As new technologies and regulations bring new opportunities and
challenges to the financial services industry, nearly two-thirds of
established companies are leveraging fintech capabilities for growth,
according to a new survey from Harvard Business Review Analytic
Services. That number is expected to increase by 20 percent in the next
three years.
“In the Game: Traditional Financial Institutions Embrace Fintech
Disruption” surveyed 300 senior executives at financial services
companies to gauge their views on the opportunities and threats brought
about by newer, nimbler competitors that rely heavily on specialized
software, algorithms, and technology to offer their services.
The Mastercard-sponsored study showed that traditional institutions are
“banking” on brand recognition, customer trust, physical distribution
channels, and experience navigating the complex regulatory environments
to maintain a competitive advantage. In fact, nearly 80 percent do not
feel an immediate threat from fintechs, but are learning from their
efforts.
“This report reinforces the importance of collaboration and new
partnerships in sparking innovation and new ways of working,” said
Michael Miebach, chief product officer of Mastercard. “Many traditional
companies are already using technology to improve their business. Yet,
there’s an opportunity to realize greater success by thinking
differently and combining experience with the agile nature of fintechs.”
Over the long-term, every financial services company has an opportunity
to learn from today’s emerging fintechs, particularly in the areas of
agile business practices, digital-first business plans and leading with
an entrepreneurial mindset.
As they do, data and analytics will play an even more critical role.
Companies will increasingly use these capabilities to support risk
management and the customer experience. Data-driven companies will have
a greater advantage in terms of personalizing the customer experience
and boosting customer loyalty.
Additional insights and the full report are available at http://go.mastercardservices.com/en/expert-insights/financial-institutions-embrace-fintech-disruption.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com,
is a technology company in the global payments industry. Our global
payments processing network connects consumers, financial institutions,
merchants, governments and businesses in more than 210 countries and
territories. Mastercard products and solutions make everyday commerce
activities – such as shopping, traveling, running a business and
managing finances – easier, more secure and more efficient for
everyone. Follow us on Twitter @MastercardNews,
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190423005605/en/