FinTech is a new concept. However, no less than 31 percent of the Dutch SME entrepreneurs expect that FinTech companies will take over the position of banks within five years. Furthermore, according to 68 percent of the surveyed entrepreneurs, banks have done too little on innovation in the past five years. This and more can be concluded from the survey we did among 1.059 entrepreneurs in the Netherlands.
Financing in 5 years
Whereas in the past banks (practically) had the exclusive right to financial services for SMEs, the number of alternatives is growing. Every year, more and more FinTech companies are entering the market. Each with its own advantages and disadvantages. Therefore, one in three entrepreneurs expect these innovative FinTechs to have taken the place in the market of banks within five years. The information and communication sector has the most positive image of the future of FinTech: 37% of the entrepreneurs from this sector think that FinTechs will take over the market within 5 years.
Investing in innovation
More than two-third of all respondents feel that banks have not innovated enough in the past five years. The greatest dissatisfaction is found among entrepreneurs from the transport and logistics sector. Entrepreneurs from the business services sector are also generally dissatisfied with the recent innovations at banks.
The visual shows how entrepreneurs in other sectors think about innovations at banks in the past five years.
Outdated technology at banks
Earlier, we saw that a large proportion of the entrepreneurs surveyed experienced a lack of innovation in banks.
63 percent of the respondents believe that banks are using outdated technology and systems. As a result, they are not able to respond quickly to requests of entrepreneurs. According to the study, entrepreneurs in the Randstad (economic region in The Netherlands) are the most affected by this. 67% of the respondents from the Randstad has indicated that banks are not able to respond quickly enough.
Alternatives in financial services
Despite the confidence in FinTech and the dissatisfaction with the lack of innovation of banks, no less than three quarters of the respondents still do not see a good alternative for banks when it comes to financial services to entrepreneurs.
In the information and communication sector, entrepreneurs are the most positive about the alternatives. The visual shows how other sectors feel about this.