Banks under threat from aggressive fintech start-ups

Non-bank players are clinching a larger market share.

Traditional banks are under threat from aggressive alternative banking firms, or FinTechs, a report by Deloitte revealed.

According to Deloitte, these players are beginning to transform the financial sector by creating disruption practices such as providing online banking and offering a wider spectrum of new services, such as mobile payments and crowd-funding.

“Coming quickly from behind are the FinTechs that are transforming the financial sector by revamping offerings and solutions in the new digital landscape, thus obtaining first-mover advantages and seizing the opportunities that the banks miss out by being inward looking,” said Mohit Mehrotra, an Executive Director with Deloitte Consulting.

In mature markets such as Singapore, there is an increased interest in utilising real-time analytics that could be integrated into business processes.

The report showed that about 94% of businesses in Singapore have plans to increase or maintain real-time data analytics and business intelligence related spending from 2011 to 2012.

Amongst the 94%, 54% have indicated that the spending on business intelligence and real-time customer and business analytics will stay the same, 32% indicated that the spending will increase by 5% to 10%, and 8% indicated that the spending will increase by more than 10%.