It was on this date, July 11, in the year 1804 in Weehawken, New Jersey, that Alexander Hamilton, architect of the American financial system, met his fate at the hands of Aaron Burr. Some would argue that the financial services industry has changed very little since then. Change has some slowly to financial services, and innovation has proceeded at an evolutionary, some would say glacial, pace. That may be changing however. Recent decades have born witness to the introduction of technology solutions that have accelerated the transformation of consumer experience.
Financial technology ("FinTech") generally refers to digital innovation in the financial sector. At its inception, the understanding of FinTech was limited to innovative ways of facilitating payments and transactions. Underpinned by revolutionary shifts in Internet and mobile technology in recent years, the realm of FinTech has witnessed explosive growth. Nowadays, it refers to a wide variety of technological interventions within the financial services arena, such as crowdfunding, online customer acquisition, mobile wallets, P2P lending, MPOS, MSME services, personal financial management, private financial planning, Blockchain and crypto currencies. Given the opportunities that FinTech affords, many technology companies have been actively trying to tap into the financial market.
FinTech is all about innovation, disruption and transformation, and will undoubtedly impact and shape the way financial institutions around the world operate. Explore the key themes of our report, as well as in our Executive Summary, and download the Global report to find out how senior financial services and FinTech executives around the world prepare their organisations for the impact of FinTech.
Established financial institutions and fintechs are increasingly working together. LONDON -- PwC says the financial services establishment has moved from viewing fintech startups as an amusing aside to seeing them as crucial collaborators, with a huge proportion hoping to partner with new innovators in the future. In its latest Global Fintech Report, published on Thursday, PwC says that 82% of incumbents it surveyed plan to increase collaboration with fintech companies over the next three to five years. "Mainstream financial institutions are rapidly embracing the disruptive nature of fintech and forging partnerships in efforts to sharpen operational efficiency and respond to customer demands for more innovative services," PwC says in its report. The "Big four" consultant surveyed 1,308 financial services and fintech executives from around the world for its latest report.