Fintech Innovation is Top Concern for Banks, EY Says in Banking Outlook Report
While regulations continue to be top of mind for financial institutions, banks have another main concern: the innovations and progress being made by fintechs, according to a survey released by EY.
Financial institutions need to be more aware of the effect fintechs—which provide “simpler, more convenient, more transparent” services, are having on the industry, EY stated in its Global Banking Outlook survey for 2018.
EY said in the survey:
Banks face increased competition from new market entrants, including digital banks and FinTechs. Leading banks are forced to respond, investing in technology to prevent customer leakage and preserve their value chain.
Such disruption is not restricted to emerging markets that lack traditional banking infrastructure. Banks in developed markets are equally at risk. The bottom line is that banks need to realize that competitive threats are continuing to evolve and prepare to battle these disrupters in the marketplace.
To learn more about fintech innovation, join us on March 5-6, 2018 at Bank Innovation 2018 at Parc 55 in San Francisco. Click here to request an invitation.
