Financial institutions risk 24 percent revenue loss from fintech: PwC | Reuters

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By Anna Irrera
| NEW YORK

NEW YORK Large financial institutions across the world could lose 24 percent of their revenues to financial technology companies over the next three to five years, according to a new study by PricewaterhouseCoopers.

Of the more than 1300 financial industry executives polled by the professional services firm, 88 percent said they feared their business was at risk to standalone financial technology companies in areas such as payments, money transfers and personal finance, the study found.

In banking specifically, consumer services such as personal loans, were seen as most at risk, according to PwC’s annual Global FinTech Report published on Wednesday.

The report came as banks and other large financial firms face growing competition from a young cohort of companies that take advantage of new technologies to offer better digital services to customers, in areas ranging from financial advice to life insurance.

To counter the threat, financial institutions expected to increase their collaboration with fintech companies, with 82 percent of respondents saying partnerships with tech-savvy firms would increase over the next three to five years, the PwC report found.

To improve their digital offering and remain competitive, large firms have been looking to work more closely with young technology companies through a number of initiatives such as corporate venture arms and innovation centers.

In his annual shareholder letter published on Tuesday, JPMorgan Chase & Co chief executive Jamie Dimon highlighted some of the bank’s most recent collaborations with fintech companies in areas including mortgages, small…

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