Traditional Financial Institutions Embrace Fintech Disruption
April 23 2019 - 9:31AM
Business Wire
Mastercard-Sponsored Study Identifies
Opportunities for Growth, Partnership
As new technologies and regulations bring new opportunities and
challenges to the financial services industry, nearly two-thirds of
established companies are leveraging fintech capabilities for
growth, according to a new survey from Harvard Business Review
Analytic Services. That number is expected to increase by 20
percent in the next three years.
“In the Game: Traditional Financial Institutions Embrace Fintech
Disruption” surveyed 300 senior executives at financial services
companies to gauge their views on the opportunities and threats
brought about by newer, nimbler competitors that rely heavily on
specialized software, algorithms, and technology to offer their
services.
The Mastercard-sponsored study showed that traditional
institutions are “banking” on brand recognition, customer trust,
physical distribution channels, and experience navigating the
complex regulatory environments to maintain a competitive
advantage. In fact, nearly 80 percent do not feel an immediate
threat from fintechs, but are learning from their efforts.
“This report reinforces the importance of collaboration and new
partnerships in sparking innovation and new ways of working,” said
Michael Miebach, chief product officer of Mastercard. “Many
traditional companies are already using technology to improve their
business. Yet, there’s an opportunity to realize greater success by
thinking differently and combining experience with the agile nature
of fintechs.”
Over the long-term, every financial services company has an
opportunity to learn from today’s emerging fintechs, particularly
in the areas of agile business practices, digital-first business
plans and leading with an entrepreneurial mindset.
As they do, data and analytics will play an even more critical
role. Companies will increasingly use these capabilities to support
risk management and the customer experience. Data-driven companies
will have a greater advantage in terms of personalizing the
customer experience and boosting customer loyalty.
Additional insights and the full report are available at
http://go.mastercardservices.com/en/expert-insights/financial-institutions-embrace-fintech-disruption.
About Mastercard
Mastercard (NYSE: MA), www.mastercard.com, is a technology
company in the global payments industry. Our global payments
processing network connects consumers, financial institutions,
merchants, governments and businesses in more than 210 countries
and territories. Mastercard products and solutions make
everyday commerce activities - such as shopping, traveling, running
a business and managing finances - easier, more secure and more
efficient for everyone. Follow us on Twitter @MastercardNews,
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Seth Eisenseth.eisen@mastercard.com914-249-3153
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