Technology in the financial sector: How to rise above the competition

Established financial sector firms will face crisis if they don’t have a plan to navigate inevitable industry change. It’s easy for vulnerability in established firms to go unrecognized; however, the threat is real and growing. According to PwC, financial firms may lose up to 28% of their banking and payments business to rising fintech companies by 2020. Insurance and asset & wealth management is also at risk with up to 22% of business predicted to be lost to disruptors. Fintech is a growing industry, but competition in the financial sector isn’t exclusively from new startups with agile methodologies.

According to the World Economic Forum, the largest competitors for financial firms are large technology companies. For example, look at Apple Pay®—a service launched not by a financial sector firm, but instead by a technology giant. So, how do established financial firms compete and survive with competition on all sides?