PwC report on fintech trend
CLOSER links between finance and technology can be expected in the Channel Islands if firms follow global trends outlined in a new report from PwC.
The accountants have revealed that most global banks, insurers and investment managers intend to increase partnerships with fintech companies over the next three to five years and would expect an average return on investment of 20% on innovation projects.
Almost nine out of 10 are concerned that they will lose revenue to innovators, according to the report Redrawing the Lines – fintech's growing influence on financial services.
'Given the leading role that financial services play in the Channel Islands, this report is thought-provoking in its assessment of the role of fintech and how the global finance industry is responding to its growth and the competitive threat it poses,' said local PwC partner Nick Vermeulen.
'The Channel Islands has also invested in the digital sector and considering the strength and depth of the finance industry offering, it is highly likely that we will witness increasing partnerships between finance and tech companies, with the opportunity for further innovation, a quality that firms in both jurisdictions have demonstrated time and again.'
And immediately following Northern Trust's decision to use its Guernsey office to launch a blockchain solution for private equity fund administration, the report revealed that 77% of global financial services companies plan to adopt the technology in live production systems by 2020.
