More than four-fifths of US commercial banks (82%) intend to increase their fintech investment over the next three years, according to new research.
A poll of commercial banking decision makers conducted by global fintech provider Fraedom has revealed that 86% of senior managers are planning an imminent increase in investment in the sector.
More than seven out of 10 respondents (71%) said that the rise of technology within commercial banking threatened traditional one-to-one banking.
Shareholders (95%) felt the disruptive impact of fintech the most, compared with middle managers (67%).
Kyle Ferguson, CEO of Fraedom, said: “The research reflects that a further fintech boom is on the horizon, which is great news for Silicon Valley and beyond.
“Banks should not feel threatened by technology, working with a fintech partner can help provide the customer with a better service, which in turn can strengthen relationships.”
Some 70% of US commercial banking decision makers said banks are much more cautious in adopting new technologies than their retail counterparts, while just 56% of UK respondents believed the same.
“It’s time for the commercial banking sector to be less restrained when adopting new technologies, especially when fintech firms can enhance their service offerings by outsourcing operations such as commercial cards,” Kyle added.
“When technology is quickly embraced, the gap between commercial and retail banks will narrow and the collaboration between banks and fintech providers will help boost the future of finance, benefiting consumers and the entire US banking industry.”
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