The financial industry views fintechs as its greatest challenge and considers itself only moderately prepared, according to a recent study.
Fifty-seven percent of all respondents see fintechs as the main cause of disruption in the financial world. Startups are thus a future challenge for more respondents than growing global regulatory uncertainty (51 percent) and new business models (46 percent).
However, less than half of all financial institutions pursue a strict fintech strategy. Only a quarter feel well prepared for future challenges, and 10 percent are not currently considering integrating innovative technologies into their businesses. This is the finding of a study by KPMG. The management consultancy surveyed executives from more than 160 financial institutions in 36 countries.
Startups' greatest source of innovation
Nearly three-quarters (72 percent) of respondents believe that fintech startups will be the largest source of innovation over the next three years. 81 percent of companies are already collaborating with startups or plan to do so in the next twelve months. KPMG Partner Sven Korschinowski says:
"It can be observed that many companies in the financial sector struggle to develop an efficient and clear fintech strategy within their company in order to adequately address the disruption in this sector. Innovations in financial companies are often limited to individual functional areas, and a clear and overarching strategy is only implemented in very few companies."
