Results from a PwC survey in the financial services (FS) sector has revealed that 83% of respondents from traditional FS firms believe part of their business is at risk of being lost to standalone FinTech companies.
Traditional financial services (FS) firms believe part of their business is at risk of being lost to standalone FinTech companies.
A new PwC survey, which assesses the rise of new technologies in the FS sector and their impact on market players, reveals 83% of respondents in general see this as a risk, rising to a staggering 95% in the case of banks.
The report, ‘Blurred Lines: How FinTech is shaping Financial services’, features the responses of 544 CEOs, Heads of Innovation, CIOs and top management involved in digital and technological transformation across the FS industry in 46 countries. Incumbents believe 23% of their business could be at risk due to further development of FinTech. What’s more, FinTech companies themselves anticipate they could capture 33% of the incumbents’ business.
Banking and payments feel most heat from FinTech
The survey shows the banking and payments industries are feeling the most pressure from FinTech companies. Respondents from the fund transfer & payments industry anticipate that in the next five years, they could lose up to 28% of their market share to them, while bankers estimate they are likely to lose 24%. This compares to around 22% in the case of asset management & wealth management and 21% in insurance.
Top threats from FinTech
Two-thirds (67%) of FS companies ranked pressure on profit margins as the top FinTech-related threat, followed by loss of market share (59%). One of the key ways in which FinTechs support the margin pressure point through innovation is step function improvements in operating costs. For instance, the movement to cloud-based platforms not only decreases up-front costs, but also reduces ongoing infrastructure costs.
Blockchain untapped and underestimated by FS
Blockchain, a distributed ledger technology, represents the next evolutionary jump in business process optimisation technology. According to PwC, it could result in a radically different competitive future in the FS industry, where current profit pools are disrupted and redistributed towards the owners of new, highly efficient blockchain platforms. Not only could there be huge cost savings but also large gains in transparency. Yet it ranks low on the agendas of participants.
While the majority (56%) recognise its importance, 57% say they are unsure or unlikely to respond to this trend.
“When faced with disruptive technologies, the world’s leading companies succeed by rapidly weaving them into their DNA, as part of their ‘business as usual’ process,” says Haskell Garfinkell, US FinTech co-leader, PwC.
“Blockchain and disruptive ledger technologies offer a once-in-a-lifetime opportunity for financial services companies to transform the way they do business. In our view, the lack of understanding of blockchain technology and its potential for disruption poses significant risks to existing business models and the firms that do not take the time to understand the impact will underestimate the opportunities and threats that blockchain can provide.”
To put this into perspective, PwC’s Global Blockchain team has identified over 700 companies entering this space, 150 of whom it says are ‘ones to watch’ and 25 of which it expects will likely emerge as leaders.
Challenges for FinTech companies and incumbents
PwC’s survey shows the most widespread form of collaboration with FinTech companies is joint partnership (32%), which, says PwC, is indicative FS firms are not ready to go all in and invest fully in FinTech.
Asked what challenges they face in dealing with FinTech companies, 53% of incumbents cited IT security, regulatory uncertainty (49%) and differences in business models (40%).
In the case of FinTech companies, differences in management and culture (54%), operational processes (47%) and regulatory uncertainty (43%) were deemed the top three challenges when dealing with traditional FS firms.
Steve Davies, EMEA FinTech Leader at PwC comments:
“FinTech is changing the FS industry from the outside. PwC estimates within the next 3-5 years, cumulative investment in FinTech globally could well exceed $150bn, and financial institutions and tech companies are a stepping over one another for a chance to get into the game. As the lines between traditional finance, technology firms and telecom companies are blurring, many innovative solutions are emerging and there is clearly no straightforward solution to navigate this FinTech world.”
Paul Mitchell, Fin Tech Leader, PwC South Africa, says:
“South African financial services players, old and new, are uniquely positioned in a sophisticated industry on a high growth continent. The opportunities for innovative solutions for a young and adaptable population is huge, and the impact of FinTech in Africa could well overtake what we are seeing in the US and Europe.”
“Customers’ behaviour, and their expectations around how companies interact with them, is changing quickly. The FinTech industry is driving these changes in financial services, and the established businesses in the industry who recognise this are having to learn fast. This is leading to a reassessment of many elements of the customer experience and engagement process that will play out over the next few years.”
As selfie cameras rise, so must selfie etiquette
Selfies were once a sign of narcissism or self-obsession. Now they are the new normal, writes ARTHUR GOLDSTUCK.
You can blame Oxford Dictionaries for making the “selfie” respectable. After all, being named Word of the Year, as it was in 2013, does tend to soften some of the self-consciousness in this most self-conscious of actions.
Once seen as a symbol of narcissism and self-obsession, it is now the new normal, to the extent that most smartphones are sold on the basis of the front camera. Or, as that feature is now almost universally named by manufacturers, the “selfie camera”.
I was one of the hold-outs, having a near-allergy to the selfie. I still resist, but succumb more often than I would like. The reason for continued resistance is that it remains a big leap from the word becoming respectable to the action itself shedding its narcissistic image.
For most, it’s already happened, and for that you can blame Ellen DeGeneres. She choreographed the most famous group selfie yet at the 2014 Oscars, when she roped a bunch of actors into a group selfie, using the then-new Samsung Galaxy S5 smartphone. Her tweet of the photo became what was then the most retweeted posting ever on Twitter, and was estimated to have been worth a million dollars in marketing value to Samsung.
Ironically, it was Samsung’s up-and-coming challenger, Huawei, that came up with a new word for this type of selfie: the “groufie”. Thanks to an 8 Megapixel front camera on the new Huawei Ascend P7 camera that year which took the highest quality selfies – and groufies – possible on a smartphone at the time.
It didn’t end there, and selfies and groufies have morphed into variations like selfscapes (selfie in a landscape), skyfies (selfies from the air, using remote controlled devices) and jerkies (selfies to make an idiot out of yourself). I invented all of those on the fly, so it’s easy to imagine a new word emerging for every type of selfie.
Continue reading about selfie improvements through the years.
Mickey’s 90th for SA
Disney Africa announced the local launch of the Mickey the True Original campaign, joining the global festivities honouring 9 decades of Mickey Mouse, his heritage, personality and status as a pop-culture icon.
As 18 November 2018 marks 90 years since his first appearance in Steamboat Willie in November 1928, a series of world-wide celebrations will be taking place this year and South Africa is no different.
The campaign will come to life with engaging content and events that embrace Mickey’s impact on the past, present and future. The local festivities kick off in earnest this month, leading up to Mickey’s 90th anniversary on 18 November 2018 and beyond:
- An exclusive local design project where ten highly talented South African artists will apply their own inspiration and artistic interpretation on 6-foot Mickey Mouse statues.
- Once revealed to the public, the statues will form part of the Mickey the True Original South African Exhibition, inspired by Mickey’s status as a ‘true original’ and his global impact on popular culture. The exhibition will travel to 3 cities and delight fans and families alike as they journey with Mickey over the years. Featuring 4 sections highlighting Mickey’s innovation, his evolution, influence on fashion and also pop culture, the exhibition is in collaboration with Samsung and Edgars, and will visit:
o Sandton City, Centre Court: 28 September – 14 October
o Gateway Theatre of Shopping, Expo Explore Court: 19 October – 11 November
o Canal Walk Shopping Centre. Centre Court: 16 November – 26 November
- Samsung continues their collaboration with Disney as they honour Mickey’s 90th anniversary nationally at all Samsung and Edgars Stores. Entitled Unlocking the Imagination, fans are encouraged to visit these stores, take a selfie with a giant Mickey plush toy using their Samsung Galaxy Note9 and stand a chance to win not only a giant Mickey plush, but also an international family trip. Visit www.Samsung.com for more information
- Mickey’s 90th Spectacular, a two-hour prime-time special, will be screened on M-Net 101 later this year. The elegant affair will feature star-studded musical performances, moving tributes and never-before-seen short films. Superstars from music, film and television will join the birthday fun for the internationally beloved character.
- In addition, look out for special programming on Mickey’s birthday (18 November) across Disney Channel (DStv, Channel 303), Disney XD (DStv, Channel 304) and Disney Junior (DStv, Channel 309).
- In retailers, Edgars will be stocking a complete collection of trendy fashion, accessories and footwear for the whole family, inspired entirely by Mickey Mouse.
- Mickey will be the central theme of an in-store campaign nationwide this November and December, with brand new products, apparel, toys, as well as titles from Disney Publishing Worldwide, including books, arts & crafts and comics
- Discovery Vitality and Disney are celebrating healthy, happy families this festive season by offering helpful and exciting tips and tricks on how to eat nutritious, yet delicious, foods, all inspired by Mickey. There’s also a trip to Disneyland Paris up for grabs. Log on to www.discovery.co.za/vitality for information.
- And much more – check the press for updates
“Binding generations together more than any other animated character, Mickey Mouse is the “True Original” who reminds people of all ages of the benefits of laughter, optimism and hope,” says Christine Service, Senior Vice President and Country Manager of The Walt Disney Company Africa. “With his universal appeal and ability to emotionally connect with generations all over the world, no other character quite occupies a similar space in the hearts and minds of a global fan base and we are thrilled to be sharing these local festivities.”
Mickey’s birthday is celebrated in honour of the release of his first theatrical film, Steamboat Willie, on 18th November 1928, at the Colony Theatre in New York City. Since then, he has starred in more than 100 cartoons and can currently be seen on Disney Channel (DStv, Channel 303) in the Mickey Mouse cartoon series and on Disney Junior (DStv, Channel 309) in Mickey and the Roadster Racers.
South African fans are encouraged to share their Mickey Mouse moments on social media using the hashtag#Mickey90Africa.