The financial services and technology industries converge in a way that impacts infrastructure and operations for existing and evolving business models. Examples include peer-to-peer payment technology and clearing and settlements solutions such as blockchain, which result in better, more customer-focused solutions at lower costs.
Financial institutions, like all other customer-centric businesses, must respond faster to innovation. In a recent PwC survey of the banking industry, 29% of respondents cited “research, development and innovation” as investment priorities. Many institutions have implemented initiatives or even launched dedicated labs to drive innovation. In our experience, however, such efforts alone may fail to deliver significant business results.
The rise of FinTech has created new opportunities for existing incumbents to leverage new technologies, partner with new market entrants and drive efficiencies.