Many global FS firms ‘lacking a FinTech strategy’
Written by Chris Lemmon
Only 46 per cent of global financial institutions have a FinTech strategy in place, despite 57 per cent of institutions claiming that FinTech is the greatest source of disruption, according to a new report from KPMG.
Furthermore, less than half of those believe that their strategy is well aligned with the challenges posed by FinTech. Some 42 per cent have a strategy under development, while one in 10 firms have no FinTech strategy at all.
Partnerships are driving FinTech activity with 81 per cent of firms planning to build partnerships in the next 12 months. Over 70 per cent of respondents ranked ‘enhancing customer service’ as a top objective for their FinTech strategy.
Murray Raisbeck, global co-leader of FinTech at KPMG International, said: “We’re seeing many financial institutions continue to struggle to build and execute a comprehensive strategy around FinTech. In many cases, FinTech innovation is left to individual functional areas, without any kind of overarching strategy across the organisation.”
Jon Holt, head of financial services at KPMG UK, added: “As customers our definition of convenient has shifted: we expect things in an instant and to be at the tips of our fingers 24/7. Financial services firms are no longer just competing with one another, they have to deliver the type of positive customer experience delivered by other sectors such as retail and this is a major challenge for a sector which has grown-up with infrequent and often indirect customer interaction.
“For me, one of the most interesting findings in today’s report is that 78 per cent of firms say their FinTech strategy includes partnering with other large non-financial institutions.”