Rising adoption of Fintech products/services

Customers across the globe are embracing products/services from fintech firms

Banks are no longer the sole providers of financial products and services to customers as nearly two-thirds of the customers said they use products or services offered by fintech firms. Penetration of fintech firms is slightly higher in emerging markets along with customers having more relationships with fintech firms – indicating the gaps in the services provided by traditional banks. While the fintech phenomenon is being driven by young and tech savvy customers, the appeal for fintech firms is expected to intensify across all the age groups. This can have a profound impact on the way banks carry out their business in future.

Customer Reality Versus Bankers' Perception

Customers and Banks differ on the value proposition of fintech firms

As fintech firms make inroad into delivering products/services, banks will have to make assessment of the value proposition of these firms. While banks acknowledge that fintech firms are targeting the different aspects of the banking value chain, there is a significant disparity in how the customers and banks perceive the value proposition of fintech firms. Banks are underestimating the perceived value provided by fintech firms to customer and this may have a significant impact on how they can respond to this new phenomenon.