Roland Berger, in cooperation with Holland FinTech, conducted a survey amongst FinTechs to find out more about the future of FinTechs and how they might disrupt the competitive landscape of banks and insurers. These are the most important takeaways:
- Trends around digital customers, new technologies, regulation and general market environment currently offer good conditions for FinTechs.
Most of the FinTechs are very young, confident and focused on parts of the value chain – Many solutions are not yet disruptive and their success is yet to be proven in the market.
- FinTechs partially profit from a smaller regulatory burden and the established companies’ “legacy burden” – But this might change and cause a shakeout.
- In the medium term additional pressure will come from tech giants. FinTechs are seeking cooperation with banks/insurers – A potential win-win situation.
- Banks and insurance companies need to be open to new solutions and learn from FinTechs’ working methods – However, they must manage their digitization largely by themselves.
According to the survey the future of FinTechs is very positive. The FinTechs realize that they are innovative but they cannot revolutionize the industry alone. For FinTechs it is important to note that they should not rely on market conditions and ensure a sustainable business model. For banks and insurers it is important to realize that they have to manage their digitalization themselves, where FinTechs might offer solutions or possible partnerships.
To read the full report, click here.