Organisations that have partnered with fintechs are reaping process efficiencies, but quite a number are still sceptical of their merits, Financial Standard's latest spot poll shows.
Almost half (46%) of respondents have seen a dramatic improvement in processes after partnering with a fintech. Only a minority (8%) however, noted any form of cost savings from a fintech partnership.
Interestingly, one-in-four (25%) firms that are using fintech services have yet to see any real benefits. Almost the same number (21%) said they don't plan to engage with fintechs at all.
Despite the Federal Government's effort to champion fintech initiatives to boost competition in the financial sector and provide consumers with more product choice, no respondent indicated intentions to engage with fintechs in the next 12 months.
Financial Standard reported that the new open banking regime will fundamentally change the way financial advisers interact with consumers - but several hurdles must be cleared before any true potential is realised.
The expected multi-billion dollar implementation of open banking will give consumers greater access to and control over their banking data - allowing them to share it with wealth managers for new or better services.
However, giving consumers more control does not automatically translate to immediate benefit.
In its submission to Treasury's review of open banking in Australia, Fintech Australia described the initiative as vital but notes several shortcomings to customer data collection and reuse.
It said reports from its 170 members indicated between 10 to 50% of potential customers baulking at handing over their banking passcode.
There have also been concerns that banks are advising customers against giving their passcodes as a means of stifling competition, the association said.
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