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Regulatory issues - main impediment to fintech growth in 2016

Wednesday 18 November 2015 11:19 CET | News

Fintech company founders and investors expect regulatory hurdles to be the biggest impediment to their success in 2016.

These are the findings of a survey released by Silicon Valley Bank, the US-based high-tech commercial bank, which examines issues that are top of mind for startup companies interested in disrupting traditional financial services.

Key survey findings:
Regulatory hurdles challenge fintech – almost 43% respondents said regulatory issues were their biggest impediment, followed by reticence by corporations to adopt new technology (24%), changing consumer behavior (18%) and access to funding (15%).

Growth anticipated in the US – despite regulatory hurdles, the US is viewed as the market with the greatest opportunities for growth and expansion for financial technology (36%), ahead of Asia (22%) and Europe (14%).

Experts mixed on blockchain – respondents were divided as to whether blockchain is a technology looking for a problem to solve (46%) or one that is providing a solution for financial institutions (54%).

Funding is available – the majority of respondents believe that the financial technology sector is funded appropriately. In fact, only 17% feel that the sector is currently over-funded.

Industry disruption to continue – when asked to identify the greatest opportunity for fintech disruption, infrastructure (including blockchain and API) was the top pick according to 24% of respondents. Results were nearly evenly split between payments (23%), insurance and alternative lending (both at 20%). Wealth management and robo advising were identified by just 13% of respondents.

The survey of 101 company founders and investors in the financial technology space was conducted at Silicon Valley Banks Fintech Mashup on 3 November, 2015 in New York City.


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Keywords: fintech, regulatory hurdles, fintech company founders, blockchain
Categories: Payments & Commerce
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Countries: World
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