Banks Could Lose We got into this whole fintech business about a year ago with FintekNews because we knew the disruption from the various emerging financial technologies was MASSIVE. However, a new study out by PwC - their annual fintech report which was released on Wednesday - is showing us just HOW MASSIVE this disruption may be. In it, the consulting firm is predicting that banks and financial institutions could see up to 25% - ONE QUARTER - of their revenue melt away from fintech competition by 2022. Think about that. The number is astonishing.

Now - think a little further about the impact on the bottom line to the financial stocks you are invested in for your firm's - or clients' - portfolio(s), and you can see why you need to read FintekNews every day to see what is going on in the business.

(Cindy Taylor/Publisher)

"Large financial institutions across the world could lose 24 percent of their revenues to financial technology companies over the next three to five years, according to a new study by PricewaterhouseCoopers.

Of the more than 1300 financial industry executives polled by the professional services firm, 88 percent said they feared their business was at risk to standalone financial technology companies in areas such as payments, money transfers and personal finance, the study found.

In banking specifically, consumer services such as personal loans, were seen as most at risk, according to PwC's annual Global FinTech Report published on Wednesday.

The report came as banks and other large financial firms face growing competition from a young cohort of companies that take advantage of new technologies to offer better digital services to customers, in areas ranging from financial advice to life insurance.

To counter the threat, financial institutions expected to increase their collaboration with fintech companies, with 82 percent of respondents saying partnerships with tech-savvy firms would increase over the next three to five years, the PwC report found.

To improve their digital offering and remain competitive, large firms have been looking to work more closely with young technology companies through a number of initiatives such as corporate venture arms and innovation centers..."

Source: Reuters