Financial Institution Opportunities and Threats from New Market Entrants

Financial Institution Opportunities and Threats from New Market Entrants

Proof Point

Financial institutions foresee opportunities as well as threats from both competing and partnering with emerging fintech companies

Financial Institution Opportunities and Threats from New Market Entrants

2016 (percentage)

Note: Data from PwC’s 2016 Global Fintech Survey of 544 participants involved in strategy and innovation from 46 countries across six regions

Proof Point Findings

  • FinTech – Use of digital technologies and innovation to support, enable or provide alternatives to traditional banking and financial services, such as mobile wallet, contactless NFC technology, and cryptocurrency
  • Significant Growth Opportunities – Cost reduction (73%) and differentiation (62%) top list of opportunities financial institutions see from rise of fintech, achievable through acquisitions and partnerships with new market entrants
  • Pressure and Loss Threats – Incumbents also becoming increasingly concerned with threats from emerging fintech companies, such as margin pressure (67%) and market share loss (59%)
  • Key Growth Drivers – Include proliferation of fintech services, growing adoption of digital banking technologies, emergence of partnerships between startups and incumbents, and rising consumer preference for faster, easier, and more convenient digital transactions

Accelerator

Market Disruption

Sector

Financial Services

Source

Date Last Updated

August 27, 2017

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