Financial institutions feeling fintech heat, says PwC study
PWC study says that the Financial institutions are growing at risk of losing business to fintech innovators.
It added the officials are also viewing to explore partnerships with the some new entities to foster innovations.
Starting with payments and fund transfers the consumers in India are likely and increasingly getting attracted to non-traditional financial service providers.
According to the Report of PwC’s Global FinTech, 67 percent of the officials believe that their business are at a risk from financial technology (fintech) firms and are as many as 95 percent of officials seek to explore fintech partnerships to boost innovations.
PwC India Leader of FinTech, Vivek Belgavi said that bulk of the players says that they are acceptance of FinTech and seek them to utilize it to grow and transform their businesses. FinTech to them has really been about the interplay between different players in ecosystem and how they work together to disturb the Financial Services industry.
67 percent of financial institutions in India are acknowledged that non-traditional fintech possess a threat to their businesses and that are lower than the global average of 80 percent that indicates the market in India is not yet as matured as it is globally.
In the report issued, the consumer banking, fund transfers and payment are the segments which have already witnessing the disruption with extreme number of consumers has already been utilizing the services of fintech players in these segments.
It added that the rest of the segments like lending and wealth management are supposed to follow the suit.
The entities that are mostly liked to upset the industry are intuitively start-ups. Though, some other entities like e-tailers and social media platforms have also been cited as the source of disruption.
The analysis have given this report based on a nationwide survey that were conducted on 45 Indian financial services and fintech executives and mapped against a global survey of 1,308 participants from 71 countries and which also includes proprietary data and insights from PwC’s DeNovo platform.