PwC’s New Zealand Global FinTech Report says that startups are taking up too much of the limelight when it comes to FinTech - and established companies are missing out on other sources of disruption.
100% of New Zealand respondents said that startups will be the most disruptive force in financial services over the next five years - far above the global average of 75%.
In addition, 85% of respondents say they’re partnering with FinTech startups to outsource talent instead of focusing on their own agendas. This is well above the 45% global average.
Andy Symons, PwC’s financial services leader, says that in five years time we might not even be talking about FinTech anymore, as it will be embraced by everybody — including established organisations.
“This makes me think that in five years we won’t be talking about FinTechs anymore. The FinTech revolution won’t just be driven by start-ups. It will come from the established competitors you thought you knew, but who are already a step ahead in transforming their businesses to meet changing customer expectations,” he says.
While there’s still a difference between FinTech startups and established organisations will disappear as startups mature and organisations form their own transformation strategies, he says.
“Where today’s corporates aren’t focussing is on their existing competitors – our global respondents were twice as likely to predict disruption coming from existing financial service institutions as our New Zealand survey participants,” he explains.
PwC says that organisations must look beyond partnerships with FinTechs and instead create a two-speed innovation strategy if they want to survive.
Combining innovation with existing expertise will enable innovation, creativity and digitally-savvy businesses that can move forward for future growth.
The Report gained opinions from 544 CEOs, heads of innovation, CIOs and management in 46 countries, including New Zealand.