Despite the operational and financial challenges that the financial sector suffered during the pandemic, Fintech companies experienced double-digit growth demonstrating proximity to profitability, which has led traditional banks to try to counter the growing popularity that these verticals are going taking among consumers with digital branches with the aim of attracting specific customer segments.
This is revealed by Capgemini and Efma in their World FinTech Report 2021, which shows a year-on-year growth in transaction activity in the FinTech sector of 11%, in the fourth quarter of 2020, after four consecutive years of decline, and the support of the investors, thus reaching maturity, with a diverse product portfolio, proving to be competent competitors and partners. This data is confirmed by the report that highlights the 9% increase in the activity of FinTechs operations in the last stage from 2019 to 2020.
Although 25% of consumers globally are looking for faster delivery, personalized services and convenience and say they would try banking products from these new players, the reality is that consumers continue to trust traditional banks: 68% say they would try one purely digital offering operated by its main bank.
This increased pressure on traditional banks, which can no longer delay the global adoption of digital models, is leading banks to prepare to leverage their strengths (global reach and customer trust) while addressing their weaknesses (legacy IT and customer experience) to remain relevant in the future, putting the user first and recognizing the potential for fluid digital interaction.
Of the banking executives surveyed, 63% said a purely digital subsidiary enables ubiquitous banking, 50% said it brings new products to market faster, and 52% said it facilitates collaboration thanks to plug-and-play functionality. -play.
