Klarna, MagnaCarta identify elements crucial to fintech development: new report

Friday 7 December 2018 11:26 CET | News

MagnaCarta and payments provider Klarna have published a new fintech report which identifies four key elements critical to the future development of fintech.

“Removing Roadblocks: The New Road of Fintech” identifies four key elements critical to the future development of fintech - relevance, openness, automation and data.

  • Relevance – organisations across the spectrum will need to understand their purpose and how to deploy technology to serve their customers

  • Openness to partnership and cultural candidness, including a firm grasp of the new dynamics of competition

  • Automation – understanding how, when and when not to automate processes

  • Data and it’s use and value either as a profit pool or a source of purpose

Fintech Disruptors 2019 surveyed 5,000 industry professionals across Europe, the Middle East and Africa. The report also provides strong evidence of a seismic shift in industry focus, away from new payments technologies and towards open banking and the application of artificial intelligence (AI) in fintech.

Findings from the report include:

  • Only 37% of respondents cited payments as a major future investment area for fintech, compared with 71% in 2018.

  • 57% identified AI, automisation and digitisation as a key future investment focus, with more than half also citing open banking as a major area for investment.

  • Established financial institutions are twice as likely as fintechs to deploy sophisticated data mining and interrogation techniques to their customer data.

  • Surprisingly few (10% of those surveyed) use customer data to try to interpret what further products customers would like.

  • 41% of fintechs say they use AI techniques in their business, compared to 43% of financial institutions.

  • Banks expressed record levels of interest in purchasing white-labelled fintech products for rebranding and use in their business (46% vs. 33% in 2018), and also in acquiring fintech companies (45% vs 22% in 2018).

  • Interest in partnering with fintechs, still high at 68% for 2019, but the lowest figure recorded in three years (2017=78%; 2018 = 73%).

  • Banks surveyed believe nearly a third of their overall revenues are at risk of being taken by fintechs.

For more information about Klarna, please check out a detailed profile of this company in our dedicated, industry-specific online company database.

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Keywords: Klarna, MagnaCarta, fintech, report, banks, digitisation, technology, artificial intelligence, payments , Open Banking
Countries: World