Traditional financial services providers in Australia are not too worried about FinTech disruption, the country’s first ever sector survey shows.
Fintech startups have been recognised as a driver rather than disruptor by 98 per cent of the polled organisations in the State of Financial Marketing 2016 survey.
Over two-thirds of the respondents do not see fintech companies as a threat to the industry and less than a third (32 per cent) said it may pose a risk to them.
Nigel Roberts, Managing Director of Yell which conducted the research, believes fintech would be a way for big traditional players to become truly customer centric.
They are not able to do that on their own due to the sheer amount of cost they would have to face.
That is why many would prefer to acquire a fintech startup which complements their products and services.
Another reason for established financial services providers to not fear fintech startups is the fact that would swallow those businesses before they become too big to compete.
The operators which financial marketers should be worried about are large tech groups such as Apple, Google and Amazon which are already making headway with their payments systems.
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