Amidst rapidly rising fintech adoption by customers, a vast majority of banks admit that they are not well-equipped to combat the fintech onslaught, according to a report by Capgemini and Efma.
Currently, 63% of customers use fintech products or services, with its adoption highest in the emerging markets and among younger customers.
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However, the study revealed that only a meager 13% of banking executives are braced up to support this digital banking ecosystem.
Moreover, less than one quarter of banking executives held the view that they can score over these disruptors in terms of agility or ability to innovate in a fast changing financial landscape.
Banks also underestimated the value of these fintech services, with only 36% admitting that these services offer fast service or good experience.
The study also found a rise in trust for fintech firms, with over 88% of customers across all regions currently trusting fintech providers.
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By GlobalData46% of bank executives said that combating the fintech threat requires collaboration with fintech firms, while 18% said that they intend to acquire fintech firms or their technology.
Efma secretary general Vincent Bastid said: "The willingness to partner with FinTech firms is a recognition that banks are unprepared to operate in a future that consists of a series of secure digital interconnections.
"By partnering with these companies, banks can gain much needed guidance in product development, as well as a stronger voice in defining a central role for themselves in the current banking environment."
