The overwhelming majority of finance firms in the Channel Islands surveyed for a major study say they see the fast-growing FinTech sector as an opportunity for their businesses.
The results are part of an EY report: FinTech in the Channel Islands, looking at the potential for technology to help companies drive efficiencies and improve the quality of what they do.
EY wanted to understand the thoughts of local businesses and gauge how the financial services sector is responding to changing demands.
88% of those who responded view FinTech as an opportunity for their organisations, with only 3% of respondents viewing it as a threat, while respondents identified business efficiencies as the main reason for using FinTech, with data integrity, transaction speed and security also highlighted as reasons to embrace new technology.
Ove Svejstrup, Associate Partner in assurance at EY, said: “Awareness of FinTech is clearly high within the islands, as is the recognition of the benefits it can provide, but this alone is not enough. 63% of respondents said that the current level of information on the FinTech market is insufficient.”
“With events such as FinVention taking place, there is already talk of FinTech in the market however the results suggest that more work needs to be done. Professional services firms and law firms should work with FinTechs to explore opportunities and look to educate the industry. The willingness to embrace the solutions on offer stands the islands in good stead in the global marketplace.”
Implementation of FinTech solutions has already begun in the Channel Islands, according to the study, with 62% of respondents saying they have already adopted it in some form or other.
Awareness of FinTech and acknowledgement that businesses need to react is high but concrete information and understanding of specific FinTech solutions is relatively low, resulting – say EY – in a market with a large unexplored potential.
The six main areas for growth identified are: Alternative financing, Blockchain, InsurTech, PaymenTech, RegTech and Robo-Advice.
Ove added: “Our findings reflect considerable consumer appetite for new and innovative financial services products alongside a desire for more information and understanding about the specifics of these solutions.”
“That leads us to conclude that it is the right time for Channel Island businesses to have a conversation about FinTech, how it can benefit them and how they can go about leveraging these innovations.”
