Silicon Valley Bank Survey says Fintech Companies Cite Regulatory Hurdles as Biggest Impediment to Growth in 2016

56
ADVERTISEMENTScreditx RoboRobo Dreamtime

Share with:


According to a survey released today by Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, fintech company founders and investors expect regulatory issues to be the biggest impediment to their success in the coming year. The survey examined issues that are top of mind for startup companies interested in disrupting traditional financial services.

“The attendees at the Fintech Mashup event validated what fintech companies around the world have been voicing in recent years – an effective regulatory and compliance strategy is critical to their ultimate success,” said Bruce Wallace, Chief Digital Officer of SVB Financial Group. “As innovators continue to redefine innovative operating models across the financial services sector, it is important to us to help our clients navigate challenges as they identify opportunities to improve financial services for consumers and businesses.”

The survey of 101 company founders and investors in the financial technology space was conducted at Silicon Valley Bank’s Fintech Mashup on November 3 in New York City. During a series of presentations and panel discussions at the event, top executives joined SVB from companies such as Circle, InVenture,LearnVest and MasterCard and shared their insights in areas including alternative finance, digital currencies and commerce, API banking, payments, and compliance, among other topics.

Findings from the survey:

  • Regulatory Hurdles Challenge Fintech – Nearly half of the survey respondents (43 percent) said regulatory issues were their biggest impediment, followed by reticence by corporations to adopt new technology (24 percent), changing consumer behavior (18 percent), and access to funding (15 percent).
  • Growth Anticipated in the US – Despite regulatory hurdles, the United States is viewed as the market with the greatest opportunities for growth and expansion for financial technology (36 percent), ahead ofAsia (22 percent) and Europe (14 percent).
  • Experts Mixed on Blockchain – Respondents were divided as to whether blockchain “is a technology looking for a problem to solve” (46 percent) or one that “is providing a solution for financial institutions” (54 percent).
  • Funding is Available – The majority of respondents (55 percent) believe that the financial technology sector is funded appropriately. In fact, only 17 percent feel that the sector is currently over-funded.
  • Industry Disruption to Continue – When asked to identify the greatest opportunity for fintech disruption, “infrastructure” (including blockchain and API) was the top pick according to 24 percent of respondents. Results were nearly evenly split between payments (23 percent), insurance and alternative lending (both at 20 percent). Wealth management and robo advising were identified by just 13 percent of respondents.

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) – Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, “The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

Visit Website
View All Articles
advertisementBlockchain Expo