PwC's insights on FinTech
FinTech has had a remarkable impact on the financial services industry in the past year. Financial services companies are realising the threat as well as opportunities that FinTech players bring, causing them to engage and redraw the lines that separate them. Financial institutions have begun to look inward, driving internal innovation through partnerships with FinTech companies, innovations and technological developments.
This report is based on the responses of over 45 senior financial services and FinTech executives from across the country. Explore our analysis of how FinTech and financial services are moving closer, with financial services evolving in response to FinTech.
Partner and India FinTech Alliances and Ecosystem Leader, PwC India
Key findings: Click on tabs below to explore
- Businesses at risk from innovators
- Innovation through FinTech partnership
- Financial institutions to embrace disruption
- Blockchain moving out of the lab
- Key FinTech capabilities
Businesses at risk from innovators
FinTech is the instigator of disruption and innovation in the financial services industry. Financial institutions are increasingly at risk of losing business to FinTech innovators, with 67% already feeling the heat.
Consumer banking and payments and funds transfers are the segments which are already witnessing disruption, with a maximum number of consumers already utilising the services of FinTech players in these segments. The rest of the segments—especially lending and wealth management—are poised to follow suit.
Innovation through FinTech partnership
A whopping 95% of incumbents in the financial services industry believe that the innovation they seek can be brought about by engaging in FinTech partnerships.
The additional edge that innovative FinTechs, who are free from regulatory and legacy baggage, can provide through partnerships is something that incumbents are aggressively seeking to capture.
Financial institutions to embrace disruption
To remain competitive in the volatile environment that is gripping financial services, a majority of the respondents in our survey say that disruption is at the heart of their strategy. They are seeking to innovate in myriad ways to stay ahead of the curve of FinTech disruption. Further, 84% of the respondents say that they are driving internal efforts to innovate through FinTech.
Blockchain moving out of the lab
Most of the financial services players are expected to adopt the blockchain in some part of their businesses in the next three to five years.
The three key areas that the blockchain will have a notable effect on are payments/funds transfer infrastructure, digital identity management and post-trade settlements.
Key FinTech capabilities
The focus for FinTech investments is slated to revolve around data analytics, mobile and AI. Data analytics and mobile are more contemporary capabilities that each player in the industry is spending on to remain competitive, However, several players are also focusing on revolutionary technologies like AI, cyber security, robotic process automation, biometrics and identity, blockchain and Internet of things.
Hear from our leaders
Our India leaders and FinTech experts share some insights and key trends from PwC's latest report Redrawing the lines: FinTech's growing influence on financial services (India FinTech Survey 2017).
InsurTech trends in India
Joydeep K Roy Partner, India Financial Services Advisory Leader and Global Health Insurance Practice Leader
Security imperatives for organizations
Siddharth Vishwanath, Partner, Cyber Security
Evaluating alternate credit risk models
Kuntal Sur, Financial Services, Risk and Regulatory Leader
An evolving governance function
Vivek Iyer, Partner, Risk Assurance Services
Related Content
Follow us
