Beruflich Dokumente
Kultur Dokumente
87%
Most payments
companies believe
that some part of their
business is at risk to
FinTechs
35%
pwc.com/fintechreport
2 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Key messages
Contents
Introduction
10
11
Conclusion 14
Appendix
Participant profiles
15
DeNovo 16
Summary of the FinTech-related trends
17
Contacts 18
3 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Introduction
4 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Figure 1: Key highlights from the PwC Global FinTech Report 2016
87%
28%
84%
To tackle the challenge, already 84% has FinTech at the heart of their
strategy to some extent
4%
35%
5 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
9%
8%
6%
5%
4%
2%
2%
0%
0%
Funds transfer
& payments
institutions
Banks
Asset
management
companies
Insurance
companies
6 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
More
1 Advanced tools and technology to protect consumers from identity theft, fraudulent
transactions and account falsification
2 Increased push for faster payments
4
9
8
3
6 5
10
11
Less
Figure 3: Trends in the payments industry ranked by importance and likelihood to respond
Level of importance
As fraudsters and those who commit cybersecurity threats become more sophisticated,
payments providers are becoming increasingly
concerned.
Less
More
7 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
8 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
We will continue to see a proliferation of valueadded offerings for new revenue streams and to
differentiate against competition. Eventually,
there will be a transformed consumer
experience associated with shopping and
money movement, but it will likely be driven by
non-payments incumbents.
Incumbents focus on new service paradigms to win the
top of wallet position, and they try to keep up to speed
with new entrants by addressing changing customer
expectations (figure 4). Rather than simply offering
a payment transaction, FinTechs seek to enhance
their attractiveness by including better experiences
associated with shopping, money management around
discretionary spending and money transfers.
FinTechs seek to make payments work better by
reducing the friction around already digitised payments.
They employ superior technologies to reduce friction
associated with current digital payments methods
and rails. Examples of this include leveraging new or
alternative rails (blockchain or faster payments rails)
or applying predictive analytics to reduce shopping cart
abandonment.
Figure 4: In which areas do you see the most important impact to your business from FinTech?
Meet changing customer needs with
new offering
Enable the business with
sophisticated operational capabilities
FinTech company
20%
40%
60%
80%
100%
9 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
The FinTech 2.0 Paper: rebooting financial services, Santander InnoVentures, 2015.
10 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
50%
50%
40%
40%
30%
30%
20%
20%
10%
10%
0%
Fully
Very
Moderately Slightly
Not at all
customer- customer- customer- customer- customercentric
centric
centric
centric
centric
Do not
know
All sectors
Funds transfer & payments institutions
Source: PwC Global FinTech Survey 2016
0%
Agree
Somewhat
agree
Neither/
nor
Somewhat Disagree
disagree
All sectors
Funds transfer & payments institutions
Source: PwC Global FinTech Survey 2016
Do not
know
11 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
12 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
0%
5%
All sectors
10%
15%
20%
25%
30%
35%
13 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Figure 8: What challenges did/do you face in dealing with FinTech companies?
FinTechs
Regulatory uncertainty
IT security
IT compatibility
Differences in knowledge/skills
60%
50%
40%
30%
20%
10%
0%
0%
Top 3 challenges
Source: PwC Global FinTech Survey 2016
10%
20%
30%
40%
50%
60%
14 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Conclusion
15 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Appendix
Participant profiles
The 2016 PwC Global FinTech Survey gathers the views of 544 respondents from 46 countries, principally Chief Executive Officers (CEOs), Heads of Innovation,
Chief Information Officers (CIOs) and top management involved in digital and technological transformation, distributed among five regions.
The payments-focused cut is based on the responses of 24 respondents from payments companies around the globe.
Head of Innovation
14%
Director/Head of Department
by geographical location
9%
Head of IT/Digital/Tech
5%
33%
Europe
12%
18%
Latin America
Head of Products
Between 10 and 50
13%
14%
North America
Other
42%
18%
CFO
36%
CEO/Board
by company headcount
Asia
32%
50%
16 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
DeNovo
http://www.strategyand.pwc.com/denovo
17 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
DeNovos Team is tracking emerging trends in FinTech to explain which start-ups, technologies, trends, and new market entrants are relevant to the payments
industry and more importantly, why. The trends highlighted below are a snapshot in time of the most relevant ones for the sector. For an updated view, please
subscribe to the DeNovo platform.
1. Next generation point-of-sale (POS) solutions Novel tech-based loyalty programs improve customer engagement and enhanced technology at the physical POS, such as the use of QR codes or Near Field
Communication (NFC), enhances security of mobile wallets.
2. Increased value-added merchant service offerings Additional services offered by merchant acquirers and processors including enhanced data analytics, reward and loyalty programs, fraud management, chargeback
protection, check processing, refund management and customer relationship management solutions.
3. Peer-to-peer (P2P) payment solutions and digital wallet FinTech companies are providing an increased number of solutions to facilitate P2P payment solutions. Increasing adoption of digital wallet for the use of e-money,
secure storage and cryptocurrencies.
4. Alternative retail-payment networks and funds-transfer solutions These electronic payment networks are alternatives to traditional networks offered by Visa, MasterCard, Discover and American Express. This includes online
payment systems, such as PayPal and Stripe, and loyalty and gift card solutions, such as Starbucks.
5. Proliferation of international/cross-border transfer platforms
Increased number of solutions and points of user interaction that enable faster and cheaper cross-border funds exchange or remittance.
6. Simplification of online-checkout experience The checkout experience can be directly affected by ease of website navigation, delays in transaction processing, volume of security checks, and limited payment
options. New vendors aim to eliminate the multiple inept steps (i.e. shopping cart, card info, etc.) currently required in an online checkout process.
7. Consumer protection from identity theft, fraudulent transactions
and account falsification
The use of topological analytics to ensure the authenticity or identify fraudulent transactions.
8. Increased push for faster payments Companies are focused on the funds transfer and payment space to limit the number of intermediaries for the purpose of faster (to immediate) transfer and/or
settlement and with this, a lower fee. This can include direct party transfer, peer-to-peer (P2P) transfer, use of prepaid account to transfer with a mobile phone and
no bank account.
9. Contactless technology for digital wallets Non-cash payment methods, such as credit and debit cards, smartcards, or other devices (e.g. mobile phones), that use radiofrequency identification to secure
payments at a physical POS terminal.
10. Blockchain Use of distributed and decentralised ledger technology in which transactions are recorded in order to improve payments, clearing and settlement, audit or data
management of assets. There is also the possibility to create a so-called smart contract using blockchain technology. This is essentially a contract that is
translated into a computer program and, as such, has the ability to be self-executing and self-maintaining.
18 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
Contacts
Vivek Belgavi
India FinTech and Technology
Consulting Leader
PwC India
+91 982 028 0199
vivek.belgavi@in.pwc.com
Steve Davies
EMEA FinTech Leader
Partner, PwC UK
+44 131 260 4129
steve.t.davies@uk.pwc.com
Manoj Kashyap
Global FinTech Leader
Partner, PwC US
+91 226 669 1888
manoj.k.kashyap@us.pwc.com
John Shipman
APAC FinTech Leader
Partner, PwC Australia
+61 8266 0198
john.shipman@au.pwc.com
Menekse Gencer
Payments FinTech Leader
Director, PwC US
+1 415 565 1796
menekse.gencer@us.pwc.com
Acknowledgment
We would like to thank Dariush Yazdani, Gregory Weber and the PwC Global research team for their involvement in the development of
this report, as well as ine Bryn and the Global FS Marketing team for their contributions.
19 PwC Payments in the Wild Tech World: digitisation and changing customer expectations
pwc.com/fintechreport
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This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the
information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the
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For more information about the global Financial Services marketing programme, please contact ine Bryn on +44 (0) 20 7212 8839 or aine.bryn@uk.pwc.com.
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