Customer service: banks still have a (slight) edge over fintechs
The management of his personal finances no longer passes only through the services of a traditional bank, according to the “World FinTech Report 2017 » realized by Capgemini, in partnership with LinkedIn. Indeed, more than half (50.2%) of customers of traditional financial institutions (banks and insurers) also use the services of a FinTech, according to the results of the study. This proportion is highest in the Asia-Pacific region, with 58.5% of clients using FinTech services on average.
Conducted with 8,000 financial services clients in 15 countries around the world, the study looked at the use made of Fintech as well as the profile of its users. Senior executives working in financial institutions were also questioned about their perception of Fintechs.
Barely 36.2% of users in France
First observation, it is in the area of investment management that clients most often use the services of a FinTech (44.8% of respondents). Note that a little over 17% of respondents only go through a FinTech to manage their investments.
Another area particularly popular with Fintech users is payments and money transfers (41.6% of respondents). Here again, nearly 14% of respondents no longer use the services of traditional actors to carry out this type of operation at all. Finally, a little less than a third of the respondents are clients of a FinTech in the insurance sector, and 29.4% in the banking sector.
In terms of geographical distribution, it is in China and India that Fintech users are proportionally the most numerous, with 84.4% and 76.9% respectively of respondents having already used this type of service. In the United Kingdom, the European country with the most Fintech users, less than half (48.8%) of respondents are concerned. In France, barely 36.2% of respondents are clients of a FinTech.
Beyond this information concerning the uses and the geographical distribution of the respondents, the authors of the study sought to determine what was the typical profile of a Fintech user. Unsurprisingly, respondents who consider themselves technophiles use the services of a FinTech twice as much as others (67.3% against 33.6%). Young people from Generation Y are also more likely to use this type of service (60.9% against 44.4% for the other respondents). Finally, the most fortunate respondents also use these services more than others (61% against 49% for respondents categorized as “not fortunate”).
Better value for money for FinTechs
While Fintechs are gradually gaining ground, and particularly among the younger generations, traditional financial institutions are enjoying a slight lead in terms of image. Thus, more than a third of respondents (36.6%) say they trust traditional financial companies, against 23.6% who trust fintech.
Surprisingly, traditional companies are beating Fintechs when it comes to superior service quality and transparency. Fintech are seen as providing better value for money, as well as better efficiency. In terms of practicality, but also of user experience, the respondents are divided and believe that the two types of actors are equal.
More than half of traditional players see Fintech as potential buyout targets
Asked about the question, traditional financial institutions estimate at 76.7% that Fintechs constitute interesting partnership opportunities. 62.7% of them also believe that the latter set the bar higher in their sector. Finally, 53.7% of traditional banking establishments say that Fintechs are potential targets for takeovers.
In reaction to the development of these new players in their market, traditional financial institutions are opting 60% for a strategy of collaboration with FinTechs, and 59.2% for a strategy of developing their own offer to align with new ones. customer requirements. A little more than a third (38%) choose to invest in the capital of FinTech.
The main obstacles to innovation cited by traditional players relate above all to a lack of an internal culture of innovation (for 40.3% of respondents), and a lack of budget (to 37.3%).
** Methodology: study carried out by Capgemini between August and September 2016 with 8,000 financial services clients, in 15 different countries: Australia, Belgium, Canada, China, UAE, Spain, France, Hong-Kong, India, Japan, Netherlands Bottom, United Kingdom, Singapore, and Turkey. At the same time, LinkedIn interviewed 512 senior executives working in American financial institutions.