2„ PwC Global FinTech Report 4.4 Integrating FinTech comes Figure 1‹: Challenges or FinTech companies an incumbents with challenges What challenge did/do you face in dealing with FinTech/traditional financial companies? A common challenge FinTech companies and incumbents face FinTech ‡ncumbents is regulatory uncertainty (see Figure 19). FinTech represents a challenge to regulators, as there may be a risk of an uneven IT security playing field between the FS and FinTech companies. In fact, 86% of FS CEOs are concerned about the impact of over- regulation on their prospects for growth, making this the ”eguatory uncertainty biggest threat to growth they face.8 However, the problems do not correspond to specific regulations, but rather to ambiguity ifferences in usiness modes 9 and confusion. Industry players are asking, which regulatory agencies govern FinTech companies? Which rules do FinTech companies have to abide by? And specifically, which FinTech ifferences in management Ž cuture companies have to adhere to which regulations? In particular, small players struggle to navigate a complex, ever-increasing ifferences in operationa processes regulatory compliance environment as they strive to define their compliance model. Recent years have brought an increase of regulations in the FS industry, where even long-standing players ifferences in ˆnoƒedge’sˆis are struggling to keep up. IT compatiiity “We are willing to establish a “Given the volume of FinTech partnership with or to acquire companies, the big challenge is ”e¢uired financia in€estments a FinTech company.” sorting through them to find †‰ 5‰ 4‰ 3‰ 2‰ 1‰ ‰ ‰ 1‰ 2‰ 3‰ 4‰ 5‰ †‰ žead of ‘ŽA at one of the argest an appropriate fit.” anˆs in ‡raŸi žead of Inno€ation at one of the Source: ‚ƒ …oa FinTech Sur€ey 21† argest asset managers in the ¤S • ‚ƒ‹ 19th Annua …oa E sur€ey‹ 21† 9 —S¥‹ —here FinTech is strugging ƒith reguation‹ 215
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