News

Emerging markets led the adoption of fintech services

Thursday 3 November 2016 11:11 CET | News

Across the globe, half of banking customers are using products or services of at least one fintech company, according to the first World Fintech Report (WFTR) from Capgemini, LinkedIn and Efma.

The report found that fintechs are gaining momentum and mindshare amongst younger, tech-savvy, and affluent customers. Moreover, emerging markets led the adoption where over 75 % of customers in China and India report using services provided by fintechs, followed by the UAE and Hong Kong.

While fintech providers continue to have a disruptive market presence, overall customer trust levels in these providers remain low. Only 23.6 % of customers say they trust their Fintech provider compared to 36.6 % for traditional firms. Customers noted traditional financial institutions still hold some advantage over fintech providers when it comes to fraud protection, quality of service, and transparency.

Traditional financial institutions continue to face challenges, with 44.0 % of executives confident in their fintech strategy. This is not surprising given that only 34.7 % affirmed they have a well-structured or proactive innovation strategy in place that is embedded culturally. The risk-averse nature of traditional companies also makes it difficult for them to create cultures that prioritize innovation, and 40.3 % of executives said that theirs is not conducive to innovation.

The report found that traditional companies are increasingly pursuing a wide range of strategies in response to fintechs. 60 % of financial institutions view fintechs as potential partners, but nearly the same percentage (59.2 %) are also actively developing their own in-house capabilities. Beyond in-house development and partnership, executives are exploring other models as well, such as investment in fintech (38 %), partnering with educational institutions (34.3 %) or setting up accelerators (29.6 %), while only 18.6 % are acquiring fintechs.


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Capgemini, Efma, online banking, mobile banking, emerging markets, fintech, banking, innovation, users, LinkedIn
Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
This article is part of category

Banking & Fintech