Home about us Challenges Services Publications Newsletter Events Career Austria International PwC Sites FinTech: The new competitors FINTECH How FinTech is changing the FS industry from 03/15/2016 FinTech companies are causing upheavals in all segments of traditional financial service providers: 83% of traditional financial institutions expect business losses from FinTechs. The rapidly growing group of young, innovative financial technology companies (FinTech) forms the classic financial sector. Around 83 percent of established financial service providers fear that parts of their business will be lost to FinTech companies. In the case of banks, this proportion even amounts to 95 percent, according to the study "Blurred Lines: How FinTech is Shaping Financial Services" . "FinTech means a paradigm shift. The traditional intermediary roles are made obsolete, "explains Dieter Harreither, Partner and Head of Technology Consulting at PwC Austria." FS companies have previously acted as intermediaries in the financial system and provided valuable services for their customers. Now, however, their role is being taken over by new technology-based business models " says Harreither. Further results: Study participants from the payments sector expect to lose up to 28% of their market share to FinTechs in the next five years 67% named pressure on their profit margins as the greatest threat in connection with FinTechs, closely followed by loss of market share with 59% According to conventional FS companies, the greatest challenge when working with FinTechs is IT security (53%) The most common form of collaboration with FinTech companies is in the form of collaborations (32%) Estimates for global investments in FinTech are well over USD 150 billion over the next 3 to 5 years “Given how fast the new technologies are evolving, traditional FS companies can't afford to ignore FinTech. Nevertheless, our study has shown that 25% of companies do not deal with FinTech in any way. In view of the ever faster advancing technological change, however, no FS company can rest on its laurels, ”explains Harreither. Contact Dieter Harreither Partner, Head of Technology Consulting Tel: +43 1 501 88-1110 E-mail #Tags Digitization Digital Transformation Financial Services Technology Consulting Share via FinTech Global Report For download Latest posts FinTech: The new competitors IT Sourcing Study 2015 Digitization: where is the journey going? Challenges Departure into new markets Automatic exchange of information to combat tax evasion Budget restrictions for the public sector Corporate governance The accounting police in Austria - are you prepared? Digital transformation ESMA examination focus Specialist lecture as part of the Finance Forum Family Business Survey 2014 FMA examination priorities in 2015 FMA examination priorities 2014 Innovative corporate finance Integrated reporting IT security despite cybercrime, smartphones and BYOD IT Sourcing - The Provider's Perspective Sustainability & corporate responsibility Audit focus of the Austrian Financial Market Authority Regulation and the IT systems of financial service providers Safe through the crisis MiFID II in the final spurt Corporate succession Company-wide spending optimization Growth through acquisitions White-collar crime Make knowledge measurable Press Contact © 2015-2016 PwC. All rights reserved. PwC refers to the PwC network and / or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. Data protection Legal Notice imprint About cookies