CFA Swiss Fintech Survey: Swiss Bankers Convinced That Fintech Will Dramatically Impact Financial Industry
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Swiss bankers are the most convinced that fintech will impact the entire financial services industry, naming robo-advisory and blockchain technology as the most impactful innovations, according to a new survey by CFA Institute.
Released earlier this month, CFA Institute’s ‘Fintech Survey Report 2016’ measures the opinions of the organization’s investment professional members to better understand their sentiment towards the emerging fintech scene.
According to Christian Dreyer, CFA and CEO of CFA Society Switzerland, the survey results highlight “the fascination and respect that financial experts have for financial technologies.”
“Swiss counterparts are particularly convinced by all things related [to financial technologies],” Dreyer said in a media release.
Findings suggest that among the current innovations in the financial services industry, robo-advisors are expected to have the biggest impact in both short and long-term.
Asset management (55%), banking (16%), and securities (12%) are the three sectors that will be the most affected by automated financial advice tools.
70% of participants consider that mass affluent investors will be positively affected by robo-advisors in the form of reduced costs, improved access to advice, and improved product choices. In Switzerland, this figure rises to 80% of respondents.
That said, respondents also named the biggest risks affiliated with the increase in automated financial advices as technical flaws in the algorithms (46%), mis-selling of financial advice (30%) and privacy and data protection concerns (12%).
While robo-advisors are considered to be the technology that will have the greatest impact on the industry both 1 year and 5 years from now, blockchain technology is considered as the second technology with the greatest potential future opportunity (and risk) in the medium- to long-term.
Clearing and settlement, alternative currencies, and commercial banking are the top three areas that are thought to be under greatest impact of blockchain technology.
Crowdfunding and lending marketplaces on the other hand should have short-term impacts on the financial services industry.
38% of respondents believe that existing crowdfunding and/or peer-to-peer lending marketplaces do not have the right balance between ease of access and investor protection. 53% of them are not sure if such balance is possible.
As a leader in both financial services and innovation, Switzerland has the potential to become a frontrunner in fintech. That said, not all are convinced that the country is putting enough effort to fulfill its potential.
In a report released in February, EY argued that Switzerland is lacking governmental support when compared with the likes of London or Singapore.
In March, the Swiss Financial Market Supervisory Authority (FINMA) issued new rulings aimed at reducing obstacles for fintech startups and allowing the industry to flourish.
The circular allows financial intermediaries to onboard clients by means of online and video transmission and is targeted at digital businesses in particular.
Read CFA Institute’s ‘Fintech Survey Report 2016’