Customers are progressively embracing new FinTech providers, with 50.2% globally saying they do business with at least one non traditional firm, a brand new research from Capgemini points out.
In particular, customers who are younger, tech-savvy, and affluent are much more likely to round out basic financial services with FinTech offerings.
In fact, tech-savvy customers are using services from FinTech firms twice as much as non-tech-savvy customers (67.3% vs 33.6%). The differentials are also sharp between Gen Y and others (60.9% vs 44.4%) and between the affluent and non-affluent (61% vs 49%), the study reports.
As a consequence of the fact that GenY and tech-savvy customers are expected to become increasingly prominent in the coming years, that traditional firms still hold some sort of competitive advantage as they gain the trust of 36.6% of the population whilst FinTech companies just 23.6%, and that approximately one in two (55.6%) neither trust or distrust their traditional providers, traditional firms have become more open to partnerships with FinTechs (60%).
This is confirmed also by a recent study from Roland Berger which focuses on the European market which pointed out that FinTech companies are aware of their role as innovation driver as well as of the fact they cannot revolutionize the industry alone. The other way around, the same can be argued focusing on traditional financial services players as they think they cannot digitize their business model alone.
In other words, as Roland Berger’s Martin Krause-Ablass said:
FinTechs have a realistic view of their role in the market: while they are indeed changing the financial industry, they alone will not herald a revolution. What banks and insurance companies themselves can get out of collaborating with FinTechs are opportunities to drive their own digital transformation. For them, this is about more than technical disruption, it is also about cultural transformation.