INDUSTRY BENCHMARK REPORT REVEALS ADAPTING TO CONSUMER DEMAND AND INVESTMENT IN TECH ARE KEY FOR WINNING EDGE
FinTech Connect 2022, Europe’s only dedicated fintech event for the entire ecosystem, today released its 2022 Industry Benchmark Report, Fintech in Flux: Thriving in the Age of Uncertainty, showing that customers remain the biggest focus, with 86 per cent of respondents investing in AI to stay competitive.
As the fintech arms race continues, the report shows that institutions of all sizes continue to embrace technologies in a bid to meet the demands of modern consumers and drive greater efficiency and insight – with 86.6% of respondents believing that investing in tech is necessary for the winning edge.
AI is the technology favoured by most, with countless applications, such as fraud detection, credit risk analysis, and automating customer support, continuing to set the industry abuzz.
Harnessing technology to improve the consumer experience and drive efficiency has long been the hallmark of this most disruptive of sectors, however, as we emerge from the tail end of the global pandemic and into the fresh tumult of cost-of-living crises and looming recessions, a massive 76% of institutions say that understanding the changing nature of consumers is also a prime concern.
Driven by these same pressures to keep up with the pace of change, identifying new trends and technologies is a major preoccupation for 60 per cent of FS players, with a similar proportion (62.6 per cent of respondents) planning to delve into decentralised systems, suggesting that understanding the impact of DeFi and blockchain could hold the key to their futures.
Other key findings include:
· Automation is on the move, with over 50 per cent of respondents already automating recurring tasks
· Over 70 per cent of FS players cite market volatility and monetary policies as the key factors keeping them awake at night
· Central Bank Digital Currencies (CBDC) are getting closer, with more than 50 per cent of respondents believing they have the potential to completely change consumer payments.
· 30 per cent of respondents see Scandinavia and Benelux as the trailblazers, as payment innovation continues across Europe
· Only 28.6 per cent of respondents are clear on how the Metaverse will affect their organisation
· Cybersecurity risk continues to grow, with 60 per cent of respondents citing it as a key focus
· The Crypto Winter hasn’t harmed adoption, with over 40 per cent of respondents stating that they will return if regulated, and 20 per cent confident they will bounce back either way.
Laurence Coldicott, Senior Content Director of Fintech Connect 2022, says:
It is clear that 2022 has provided an unexpected crossroads. Incumbent financial institutions have had to put their digital transformations in warp drive, with new technologies – that were previously only being looked at – now in the process of being adopted and rapidly deployed.
Many FIs are focussed on building frameworks that will allow them to better embrace FinTech and thrive in an age of increasing uncertainty, while partnering with FinTechs for a seamless banking system, or managing a hybrid or remote workforce, are other significant drivers for 2023.
FinTech is avoiding the trough of disillusionment and at a place of real excitement; and this survey seeks to address where we go next”.
Surveying 150 CXOs, CEOs, Founders and FinTech Leads from across the UK & Ireland, Benelux, the Nordics, and the Rest of Europe, FinTech Connect utilised their exceptional database of contacts to engage with the digital leaders at the centre of the global fintech paradigm.
Now in its ninth year, FinTech Connect 2022 is taking place between 30th November and 1st of December 2022, at the ExCel centre in London’s bustling docklands, and is set to welcome more than 3,000 attendees, who, over the course of two days, will hear from and meet the global fintech industry C-suite leaders and start-up innovators defining the course of the industry – all under one roof.