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

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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.

Richard Kastelein

About Richard Kastelein

Founder, Publisher and Editor in Chief of Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC, Richard Kastelein is also an advisor with a number Blockchain startups doing ICOs including DECENT.ch, Inchain, Humaniq, Chronobank, eGaas and others.

He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List. As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven etc, where he helped spread the cause for Blockchain technology and crypto-currency and, consequently, has built a notable network inthe scene.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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