Cyber security 'greatest threat to FinTech adoption'

Cyber security has become the largest threat to FinTech adoption, according to a new report

A survey of more than 700 senior financial services decision makers in the UK, US and Europe by law firm Goodwin found that nearly half (47 per cent) ranked cyber security as the greatest challenge to the uptake of FinTech solutions.

A majority (54 per cent) of respondents ranked data and analytics as their top priority for FinTech adoption, while 22 per cent said that the need for clear regulatory and legal frameworks was a key driver for enabling FinTech innovation for their organisation.

More than a quarter (28 per cent) ranked private equity and venture capital - and banks and asset managers - as the top drivers of capital investment into FinTech over the next three years, with the report stating that capital from institutional funds and big banks is critical to enabling startup innovation.

While 39 per cent of respondents indicated that adoption of FinTech is a high priority for their companies, 29 per cent are reinvesting only 10 per cent or less of their profits into FinTech development, pointing to a gap between awareness and actual resources.

Scott Joachim, who co-chairs Goodwin’s FinTech practice, said: “As digital transformation of financial markets accelerates at breakneck speeds, fintech presents - in equal measure - significant opportunities and challenges for both investors and innovators around the world."

    Share Story:

Recent Stories


Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.

Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.