FinTech and Financial Services team up
PwC’s Global FinTech Report 2017 shows that FinTech and Financial Services are competing less and instead building more partnerships to turn threats into opportunities: 82% of Swiss respondents plan to increase partnerships over the next three to five years. The report concludes that the Swiss Financial Services industry can largely benefit from FinTech innovation in a number of areas and that 75% of Swiss respondents plan to adopt blockchain applications over the next three years.
FinTech startups have seen $40 billion of cumulative investment globally over the past four years according to PwC’s DeNovo platform. Funding in blockchain companies increased 79% year-on-year in 2016 to $450 million globally. PwC’s Global FinTech Report concludes that from the 30 surveyed Swiss respondents, 40% believe their core business is at risk in the next five years. Yet an expected threat was reported as 70% of Swiss respondents predict increased price competition. How is the Swiss Financial Services industry handling the threats posed by FinTechs? Dr. Daniel Diemers, Partner Financial Services PwC Strategy& Switzerland says, "In Switzerland, we have a relatively small, fragmented market, with intense competition and high barriers to entry. The perceived threat by FinTechs is comparatively less dramatic than in other markets. The focus here is more on wealth management, an area that sees disruption today as less imminent than retail banking or payments. However, the trends will clearly disrupt all areas of Financial Services in the coming 5-10 years, including Swiss private banking and wealth management."