A survey conducted by Silicon Valley Bank (SVB) among fintech startups and investors in the industry has revealed that the biggest challenge they see for the near future are regulatory hurdles, the bank said in a press release.
Mistrust of Technology Also an Issue
As many as 43% of the 101 respondents surveyed during SVB’s Fintech Mashup event said that regulatory changes were the most difficult to cope with, a runaway number-one problem ahead of companies’ reluctance to adopt new technologies, cited by 24% of respondents. The number-three biggest challenge for the fintech industry was seen to be changing consumer behavior, with 18% being worried about it, followed by access to funding, noted by 15% of respondents as a challenge.
It’s interesting, however, that the same survey found the financial technology sector is sufficiently funded for the moment, with 55% concurring on this, and 17% actually of the opinion that the industry is overfunded.
With regard to the biggest opportunities in this playing field, 24% of respondents said that infrastructure, including APIs and blockchain, had the greatest disruptive potential, following payment systems, with 23% picking it for its disruptive potential, insurance and alternative lending, selected by 20% of respondents each.
All in the Name of Quality Services
Commenting on the findings of the survey, SVB’s Chief Digital Officer Bruce Wallace said: “As innovators continue to redefine innovative operating models across the financial services sector, it is important to us to help our clients navigate challenges as they identify opportunities to improve financial services for consumers and businesses.”
Echoing the major concerns of banks and other financial service providers, Wallace added that an effective regulatory and compliance strategy is of vital importance for their success. This seems to be a fact that regulators are also starting to realize. The latest development in this respect comes from Europe, where the authorities are considering a delayed implementation of the comprehensive financial markets reform MiFID II.
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