PwC report shows fintech’s growing influence on financial services
years and expect an average return on investment of 20 per cent on their innovation projects, according to a new PwC report
A large majority of global banks, insurers and investment managers intend to increase their partnerships with fintech (financial technology) companies over the next three to five
“Redrawing the lines: FinTech’s growing influence on Financial Services”, drawing on a survey of over 1,300 respondents globally, shows clear signs the finance industry is getting to grips with innovation.
One driving factor behind these partnerships is an increasing fear within the industry that revenue is at risk to stand-alone fintechs, with 88 per cent of financial services respondents seeing it as a real threat, against 83 per cent in 2016.
On average, up to 24 per cent of revenue is thought to be at risk, the survey found.
As a result, a mutual understanding is emerging between the two parties, with fintech start-ups requiring the access to capital and customers provided by incumbents, and big financial firms starting to understand how fintech could be the key to finally overcoming legacy technological and customer communication issues, said Manoj Kashyap, Global FinTech leader at PwC.
