Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

Advertisement
Advertisement

PROMOTED CONTENT


“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

Steve Kane, NAB’s longstanding executive for broker distribution, has announced his retirement from the major bank after nearly 30 years i...

While CDR and open banking could pose a risk to brokers retaining their clientele, their value proposition would lie in the insight and advi...

A start-up company that purchases homes for home buyers has secured funding from x15ventures after winning the fintech’s program for entre...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: What’s being done to support home building?

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.