20 PwC Global FinTech Report 3.2 A rebalancing of power “Regulatory and capital Figure 12: Top threats relate to the rise o FinTech barriers to entry in insurance In your opinion, what are the threats related to the rise of FinTech within FinTech companies are not just bringing concrete solutions limit the impact of standalone your industry? to a morphing consumer base, they are also empowering FinTech companies.” customers by providing new services which can be delivered with the use of technological applications. The rise of “digital žead of ”eationship ‘anagement finance” allows consumers to connect to information anywhere in one of the argest asset managers in France at any time, and digital services can address their needs in a more convenient way than traditional nine-to-five financial advisors can. “FinTech will complement According to our survey, two-thirds (67%) of the companies banking services, but will not ranked pressure on margins as the top FinTech-related threat fully replace them.” (see Figure 12). One of the key ways in which FinTechs support the margin pressure point through innovation is step function žead of Inno€ation at one of the improvements in operating costs. For instance, the movement argest anˆs in “uemourg to cloud-based platforms not only decreases up-front costs, but also reduces ongoing infrastructure costs. This may stem 67% 59% 56% 53% from two main scenarios. First, standalone FinTech companies might snatch business opportunities from incumbents, such as business-to-consumer (B2C) FinTech companies ‚ressure on margins “oss of marˆet share Information security’ Increase of customer churn selling their products and services directly to customers and pri€acy threat positioning themselves as more dynamic and agile alternatives Source: ‚ƒ …oa FinTech Sur€ey 21† to traditional players. Secondly, business-to-business (B2B) FinTech companies might empower specific incumbents through strategic partnerships with the intent to provide better services.