• Register
Return to: Home > News > Assurance and Accounting > FinTech’s fast-growing influence on Financial Services raises concerns

FinTech’s fast-growing influence on Financial Services raises concerns

Eighty percent of financial executives believe that business is at risk with 88% being increasingly concerned that they are losing revenue to innovators, according to a PwC global report.

The PwC report was based on a global survey of 1,308 financial services and FinTech executives and includes insights and proprietary data from PwC’s DeNovo platform. According to research from the platform, funding of FinTech startups has increased at a compound annual growth rate of 41% over the last four years.

Financial Institutions are embracing the disruptive nature of FinTech as 77% will increase their internal efforts and integrate. The majority of global financial services companies (82%) plan to increase FinTech partnerships.

Currently, respondents believe their consumers already conduct payments (84%), fund transfers (68%) and personal finance (60%) with FinTech, among other activities. The activities most at risk of moving to FinTech companies over the next five years were payments (68%), personal loans (58%), fund transfers (56%) and wealth management (52%).

According to respondents the opportunities most related to the rise of FinTech were the expansion of products and services (60%) and leveraging existing data and analytics (46%). Of respondents, 77% expect to adopt blockchain as part of their system or process by 2020.

The top three regulatory barriers to innovation were AML/KYC (59%), data storage privacy and protection (56%), and a new business model such as crowdfunding (44%).

When working with FinTech companies the main challenges that respondents faced were regulatory uncertainty (50%), IT security (46%), differences in knowledge or skills (38%) and differences in management and culture (38%). When working with traditional financial companies the key challenges faced are differences in management and culture (64%), regulatory uncertainty (55%), and differences in operational processes (45%).

The full PwC global FinTech report can be found here.

Top Content

    South Africa: sensing new opportunities

    It has been an interesting couple of years for the profession in South Africa. A number of high-profile scandals have brought the profession and the role of auditors into sharp public focus, brewing a distrust towards accountants and a large expectations gap. Joe Pickard reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.