Banking and financial services leaders in Singapore are preparing to increase their spending to 13.57 percent to counter fintech players, according to a survey by recruitment firm Robert Half.
The emergence of fintech startups and disruptive technologies are challenging the traditional business model by offering financial services for peer-to-peer payments and loans to investment management and crowd funding.
According to the survey, 40 percent of financial leaders in Singapore said the biggest impact of fintech will come from online investments. This is followed by challenger banks (18 percent) and peer-to-peer lenders (12 percent).
"The challenge for banks and financial institutions is to ensure they do not lose their customers to new firms offering easier, cheaper or more intuitive ways to compare and acquire the financial services they need," said Stella Tang, managing director of Robert Half in Singapore. "Singapore banks and financial institutions are actively countering this threat by upgrading their own user interfaces and moving more of their interactions to mobile and digital. That's why financial services professionals with experience in these new technologies are in high demand," she added.
Despite the challenges posed by fintech firms to financial institutions, Tang believes that "there is still a long way to go before they topple the established banking hierarchy in Singapore."
The survey polled 400 financial services leaders in Singapore, Hong Kong, Japan, and United Kingdom.
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