FinTech: What holds the most potential for progress?
FinTech has clear strong potential for growth, though one of the barriers to more widespread adoption is the need for regulatory compliance at a time where the rate of development in some of the technologies has outstripped the regulatory framework meant to govern it.
Our 2018 European Tech Index reveals:
FinTech promises functionality, flexibility and faster growth
Better functionality (55 percent) and more flexibility (43 percent) remain the top two benefits among respondents in 2018. For financial services companies themselves, faster company growth was viewed as the key benefit overall (42 percent).
Declining drawbacks of FinTech implementation
Drawbacks have significantly declined, including disruption caused (down to 31 percent in 2018 from 45 percent in 2016) and integration with legacy systems (down to 24 percent from 32 percent). Businesses are integrating new FinTech systems with greater ease, perhaps due to greater experience.
Regulatory compliance remains the key challenge
While businesses are keen to leverage FinTech as a source of growth, there are very real concerns about meeting regulatory requirements (cited as the leading drawback by 53 percent of respondents).
Areas with the most potential to unleash value for customers
A new question in the 2018 survey and the answers are an interesting mix, with cybersecurity (33 percent), blockchain (26 percent) and data analytics (24 percent) as the top three. Given cybercurrency uses blockchain technology, it is remarkable that only 14 percent of respondents cited initial coin offerings.