Addressing Challenges to Fintech Adoption
Accenture’s recent Fintech Innovation Lab questionnaire surveyed 87 financial services executives and fintechs in New York, London and Hong Kong to understand their perceptions of what was occurring during the four phases of the technology onboarding process: prospecting or marketing; proof of concept; procurement; and actual product implementation.
After nearly a decade of growth for the fintech sector, it has taken a foothold in financial services. The ability to quickly adopt external innovation is creating competitive advantages for financial services companies. Entrepreneurial fintechs decreasingly see themselves as competitors with large financial institutions, but rather as partners in a large, highly regulated marketplace. Financial institutions and entrepreneurs all stand to benefit if they get the interaction right. The fast pace of technology advancement only underscores the importance of getting fintech adoption right.
An overview of survey results shows greater transparency and clearer communications are needed in the fintech onboarding process. Overall, onboarding technology products at financial companies appears complex and under- resourced from the fintech perspective. And while financial institutions are moving to streamline internal processes, fintechs suggest they aren’t as far along as they think they are. But fintechs also may not be as sophisticated as other large contractors that are accustomed to working with financial institutions, which means it is sometimes difficult for fintechs to move through the implementation process smoothly.
The report outlines the findings for each of the four phases of the technology onboarding process:
- Time is perceived differently
- The two vantage points estimate different levels of people involvement
- Best practices are underused
- The two groups see different issues
Proof of Concept
- Reasons diverge on why products stall
- Financial institutions and fintechs estimate different rates
- Perceptions differ on procedures implemented to simplify the proof
- Both groups agree procurement takes too long
- Vendor approval and procurement processes are rated as the two creates challenges moving from procurement to implementation
- Shared focus on regulatory issues can be improved
- Security and compliance and vendor approval processes slow down implementation
- Adequate financial institution resources are critical