Digital disruption is the top-of-mind technological issues in the C-suite today. Senior executives in virtually every industry are wondering whether their firm will be Amazoned or Ubered. Others take a more nuanced view that new digital players might skim off their best customers or steal a share from their most profitable product lines. All are trying to determine whether they should ignore, acquire, partner or compete with their new technology-driven competitors.
One of the most publicised disruptive challenges is the one posed to the multi-trillion-dollar banking industry by financial technology upstarts, known as "Fintech." More than $25bn has been poured into Fintech in the past five years, making it the number-one target for venture funding. An estimated 4,000 firms are challenging banks in every product line in their portfolios—from payments to lending to foreign exchange.
In order to develop a fact-based perspective, The Economist Intelligence Unit (EIU), sponsored by Hewlett Packard, has conducted parallel surveys of more than 100 senior bankers and 100 Fintech executives. The objective is to determine their respective views on the impact of Fintech, the strengths and weaknesses of the participants and the likely landscape for the retail banking industry over the next five years.
Date Published: October 20th 2015