech and rapidly forging partnerships to respond to customer demand for more innovative services.
In a significant change from previous years, where startups have wanted to compete with incumbents, the report also found that fintech startups are looking to partner with established financial service providers.
Commenting on the report, Steve Davies, EMEA Fintech leader at PwC, stated,
“The financial services industry has now fully embraced FinTech to help drive change and innovation. Activity ranges from partnering with FinTechs startups, financing in-house incubators, and deploying new solutions, to testing use cases in areas like blockchain. Sustained focus on innovation is much needed and can only be a good thing for firms and their customers.”
- Consumer banking will continue to remain at the center of disruption over the next five years, according to 80% of respondents.
- Intuitive product design, ease of use, 24/7 accessibility, and faster services are viewed as the most critical areas to address customer retention.
- More than 82% financial services companies plan to increase fintech partnerships in the next 3-5 years
- 54% of bankers are turning to fintech companies to engage in partnerships vs. 42% last year.
- 64% of bankers see personal loan services most at risk in moving to a fintech company.
- 77% plan to increase internal innovation, while 63% of bankers see the rise of fintech as an opportunity to expand products.
- 30% are investing in artificial intelligence.
- 77% expect to adopt blockchain technology in some form or another by 2020
- Fintech startups have seen $40 billion of cumulative investment globally over the past four years.
Full report here [PWC]