Banks fear losing business to fintech
More than three quarters of banks are concerned that part of their business will be lost to fintech companies, according to a new survey by PwC.
New entrants to the financial industry have identified customer frustration with banks as an opportunity, and banks fear being bypassed by start-ups, the report says.
"Customers want convenience, personalisation, accessibility and ease of use. To live up to these expectations, banks and fintechs should focus on opportunities that leverage each other's strengths, whether in product design and development by start-ups, or distribution and infrastructure capabilities by banks," said PwC Ireland fintech leader John Murphy.
"Fintechs are great at offering product simplicity and seamless integration, but they lack the proper IT security and regulatory certainty that banks have. We see both sides coming to the realisation of a new, mutually beneficial relationship and it's ultimately the customer who will benefit the most from this," he added.
More than four in 10 of the 163 banking respondents said they were already involved in partnerships with fintech companies. PwC Ireland head of advisory Ciaran Kelly said banks should prioritise simplifying their products to reduce customer confusion.