Focusing on data analytics, mobile and AI technologies, FinTech companies are changing the market dynamics and 95 per cent of Indian financial institutions are expected to partner with FinTechs in 2017-18 to boost innovation, global consulting firm PricewaterhouseCoopers (PwC) said on Friday.
According to the PwC FinTech report ‘Redrawing the lines: FinTech’s growing influence on Financial Services’, 84 per cent of the respondents said they are driving internal efforts to innovate through FinTech.
“Eighty seven per cent of financial institutions consider startups to be source of disruption and a majority of the players say they are embracing FinTech and seek to utilise it to grow and transform their businesses,” said Vivek Belgavi, Partner and Leader, Fintech, PwC India, in a statement. “However, other entities like social media platforms and e-tailers have also been cited as the source,” Belgavi added.
Sixty seven per cent of Indian financial institutions consider non-traditional FinTech companies a threat to their business. This number is slightly lower than the global average of 80 per cent, perhaps an indication that the market in India is not yet as matured as it is globally, particularly in the non-payments segments, the report added.
Most incumbents in the industry are focused on data analytics, Mobile and AI technologies because so far, many of them have found it difficult to manage their data and offer customer-centric and insights driven digital services.
“But developments around emergent technologies like chatbots, natural language searches and digital KYC can enable them to enhance and expand their portfolio of services,” the report said.