Market News

Report says fintech firms top financial sector disruptors

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Customers at a banking hall in Nairobi. file photo | nmg

Financial technology (fintech) start-ups are the main source of disruption in financial institutions, pushing firms to pursue strategies like partnering, buying, sourcing and investing to stay afloat.

The 2017 KPMG Fintech survey report shows the top-three sources of disruption as emerging fintech (57 per cent), growing global regulatory complexity (51 per cent) and new business models (46 per cent).

However, in Kenya companies have rapidly adopted fintech strategies as they drive innovation for products and services to meet customer expectations and maximise value.

“I would suggest that banks and insurance companies have roundtable discussions with the regulators and streamline the processes and make it easier and faster to build an amazing opportunity in this market,” said Dorel Blitz, director, head of fintech at KPMG Israel.

READ: FinTech companies take on banks, telcos with Big Data arsenal

The report was unveiled by KPMG and Matchi—a global fintech innovation match-making firm—in Nairobi yesterday. It advised firms to have a clear fintech strategy that aligns to organisational objectives, considers current assets and capabilities and includes an execution plan.

The report said for organisation to thrive, they must recognise the need to reinvent what they do and how they do it.

“Competitors are evolving too and it’s not just fintech knocking on the market door – large tech giants, retailers and other global companies are looking for ways to provide the financial services customers want.”