PwC Fintech Report Reveals Differences Between FS and TMT Firms
Results from the Firm’s Latest Fintech Survey
PwC has a new report titled: “Crossing the lines: How fintech is propelling FS and TMT firms out of their lanes.”
The firm notes in the opening remarks of the report that “It used to be that financial services (FS) companies and technology, media and telecommunications (TMT) companies traveled side by side, sometimes on the same roads but not usually in each other’s lanes. But now, the lines between FS and TMT firms have blurred to the point that the roads are a free-for-all and previously distinct sectors are colliding.
Many TMT companies are applying for FS licenses, and FS organizations have begun calling themselves technology companies. Fintech, or financial technology, is at the epicenter of this transformation. The FS and TMT industries are both using it to sharpen operational efficiency, lower costs, improve customer experience and heighten the appeal of their products and services. They’re also carving out new commercial possibilities.”
PwC Survey Data
PwC’s survey found that 47% of TMT and 48% of FS organizations have embedded fintech fully into their strategic operating model. Also, 44% of TMT and 37% of FS organizations have incorporated emerging technologies into the products and services they sell.
The survey showed that 80% of TMT and 75% of FS organizations are creating jobs related to fintech. Yet 42% of both TMT and FS organizations are struggling to fill these roles. While 73% of FS organizations are hiring from the technology sector, only 52% of TMT firms are looking to recruit from FS.
The survey concludes that “Firms that already have embedded fintech and are beginning to fuse TMT and FS strengths are set to seize most of the opportunities in the marketplace for differentiation and growth. Organizations that ignore the shake-up not only risk falling short of customer expectations, but also open the door for aggressive entrants to move in and claim market share and customer relationships.
You can access the full report here.
[Related: EY Report Talks Dealmaking in the Year Ahead]
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