Traditional Financial Institutions Still Consider Fintechs as Major Threat

Many financial institution businesses see fintech as a threat. At least, that’s according to a recent report by PwC, which says that 88% of incumbent FIs see themselves losing revenues to fintech innovators in the space.

According to PWC’s most recent report “Redrawing the Lines: FinTech’s Growing Influence on Financial Service,” that 88% number is 24% higher than it was last year.

According to the report, 82% of North American FI businesses believed that business is at risk in all verticals. That’s a 13% increase from last year’s 69%.

The solution to this fear, according to the incumbents surveyed by PwC ,is partnership and collaboration.

The report shows that 82% expect to increase their partnerships with fintechs in the next three to five years, while 77% of FIs said they will increase internal efforts to innovate.

The report is based on the responses from “PwC’s Global FinTech Survey 2017,” and consists of responses from more than 1,300 senior financial Services and finTech executives from 71 different countries.

The full report can be accessed here.

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