Powered by MOMENTUM MEDIA
subscribe to our newsletter
Risk-averse banks holding fintech back: report

Risk-averse banks holding fintech back: report

Innovation is being ‘squashed’ within the financial sector by the big banks’ determination to maintain the status quo, according to a new Capgemini report.

Capgemini's World Fintech Report 2017 found culture to be the biggest impediment to innovation, with 40.3 per cent of executives surveyed saying the risk-averse nature of financial services has created a culture that prizes the status quo and is not conducive to innovation.

Capgemini found budgetary constraints “also play a role in thwarting innovation”, according to 37.3 per cent of surveyed executives, as did “the ongoing focus on business as usual efforts” which was cited by 29.9 per cent of executives.

“Innovation is hard for institutions to accept philosophically,” Capgemini said, as it not only represents a move away from traditionally accepted methods of technological advancement, but also provides little clarity on return on investment.

“With the links between innovation and profit difficult to discern in some cases, buy-in from top management can be problematic, an issue cited by 23.9 per cent of executives,” the report said.

“Most financial institutions operate on strict return on investment principles, and do not look favourably on technologies that do not provide clear payback.”

[Related: Analysis: The Financial Services Revolution]

Risk-averse banks holding fintech back: report
mortgagebusiness

Latest News

The prudential regulator has announced that it will be removing its 30 per cent speed limit on interest-only lending from 1 January 2019.  ...

A digital “neobank” is intent on challenging Australia’s “entrenched major banks” after securing a restricted banking licence from...

The corporate regulator has revealed the changes being made by lenders to reform their credit card lending practices. ...

FROM THE WEB
podcast

LATEST PODCAST: Unpacking the findings of the ACCC’s mortgage pricing report

Is enough being done to ensure responsible lending?