THE FINTECH EFFECT non-life insurance were the second most likely sector for disruption . 58 % of respondents said that they currently make it a priority to monitor FinTech companies on a regular basis in order to respond as competitively as possible . This is a large part of the reason why FinTech partnerships are expected to increase 84 % in these areas over the next five years .

Transactions & payment services Though 73 % of people said they feared this part of their business was at risk to innovators , this number was actually down from 87 % from the 2016 report . This in itself is proof that partnerships can and do work , with 35 % of financial professionals partnered with FinTech companies on transactions and payment services recorded last year , increasing to 42 % in the most recently available version of the report .

In the end , the PwC report made it clear that mainstream financial institutions have no other choice but to rapidly embrace the disruptive nature of Fintech in any way they can . Forging partnerships with these providers that

are focused on long-term objectives not only puts both parties in a better position to sharpen operational efficiency , but it also allows them to respond head-on to customer demands for more innovative services sooner rather than later .

This is a large part of the reason why , according to data from PwC ’ s DeNovo platform , the funding of FinTech start-ups has increased at a compound annual growth rate of 41 % over the last four years alone . That represents a cumulative investment in excess of $ 40bn . Thanks to the rate at which FinTech companies and financial innovation are changing the competitive landscape , the lines of the financial services industry are being redrawn right before our very eyes .

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