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Goodwin Releases Its 2020 Fintech Report, Finds Data and Analytics the Top Priority for Companies

Earlier this week the global law firm Goodwin released its inaugural survey of the financial technology industry, “Fintech 2020: A Global Survey on the State of Financial Technology”. This report reviews key fintech trends based on responses from more than 700 senior decision-makers across the accounting, banking, financial services and investment, and insurance industries in the United States, United Kingdom, and continental Europe.

The report takes a deep dive into the key drivers behind the fintech sector’s current growth trajectory as well as the most likely disruption forces on the horizon.

“Our global survey confirms that while the fintech sector continues to grow steadily, much disruption is still to come,” said Scott Joachim, co-chair of Goodwin’s fintech practice. “As digital transformation of financial markets accelerates at breakneck speeds, fintech presents — in equal measure — significant opportunities and challenges for both investors and innovators around the world. Goodwin’s inaugural global fintech survey sheds light on some of the most pressing issues facing this vibrant sector at the intersection of capital and innovation.”

The report’s key findings include:

  • More than half (54%) of respondents rank data and analytics as their top priority for fintech adoption, highlighting the importance of analytical information about financial performance, trends, and developments.
  • At the same time, nearly half of the respondents (47%) rank cybersecurity as the largest threat to fintech adoption, indicating that although fintech offers a compelling alternative to conventional financial solutions, it presents a new set of challenges.
  • Existence and understanding of clear regulatory and legal frameworks are key drivers (22%) for enabling fintech innovation.
  • One third of respondents (28%) each rank private equity and venture capital, and banks and asset managers as the top drivers of capital investment into fintech over the next three years. Capital from institutional funds and big banks is critical to enabling innovation in fintech start-ups.
  • While 39% of respondents indicate that adoption of fintech is a high priority for their companies, a third of the companies (29%) are reinvesting only 10% or less of their profits into fintech development, pointing to a gap between awareness and actual resources dedicated to fintech development.

The data and findings in the report are based on a web survey that GlobalWebIndex, a market research SaaS company, conducted on behalf of Goodwin in the first quarter of 2020.

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