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FinTech Adoption Slower Than Expected

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FinTech Adoption Slower Than Expected

Introduction

This article was posted on Friday, 07:31, UTC.

The chief executive of Holocentric has said that while there is no shortage of innovation in the FinTech industry, adoption is taking place at a much slower pace due to integration issues.

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In a report from FinTech Business, Bruce Nixon said:

“With any new technology, there is hype and prototyping and testing and a lot of start-ups involved, but it takes a while for that to be melded into something that is robust and can be mutually accepted by a certain market.”

He adds, though, that an increase in the number of FinTech startups and changing customer needs means that startups are revolutionizing the market leaving other organizations struggling to keep up.

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He adds:

“The whole fintech space is breaking down the old barriers to the way things are done, but we’re not going to see it adopted as quickly as we’d like.”

Banks Weary of FinTech

Across the globe different countries are embracing the FinTech industry as more industries realize the benefits that the blockchain can provide.

Yet, while banks are beginning to see the benefits too they are doing so at a much slower pace. Not only that, but limited trust in the sector is showing that banks have a long way to go before they embrace the technology completely.

Many, however, may see this approach as the best way forward. After all, you only have to look at the result of the DAO hack to see that concrete measures need to be in place to ensure the safety of a decentralized system from hackers.

Of course, banks are working at implementing the blockchain into its services even if they are doing so at a cautious pace.

The UBS wealth chief announced last month that banks are now focusing on working with FinTech companies instead of regarding them as competition.

This news comes in light of the fact that many European FinTech firms believe that banks are lobbying against the EU PSD2 regulation that would force banks to open up access to payment account information to third parties such as financial technology firms.

This would essentially help customers put more trust in FinTech companies, but many of the firms believe they are not keen to share the information.

As a consequence, the adoption pace is much slower than many would like to see, but the fact that it’s happening at all is a positive as the benefits and the collaboration are slowly realized.

Featured image from Shutterstock.

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Edward Talliot

Edward Talliot

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