FinTech widely recognised in the Channel Islands

Thursday 01 February 2018

EY has carried out a survey on the state of FinTech in the Channel Islands and 88% of firms which responded said they view FinTech as an "opportunity" for their organisations.

Respondents identified business efficiencies as the principal driver for using FinTech, with data integrity, transaction speed and security also highlighted as advantages of adopting innovative technological solutions.

Talking about the survey, EY associate partner, Ove Svejstrup, said: "figures suggest a high level of awareness of FinTech in the islands, as well as a desire to roll out FinTech products, but more needs to be done."

The survey, launched in June 2017, found that 84% of those surveyed across the Channel Islands are directly involved in decision making within their organisations.

Some of the key findings are:

• 88% of respondents view FinTech innovations as an opportunity for their business

• 63% of respondents think that the current level of information in the FinTech market is not sufficient

• 62% of Channel Islands businesses surveyed have implemented at least one FinTech solution

• 61% of respondents would opt for an off-the-shelf solution or partner with a third party rather than develop one in-house

Respondents identified business efficiencies as the principal driver for using FinTech, with data integrity, transaction speed and security also highlighted as advantages of adopting innovative technological solutions.

Mr Svejstrup, said: "Awareness of FinTech is clearly high within the islands, as is the recognition of the benefits it can provide, but this alone is not enough. 63% of respondents said that the current level of information on the FinTech market is insufficient. With events such as FinVention taking place, there is already talk of FinTech in the market however the results suggest that more work needs to be done. Professional services firms and law firms should work with FinTechs to explore opportunities and look to educate the industry. The willingness to embrace the solutions on offer stands the islands in good stead in the global marketplace.”

EY identified six main FinTech solutions – Alternative financing, Blockchain, InsurTech, PaymenTech, RegTech and Robo-Advice – and charted respondents’ levels of understanding of each of these on a scale of one (no understanding) to five (very good understanding). The highest-scoring solution was RegTech with an average response of 2.91 and respondents therefore displayed a below-average level of understanding.

A full copy of EY’s FinTech in the Channel Islands survey can be found here

Pictured: Mr Svejstrup