70% Of Bankers See Fintech Making Significant Impact On Banking

The Fintech revolution has grown rapidly in recent years, and it appears as if it will not be going away anytime soon.

How much of a threat does Fintech pose to traditional banks? A new survey of 100 Fintech executives and 100 senior bankers conducted by the Economist Intelligence Unit (EIU) and sponsored by Hewlett Packard Enterprise shed some light on where Fintech is headed and if big banks should be worried.

Here’s a look at some of the key findings from the survey.

Among the 100 bankers surveyed, 70 percent see some form of major disruption ahead from Fintech, although only 5 percent believe that Fintech will eventually dominate the space.

When surveyors asked how banks are responding to the Fintech challenge, more than half of bankers (54 percent) and Fintech execs (59 percent) reported that they believe banks are currently not doing enough to maintain a competitive advantage.

In terms of openings, bankers see clear digital strategic vision as the biggest weak spot for banks, an area in which Fintech companies excel. In terms of technology, the biggest self-reported banking weakness is data security.

Conversely, when bankers were asked about banks’ strengths in competing against Fintech, reputation for stability and customer loyalty were the two biggest advantages reported.

On the Fintech side, execs report lack of experience in risk management and lack of investment capital as the two biggest weaknesses that Fintech has when competing against banks.

When it comes to strengths, Fintech execs report limited product sets and the absence of legacy systems as their two biggest advantages over banks.

Finally, in terms of banking segments, surveyors asked Fintech executives which banking segments will be most impacted by Fintech in coming years. They reported that deposits and small business loans will be most dominated by Fintech, while auto loans and mortgages will likely be least-dominated by Fintech.