They’re afraid of losing revenues to these innovators.
Traditional financial firms are having fears that fintech companies are going to capture their revenues, a study by PwC revealed.
Whilst 80% of financial firms are concerned that their business will lose revenues to standalone innovators, more than 4 in 5 plan to increase fintech partnerships.
PwC Singapore fintech and financial services leader Antony Eldridge said there have been established financial institutions investing in innovation for some time now.
"What is unique in Singapore is the regulator’s progressive approach which is helping to nurture FinTech growth by providing a conducive ecosystem. The introduction of regulatory sandboxes is a prime example of how the regulators here are creating an environment where new technologies can be experimented while minimising risks to consumers," he noted.
The study found out that when it comes to traditional companies, regulatory uncertainty is the major challenge. On the fintech companies' side, differences in management and culture are the top concern.
Check out the infographic below to see major humps financial and fintech firms in Singapore face when they collaborate:
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