Business Strategy: Understanding and Responding to "Fintech"
This IDC Financial Insights report looks at "fintech" — the emergence of new products, models, and companies in financial services — and what it means for traditional financial institutions and their technology partners. The fintech space has generated considerable interest and promises to peel away services from those legacy players with innovative new approaches. The report provides an assessment of that potential and offers guidance on developing an outlook and strategy to deal with fintech's disruption. IDC Financial Insights believes the enthusiasm for fintech is warranted. Fintech is based on innovative ideas that will profoundly affect the delivery of financial services like retail banking, payments, and consumer lending; however, serious questions remain regarding regulation, security, and business value.James Wester, research director, IDC Financial Insights, says, "Fintech has become a catchall for a large number of products and companies, all aimed at taking a portion of the financial services market. Not all of these new products and new entrants will succeed in disrupting financial services; they face significant challenges in the form of regulators and competitors. That said, fintech has the potential to alter financial services and financial technology profoundly."