Redrawing the lines
81% of Belgian incumbents expect to increase FinTech partnerships in the next three to five years.
of Financial Institutions will increase internal efforts to innovate
have put disruption at the heart of their strategy
expected annual ROI on FinTech related projects
of respondents are investing in Artificial Intelligence
Financial Institutions and FinTech companies are moving closer together and redrawing the lines that separate them. Financial Institutions have begun to look inward, driving internal innovation through partnerships with FinTech companies, innovations and technological developments.
The insights in this report are based on the responses of over 1,300 senior Financial Services (44 in Belgium, mostly c-suite). The report is also fuelled by proprietary research from PwC’s DeNovo, focused on FinTech innovation and its impact on financial institutions.
FinTech is a driver of disruption in the market. Financial Institutions are increasingly likely to lose revenue to innovators, with 79% believing that this is already occurring in Belgium.
Financial Institutions are learning to partner and integrate
FinTech companies create an ecosystem that fosters the collection of vast amounts of data and builds trusted relationships with clientele. Financial Institutions have realised the potential of this and are increasingly partnering with FinTech companies.
Currently, 69% of participants are partnering with FinTech companies in Belgium. A further 81% have indicated that they are planning to do so in the next three to five years. These partnerships, although challenging, allow them to accelerate their plans for innovation.
"Embracing Fintech is as much about different ways of working and problem solving as it is about deploying new technology."
Incumbents see regulations as barriers to change and a source of uncertainty. The main regulatory barrier to innovation, as indicated by 54% of participants, are data storage, privacy and protection.
They further identified digital identity authentication and AML/KYC issues as the second and third most concerning barriers, at 50% and 48% respectively.
In Belgium the barriers are a bit different. AML/KYC is seen as most important than Data Storage, Privacy and Protection.