PwC’s 2019 Global Fintech Survey polled over 500 financial services (FS) and technology, media and telecommunications (TMT) executives worldwide to figure out the factors that will determine the winners and losers in the race to develop and profit from Fintech-driven business models.
Analysis from the survey revealed that companies who have embraced Fintech are reshaping the marketplace and those that haven’t are being left behind.
Three-quarters of the FS and TMT executives surveyed said they’re stepping up their Fintech investment in the next two years. More than 90 percent are very or somewhat confident that Fintech will deliver revenue growth over the next two years. But focus, maturity, and speed to market vary.
“The really big changes have to be top-down. They have to be strategic. They have to be something that leadership, the board, and the executives are closely involved in and have decided the organisation needs to pursue,” Andrew S. Nevin, West Africa Financial Services Leader and Chief Economist PwC Nigeria said.
According to the PWC, FS, and TMT industries are using Fintech (financial technology) to sharpen operational efficiency, lower costs, improve customer experience, and heighten the appeal of their products and services. They are also carving out new commercial possibilities.
“Digital-only banks are offering redesigned client propositions and cost profiles. Investment managers are deploying fully customised robo-advice. Insurers are using sensors to monitor people’s health and drive illness prevention,” the financial service company said.
And according to the recent survey, consumers are ready for the digital shake-up, as such the question is no longer whether Fintech will transform FS, but the firms it will apply its best and emerge as leaders are now the focus.
The London-based organisation, therefore, recommended that FS should look to TMT for ideas about how best to use Fintech as the FS executives that were surveyed think that using Fintech to improve the ease and speed of their service will be key to retaining customers.
But people expect ease and speed, so firms that focus their Fintech efforts on these attributes might only meet customers’ expectations and not differentiate themselves, especially when competing with digitally sharp-intuitive TMT businesses, PWC stated.
Also from the survey, PWC was able to recommend that firms should push cross-sector fusion further– Among organisations that are planning to pursue an acquisition, strategic alliance or joint venture to drive growth via Fintech.
“At a time when FS firms are striving to sharpen their technology capabilities and TMT needs product and regulatory expertise to compete in the FS market, firms will miss opportunities if they don’t pursue more cross-sector cross-over,” PWC said.
