Will Fintech be a Bruising Battle for Big Banks?

Fintech is just around the corner with it’s disruptive potential over existing financial system through its use of technology.

Canada however, saw that fintech was less of a factor, partly because local banks emerged in better shape after the global financial crisis and also because the banks have a higher level of satisfaction with local customers than other markets.

Those were the key points found in a recent report by analysts at Canaccord Genuity, which, because of the positioning, was able to bring a global perspective to fintech. Having offices in U.S., U.K., Canada and Australia, Canaccord was in a favourable position to comment on new entrants to the world of fintech, and also achieving the results.

“The U.K. appears to have seen the most disruption given a high proportion of GDP associated with the industry, growing government support for financial technology and higher customer dissatisfaction with incumbents,” said the 34-page report that drew on the input of eleven of the firm’s analysts.

The report also stated that the U.S. market – mainly because of companies like Apple and Paypal – is “highly disrupted” while the Canadian and Australian markets, fintech has seen “relatively low impact as yet and would do well to observe the U.K. market.”