SEOUL, May 2 (Korea Bizwire) — Nearly 90 percent of financial firms worldwide said their businesses are at risk from rapidly expanding fintech rivals and they fear losing revenue to the financial innovators, according to a new study released on Monday, in the latest sign of the growing influence of financial technology, known as fintech.
The study conducted by global consulting firm PricewaterhouseCoopers said that many fear losing business to innovators, starting with payments, fund transfers and personal finance.
“The vast majority (88 percent) of participants indicated that they are worried that part of their business is at risk to standalone fintech companies,” PricewaterhouseCoopers said in a report posted on its website.
It said more consumers will adopt nontraditional financial services providers and early adopters will most often conduct payment and money transfer activities with nontraditional providers. Personal finance will emerge as the next most populous activity at risk.
The report also showed that consumer banking will continue to be the epicenter of disruption over the next five years.
Most bankers see personal loans (64 percent) and personal finance (50 percent) most at risk to move to a fintech company, though 63 percent of bankers see the rise of fintech as an opportunity to expand products and services.
“Cutting-edge fintech companies and financial innovation are changing the competitive landscape, and are redrawing the lines of the financial services industry,” the report said.
PricewaterhouseCoopers said that 82 percent of respondents on average expect to increase partnerships with fintech companies over the next three to five years.
PricewaterhouseCoopers said the Global FinTech survey was based on responses from 1,308 participants from 71 countries in senior management positions of such financial services industries as banking, asset management, fund payments and insurance as well as fintech.