The Covid-19 pandemic brought about significant challenges and disruption for many organisations. But for the fintech sector it also sparked dramatic growth owing to changes in consumer banking and spending habits, as well as an increase in digitalisation among traditional financial services institutions.
In recent years, fintechs have begun to deliver significant value to both consumers and businesses and have reshaped how some interact with financial services. Yet, while the fintech sector is going from strength to strength, these organisations still tend to face challenges.
Research from InterSystems found that an overwhelming 81% of fintechs identify data issues as their biggest technical challenge. Of this figure, 41% struggle to leverage data for analytics, machine learning, and artificial intelligence, while 40% are unable to connect to customers’ applications and data or legacy systems.
Encouragingly, most fintechs appear to be ready to take steps to overcome these challenges. Almost half (48%) plan to invest in data management technologies over the next 12 months, while 45% expect to implement AI and ML.
Taking these steps will help fintechs in their quests to attract customers, remain competitive, and increase collaboration with banks, with 34% saying they think the best option is to lease their applications to banks using a SaaS model.
InterSystems surveyed over 500 senior decision makers within fintechs from 12 countries globally, including North and South America, the UK and Ireland, Singapore, and Australia to understand their current technical challenges, priorities for the coming year, and perceptions on collaboration with more traditional institutions.
