return icon

PwC surveys how financial and tech firms navigate fintech landscape

PwC polled over 500 financial services and technology executives worldwide to figure out the factors that will determine the winners and losers of fintech.

pwc surveys how financial and tech firms navigate fintech landscape

The FS and TMT industries are using fintech to sharpen operational efficiency, lower costs, improve customer experience, and heighten the appeal of their products and services. They are also carving out new commercial possibilities. Digital-only banks are offering redesigned client propositions and cost profiles while investment managers are deploying fully customised robo-advisory.

Insurers are using sensors to monitor people’s health and drive illness prevention and according to a recent PwC survey, consumers are ready for the digital shake-up. The question is no longer whether fintech will transform FS, but which firms will apply it best and emerge as the leaders.

Key findings and insights

Adopting a fintech-centred strategy is paramount – The survey found that 47 per cent of TMT and 48 per cent of FS organisations have embedded fintech fully into their strategic operating model. Also, 44 per cent of TMT and 37 per cent of FS organisations have incorporated emerging technologies into the products and services they sell.

“The really big changes have to be top-down. They have to be strategic. They have to be something that leadership, the board, and the executives are closely involved in and have decided the organisation needs to pursue,” said John Garvey, Global Financial Services leader, PwC.

FS should look to TMT for ideas about how best to use fintech – FS executives surveyed think that using fintech to improve the ease and speed of their service will be key to retaining customers. However, people expect ease and speed, so firms that focus their fintech efforts on these attributes might only meet customers’ expectations and not differentiate themselves, especially when competing with digitally sharp, intuitive TMT businesses.

pwc surveys how financial and tech firms navigate fintech landscape

Vo Tan Long, technology consulting partner at PwC Consulting Vietnam



Vo Tan Long, Technology Consulting partner at PwC Consulting Vietnam, said, “Customer satisfaction through customer experience is the ultimate goal for companies. Everywhere in the world, technology is helping to bridge the gap between the virtual world and the real world by aligning the customer experience in both worlds, thus creating customer satisfaction. This is also the best way to attract and retain customers.”

FS and TMT should look to each other and retrain to fill skills gaps – PwC's survey showed that 80 per cent of TMT and 75 per cent of FS organisations are creating jobs related to fintech. Yet 42 per cent of both TMT and FS organisations are struggling to fill these roles. While 73 per cent of FS organisations are hiring from the technology sector, only 52 per cent of TMT firms are looking to recruit from FS. Finding ways to attract people from TMT to FS and vice versa will be important to future success because each sector needs the other’s expertise. Upskilling will also be important.

Firms should push cross-sector fusion – Among organisations that are planning to pursue an acquisition, strategic alliance or joint venture to drive growth via fintech, 78 per cent of TMT and 76 per cent of FS firms are targeting businesses within their own sectors. Less than half (44 per cent of TMT and 47 per cent of FS organisations) are targeting a company specialising in fintech.

At a time when FS firms are striving to sharpen their technology capabilities and TMT needs product and regulatory expertise to compete in the FS market, firms will miss opportunities if they do not pursue more cross-sector cross-over.

“Cross-sector collaboration will help to create a complete set of services that cater to customers’ daily life. Such ecosystems might require inter-organisational integration of business processes and technologies. In Vietnam, a number of large and medium-sized commercial banks, telecommunications corporations, and leading fintech companies have been at the forefront of this process,” Vo Tan Long said.

“In China, convergence is gathering pace. At the top of the market, we’ve even seen regulators seeking to match up the big four TMT firms with the big four banks and get them to work together – you could call it an arranged marriage. The TMT firm provides the tech-enablement and the FS firm delivers the end product,” said Wilson Chow, TMT Global leader, PwC.

pwc surveys how financial and tech firms navigate fintech landscape

The current landscape

Emerging technologies have given companies a low-cost way of creating convenient, personalised, data-intuitive products and services. Fintech has also lowered the barriers to entry for firms – from established FS groups to startups or TMT entrants – and has therefore created a complex web of co-operative competition, or “co-opetition,” and collision.

Winners and losers

Companies that have embraced fintech are reshaping the marketplace, and those that have not are being left behind. Three-quarters of the FS and TMT executives surveyed said they are stepping up their fintech investment in the next two years. More than 90 per cent are very or somewhat confident that fintech will deliver revenue growth over the next two years. However, focus, maturity, and speed to market vary.

This is PwC's third survey charting the rapid evolution of fintech.

• PwC's 2016 Global Fintech Survey, Blurred lines: How fintech is shaping financial services, revealed established financial services (FS) organisations’ concerns about the threat to their market position as fintech set new benchmarks for agility, customer insight, and cost.

• PwC's follow-up in 2017, Redrawing the lines: Fintech’s growing influence on financial services, highlighted the shift towards collaboration as startups realised they did not have the scale or customer trust to compete with long-established FS organisations head-on, while FS looked to fintech partnerships to help strengthen operational efficiency and boost innovation. VIR

Nguyen Huong


Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.

Enjoying Quang-style noodle soup in the place where it was born

Phu Chiem Village in Dien Phuong Commune, Dien Ban District, Quang Nam Province, is where the popular Quang-style noodle soup was first created. And where better to taste this specialty than the place where it was born.

Exploring hidden spots on Co To Island

Aside from white sand, the blue sea and fresh air, Co To Island in Quang Ninh Province has several other beautiful spots that are worth a visit.

Vietnamese leaders extend sympathy to Cuba over oil tank explosion

Top Vietnamese leaders have sent messages of sympathy to their Cuban counterparts over severe losses caused by a massive blaze in an oil storage facility in Cuba’s province of Matanzas on August 5.

CNN reporter loves Vietnamese fish sauce

Chris Dwyer, a reporter for CNN, says he has loved Vietnamese fish sauce made in Phu Quoc (South Vietnam), though it was not easy to taste at the beginning.

Apple CEO Tim Cook appreciates Vietnam market potential

Vietnam, together with Brazil, Indonesia and India that are emerging markets, have made practical contributions to Apple’s group’s outstanding performance in the second quarter of this year, said CEO Tim Cook.

Electronics manufacturers ‘forget’ to recall or recycle used products

Large electronics manufacturers are still not willing to participate in the collecting and recycling of electronic waste to ensure a good living environment for people.