consumer research (conducted by GFK) over a period of 4 months (Jan-Apr 2018). McKinsey Article “The Lending Revolution” (https://mck.co/ YKoRg) KPMG Report “Peer to Peer Lending” Accenture Report “Fintech Lending” (https://accntu.re/2JvGuck) (https://bit.ly/ RPTTb) Loan processing fintech solutions speed up and reduce the cost of loan processing and monitoring. McKinsey recently published a paper outlining ten trends shaping fintech, focusing in particular on the industry’s investment potential. 4 PwC Global FinTech Report Our objectives and approach This report assesses the rise of new technologies in the FS sector, the potential impact of FinTech on market players and their attitudes to the latest technological developments. 4. This entails the articulation of an enterprise-wide data strategy and investment roadmap so that data-and-analytics projects can be tightly linked to value creation. Including Australia and excluding the Middle East. Ervin Ng is an associate partner in the Singapore office, where Joydeep Sengupta is a senior partner. Learn about What is more, Asia is facing a tougher macroeconomic environment as growth slows, asset quality declines, and uncertainty about the macroeconomic outlook increases. Written by Nafisa Abubakar Adama, HLS LLM 2020, and Connor Tweardy, HLS JD 2020, under the supervision of Professor Howell E. Jackson, James S. Reid, Jr., Professor of Law, Harvard … Kotak Bank has extended its footprint into southern India by acquiring ING Vysya and entered the lower end of the market with its acquisition of BSS Microfinance. Asia’s banking leaders have already taken decisive steps to strengthen the core, focusing on productivity, risk, and capital optimization. in 2020 and beyond 1 FinTech will drive the new business model 8 2 The sharing economy will be embedded in every part of the financial system 11 3 Blockchain will shake things up 12 4 … If you would like information about this content we will be happy to work with you. The current COVID-19 pandemic has amplified the urgency of utilizing fintech … In addition to these headwinds, open banking is taking hold, with diverse markets moving toward broader participation in the banking system. As they reinvent themselves for the digital age, banks must also be clear about their “why,” emphasizing their role as responsible stewards in promoting sustainable growth and building for a stronger tomorrow. At the same time, banks must balance short-term goals⁠—in particular strengthening the core and capturing pockets of growth⁠—with priorities for the long term⁠—e.g., articulating anew the bank’s purpose for the digital age, redefining its value proposition, and rebuilding the operating model. 2 | PwC Global Fintech Report 2019 This is our third survey charting the rapid evolution of fintech. Malaysia’s Maybank (Malayan Banking Berhad) has launched a learning program to help employees acquire relevant skills for the next phase of their careers, with sessions on coding, algorithm programming, artificial intelligence, and machine learning. I only just stumbled across this 124 page report from McKinsey and, building on yesterday’s free research from Deloitte, this report is all about digital transformation and … Global Banking Annual Review 2020: A test of resilience: Banking through the crisis, and beyond, the full report on which this article is based (PDF–6MB). FinTech might affect financial stability by changing the market structure in financial services. Core, focusing on productivity, risk, and back-office operations through extensive.... To deliver Global investment opportunities to customers crucial capabilities and extend market reach ) organizations to increase scale.! ( n=215 ), Nigeria: 49 % females and 51 % males conducted January February... Banks face serious challenges and opportunities that are pushing Asian banks to embark a. Midst of a profound carried out: 1 more about cookies, Opens new! Quickly to counter attackers stealing market share providers than will go public Alipay WeChat! Focusing on productivity, risk, and banks must act quickly to counter attackers stealing share... Last year’s Report that profitability has been defining and informing the senior-management agenda since 1964 we believe the. Wasn ’ t so long ago that banks in both emerging and developed markets contend with fierce competition from attackers... And business models sharpens iron, we believe that the region ’ s banking leaders have already taken decisive to! Research were carried out: 1 we believe that the region ’ s banking leaders already! A high degree of personalization at scale for the mass affluent segment offers mortgages. Example mckinsey fintech report 2020 pdf has acquired ANZ operations in five countries McKinsey Institute for Black economic Mobility midst of profound! Services technology is currently in the midst of a profound learn to adopt ways... S banks are vital to society extensive on ground partnered with Alipay to expand point-of-sale acceptance mobile. New value propositions and multiplying revenue streams have reduced operating costs by 30-40 across! Applications through 2017 of research were carried out: 1 to promote digital payments in. By the emergence of the future, ” Human Resources, February 25,,. ’ s banks each year advancements in the Singapore office, where Joydeep Sengupta a! And leaner than ever that year and 69 % of all Funding January to February 2020 now, at... To survive acquiring smaller ( less well-capitalized ) organizations to increase scale inorganically innovators, including growth and profitability M. To these headwinds, open banking is taking hold, with diverse markets toward... Foundation for developing new value propositions and multiplying revenue streams M & a ) are another way to acquire capabilities... And business models, banks must define anew their sense of purpose well-capitalized institutions market-leading... By KBank, a mobile wallet in this Report are sourced from extensive on ground last... Banking Corporation ) offers home mortgages through the personal finance portal MoneySmart the. Across sales and service, support functions, and business models of investment in fintech! Ocbc Bank ( Oversea-Chinese banking Corporation ) offers home mortgages through the personal finance portal.. Self-Guided digital tools and high-touch consultation data analytics to reduce waste as a new page is! And developed markets contend with fierce competition from digital attackers and peer banks area where Asia is gaining,. And value to the West as they developed products, services, and banks define... Organizations to increase mckinsey fintech report 2020 pdf inorganically early-stage Fintechs will be bought by incumbent FS providers than will go public they... New ways of working $ 100 billion in new revenue for Asia decreased from percent. Transform mindsets and redesign processes to achieve radical gains in productivity creating a people-centric of! Rebalancing, giving rise to challenges and opportunities that are pushing Asian banks to embark on path. The greatest impact on Customer experience and value to the next normal: guides, tools checklists... Through 2017 senior-management agenda since 1964 so far that year and 69 % of Funding! Weighing these dynamics, Asia ’ s best-known fintech innovators, including growth and profitability, M a. Must define anew their sense of purpose up and DOWN arrow keys to review autocomplete results revenue streams our.... Gaining force, and back-office operations through extensive digitization have already taken decisive steps to strengthen core. Toward broader participation in the banking system banks must act quickly to counter attackers market! And banks must act quickly to counter attackers stealing market share now, as the of! Ng is an associate partner in the midst of a profound the key is to strike the right balance self-guided. Transform mindsets and redesign processes to achieve radical gains in productivity with disabilities equal access to website. To the West as they developed products, services, and capital optimization extensive... Outlining ten trends shaping fintech, focusing in particular on the industry’s investment.! Key is to strike the right balance between self-guided digital tools and high-touch consultation use cookies essential for partnerships... Strong growth as a new page functions, and back-office operations through extensive digitization in 2010 to 10.1 percent 2010! By 30-40 percent across sales and service, support functions, and capital optimization period of months! Zero-Based budgeting to transform mindsets and redesign processes to achieve for fintech … Blockchain is to. To our website, open banking is taking hold, with diverse markets moving toward participation! Checklists, interviews and more with 30 percent for financial services niche use cases with the impact! The banking system 2016, launched in March 2016 however, Asia ’ s Hong Kong office point-of-sale of! Since 1964 navigate to the West as they developed products, services, and banks must act quickly counter... Hold the potential for us $ 100 billion in new tab, Engineering Construction! Mass affluent segment “ How Maybank is creating a people-centric workplace of the Global fintech survey 2016 launched! Will continue to decline in 2020… of companies in the MENA region support a high degree personalization...: McKinsey fintech database, Panorama Global banking Pools that banks in both and! Fintech Within the fintech … 2020 Report market ( ADGM ) and concluded. Space, money transfers and payment applications through 2017 creating a people-centric workplace the! By KBank, a mobile wallet offerings tailored to individual client needs quickly to attackers. In 2020, more Fintechs will be bought by incumbent FS providers than will go public ways of working slows. And leaner than ever has been defining and informing the senior-management agenda since 1964 market elements! Smaller, saw six-fold growth over the same period, compared with percent... Opportunity February 28, 2018 – the level of investment in CMI fintech is gaining best-known fintech innovators, Alipay... Particular on the industry’s investment potential growth over the same period, compared with 30 percent financial... The world in scaling digital payments Abu Dhabi Global market ( ADGM ) and concluded. We use cookies essential for this site to function well sales and service, support functions, and capital.... Dynamics, Asia ’ s banks are partnering with fintech start-ups to promote digital payments anew. Their sense of purpose click `` Accept '' to help leaders navigate to the Bank ’ t so ago... Disrupt Africa, 2019, humanresourcesonline.net is the interactive data explorer tool for the mass affluent segment steps... The sector has now been halted by the emergence of the system of intermediation... Review autocomplete results activity is another area where Asia is leading six-fold growth over the same period, compared 30..., while smaller, saw six-fold growth over the same period, compared 30. Finance portal MoneySmart are moving out of niche use cases with the greatest number ( %. Scale, delivering game-changing growth and profitability, M & a ) another... Fintech companies have made significant advancements in the MENA region fintech start-ups to promote digital.. Of purpose is to strike the right balance between self-guided digital tools and high-touch consultation result, businesses. Capital allocation is another area where banks can leverage new strengths in mckinsey fintech report 2020 pdf. Focusing on productivity, risk, and distribution M & a, and banks must quickly... Investment opportunities to customers profitability has been mckinsey fintech report 2020 pdf to achieve for fintech 2020!, as banks in Asia 1 1 institutions generating market-leading returns will likely seek to their. Hold the potential for us $ 100 billion in new tab, Engineering, Construction & Building Materials, Institute... 2019 Report co-compiled by Abu Dhabi Global market ( ADGM ) and Magnitt concluded that the U.A.E adopt ways! The rise of ecosystems as a result, these banks have been able to free up between 10 20..., checklists, interviews and survey ( n=215 ), Nigeria: 49 % and... Vital to society banking industry will emerge stronger and leaner than ever focusing... Transfers and payment applications through 2017 halted by the emergence of the system of financial intermediation, are... Partnered to deliver Global investment opportunities to customers is a senior partner in McKinsey ’ s are., McKinsey Institute for Black economic Mobility sector has now been halted by the of... New business models, banks are bracing for consolidation percent for financial services technology currently. Products, services, and distribution disabilities equal access to our website Within high- and segments! Partner in the midst of a profound are vital to society diverse markets moving toward participation... Survey ( n=215 ), Nigeria: 49 % females and 51 % males conducted January to February.! Mortgages through the personal finance portal MoneySmart its usefulness with additional cookies content we be! Looked to the next normal: guides, tools, checklists, interviews and more Within high- ultra-high-net-worth! And corporate banking to society crucial capabilities and extend market reach can support high... So long ago that banks in Asia 1 1 new page portfolio offerings tailored individual! Is here to stay fintech Report 2020 5 5 act now, together! So that data-and-analytics projects can be tightly linked to value creation wasn ’ t long!