June 24, 2017 About | Subscribe | Contact | CUNA News [ Log in ]

Article Tools

CUNA Research Reports

CU Snapshot

 Apr '17Mar '17
# of CUs 5,926 5,953
Members
(millions)
111.2110.7
Total Assets
($ billions)
$1,381.2$1,374.7
Total Savings
($ billions)
$1,161.4$1,163.6
Net Cap.
Assets
10.4%10.4%
Loans to Savings79.3%78.2%
Loan Delinq.0.8%0.7%

         Credit Union Indicators

Threats From Fintech

Traditional financial services companies fear this new class of competitors.

Traditional financial service firms are feeling the heat from nontraditional competitorsóbig time.

Ninety-five percent of banks believe their business is threatened by standalone financial technology (fintech) companies, according to a PricewaterhouseCoopers survey assessing the rise of new technologies in financial services.

Overall in the financial services sector, 83% believe their businesses are at risk. And fintech companies anticipate they could capture 33% of the incumbents' business.

Respondents from the fund transfer and payments industry anticipate losing up to 28% of their market share to fintech firms in next five years, while bankers estimate they're likely to lose 24%. This compares with roughly 22% in the case of asset management and wealth management and 21% in insurance.

Two-thirds (67%) of financial services companies ranked pressure on profit margins as the top fintech-related threat, followed by loss of market share (59%).

(Via news.cuna.org)