Just over 43% of executives in the financial services industry have stated FinTech firms pose a significant threat.
A global poll of the financial services industry carried out by Capgemini and LinkedIn, found a lack of consensus between executives, although most view FinTech firms as potential partners.
One fifth of respondents agreed FinTech companies will not survive on their own, and 54% consider them to be good acquisition targets.
However, increasing regulation and more restrictions means acquisitions are considered a higher risk proposition.
Founder and CEO of Motif Investing, Hardeep Walia, said “for every acquisition that does do well there are many that fail, in any industry.”
A majority of executives -77% - stated they see opportunities for partnerships with FinTechs, “allowing traditional firms to leverage in-house development,” the report said.
Eduardo Vergara, head of payments services at Silicon Valley Bank, explained partnerships are going to be “absolutely critical.”
“FinTechs have very strong products, but need scale and access to clients. On the other hand, banks have the scale and the clients, but struggle to build compelling products.
“With the right model, this can be a win-win,” he added.