Insurers, banks and asset management companies believe technologies such as artificial intelligence, blockchain and the Internet of things are redefining the nature of their services more than anything else.
That is according to new research by KPMG, which finds that growing global regulatory uncertainty is the next greatest source of disruption today, followed by new business models.
However, a worldwide survey of financial institutions by the professional service company found that only 46per cent have a clear FinTech strategy in place, while 10 per cent have no plan to tackle the threat of technology at all.
“In many cases, FinTech innovation is left to individual functional areas, without any kind of overarching strategy across the organisation,” KPMG International, global co-loader of FinTech, Murray Raisbeck, said.
It was also found that, of those that do have a blueprint in place to counteract the disruption of technology, just 47per cent believe it is well aligned with the challenges posed by FinTech today.
Over 70per cent of the respondents to the survey ranked enhancing customer service as a top objective for their strategy, while transforming existing capabilities was identified as the second most important target.
“However, as the sector matures, we expect to see a greater focus on middle and back-office functions and capabilities which will drive greater efficiencies and can also improve customer and regulatory outcomes.” KPMG International global co-leader of FinTech, Ian Pollari, said.
The survey also finds that partnering up with other companies has been driving FinTech activity, with 61per cent of the respondents saying their institutions have done so in the past, and 81per cent plan to.
Some 72per cent believe financial technology start-ups will be the main source of innovation over the next three years, however, a similar say they will be partnering with other large non-financial businesses.
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