Financial services firms would benefit from fintech strategies

Having a fintech strategy in place would be beneficial to financial services firms in the future, according to a report from professional services and Big Four firm KPMG.

The report, “Forging the future”, surveyed 168 finance firms from 36 countries.

Development

The report found that more than half (57 per cent) of financial institutions believe financial technology is the greatest source of disruption. However, just 46 per cent have a fintech strategy in place.

The report found 42 per cent of respondents have a fintech strategy that is under development, while 10 per cent have no strategy in place at all.

When it comes to innovation, over 70 per cent of financial institutions believe start-up businesses will be the greatest source over the next few years, while 53 per cent believe currency technology giants will be the main source of innovation.

The report also showed a lack of confidence among financial institutions when it comes to their company providing innovation, with just 36 per cent having faith in their company to do so.

Different

Commenting on how defining a fintech strategy could benefit financial services firms in the future, the report stated: “At the rate the industry is evolving, financial products and services – and the technological infrastructure behind them – will look remarkably different in a decade. Financial institutions that take the time to define their fintech strategy and align it to their future vision and business goals, will be best positioned to forge the future of financial services.”