Blurredlines:HowFinTechisshapingFinancialServicespwc.com/fintechreport20%Morethan20%ofFSbusinessisatrisktoFinTechsby202057%areunsureaboutorunlikelytorespondtoblockchaintechnologyGlobalFinTechReportMarch20162PwCGlobalFinTechReportTitleKeymessagesBlockchain:anuntappedtechnologyisrewritingtheFSrulebookHeadingforbargainbasementFS?FinTechisslashingcostsThefreelunchisover:FSmustleveragetheFinTechecosystemFinTechisshapingFSfromtheoutsideinWheretraditionalfinancialinstitutionshavefailed,FinTechsaresucceedingDisintermediation:FinTech’smostpowerfulweaponTimetogetoffthebench:over20%ofFSbusinessatrisktoFinTechsContentsIntroduction3Section1:Theepicentreofdisruption5Section2:EmergingFinTechtrendsontheradar9Section3:Anindustryundersiege19Section4:Offenceisthebestdefence22Conclusion29Appendix30Summariesofthetrends31DeNovo34Contacts352PwCGlobalFinTechReport3PwCGlobalFinTechReportIntroductionItisdifficulttoimagineaworldwithouttheinternetormobiledevices.Theyhavebecomecoreelementsofourlifestyleandhavebroughtahighdegreeofdisruptiontovirtuallyeveryareaofbusiness.Thefinancialservices(FS)industryisnoexception;thedigitalrevolutionistransformingthewaycustomersaccessfinancialproductsandservices.Althoughthesectorhasexperiencedadegreeofchangeinrecentyears,theconstantpenetrationoftechnology-drivenapplicationsinnearlyeverysegmentofFSissomethingnew.Attheintersectionoffinanceandtechnologyliesaphenomenonthathasbeenacceleratingthepaceofchangeataremarkablerateandisreshapingtheindustry’sstatusquo–itiscalledFinTech.WhatisFinTech?FinTechisadynamicsegmentattheintersectionofthefinancialservicesandtechnologysectorswheretechnology-focusedstart-upsandnewmarketentrantsinnovatetheproductsandservicescurrentlyprovidedbythetraditionalfinancialservicesindustry.Assuch,FinTechisgainingsignificantmomentumandcausingdisruptiontothetraditionalvaluechain.Infact,fundingofFinTechstart-upsmorethandoubledin2015reaching$12.2bn,upfrom$5.6bnin2014basedonthecompaniesincludedonourDeNovoplatform.Cutting-edgeFinTechcompaniesan...
