Nearly half (49%) of retail banks across the globe opine that the fintech revolution would phase out the branch-based banking within five years, according to a study by Temenos.

The study, produced in association with the Economist Intelligence Unit, found that other concerns of the banks include a predicted decrease in the use of cash on the high street by 2020, with fintechs offering majority of payments, and peer-to-peer lending.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

New entrants were cited as a significant threat by 26% of the banks that participated in the survey, changing customer behaviour by 22%, and new technology by 24% of the banks.

Sixty four percent of the banks held the view that these threats will give rise to completely automated branches within five years.

The study has also highlighted that in the face of competition from peer to peer lenders and fintechs, banks are responding by investing in digitisation.

To stay ahead in the changing landscape, recruitment has been prioritised by 35% banks, system integration and compliance by 34%, legacy systems by 31%, and client adoption of digital services by 30% banks.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Temenos CEO David Arnott said: "Our study shows that banks have clearly woken up to the threat fintechs pose to their business. Last year we found that regulation and compliance were receding as threats. This year we can see that that trend has accelerated. The banks’ response is to look at ways of beating the fintechs at their own game. This may be partnering or co-operating with service providers, or investing in their own digital platforms."