Competing with fintechs the way to go

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Traditional mortgage advisory companies have been told to take the lead from fintechs in becoming more agile, innovative and aggressive.

Thursday, January 29th 2026, 5:00PM 2 Comments

by Sally Lindsay

Fintechs, and other fast moving new entrants, are encroaching on financial services companies, including mortgage advisory firms, PwC’s  2026 Global CEO Survey reveals.

More than 50% of chief executives in the global financial services sector say they are most worried about whether their company is transforming fast enough to keep up with tech/AI.

CEOs across all industries cited this as a top concern in the survey, but financial services chief executives were more than 10 points higher than the global average.

Of the chief executives surveyed across 95 countries in the $10 trillion financial services sector that level of concern makes sense in terms of disruptions affecting the industry, PwC says.

To compete with fintechs, traditional players are being urged to streamline their processes and work in new ways with the right risk controls in place at all levels of the company, including leadership.

This is something that can’t be delegated, the global accountancy/professional services firm says.  Senior teams need to spend more time focusing on change and innovation even as they continue to execute business as usual.

That is big challenge, but it is the only way firms can reinvent fast enough to keep place in a changing market, it says.   

Sector shifts

One major shift in the sector is the rise of private credit where non-traditional players, such as private equity firms and insurers, increasingly offering commercial loans.

That approach can benefit borrowers and investors, but it erodes market share for banks in a business they have long dominated.

Tokenisation is another potential threat to financial services. This technology uses digital tokens to represent ownership of tangible or intangible assets on a blockchain – stocks, bonds, cash or crypto currency.

It simplifies things like asset transfers, but it threatens incumbent firms by reducing the need for conventional processes and controls.

Both private credit and tokenisation show how traditional industry boundaries are blurring and putting value in motion.

These shifts create risks for traditional players but also opportunities if they can reinvent themselves quickly enough to capitalise.

Financial services and mortgage advisory firms must build agility into their thinking and processes. Close to a third of chief executives say their company has significant tech constraints and one in five say their internal politics are excessive – higher than average on both accounts.

Not much in the way of returns

The  survey also reveals 48% of financial services and mortgage advisory firms have begun competing in new sectors over the past five years – higher than the average across all industries.

Most aren’t yet seeing a financial return from investments in AI. While close to a third, 30%, report increased revenue from AI in the past 12 months and a quarter, 26%, are seeing lower costs, more than half, 56%, say they have realised neither revenue nor cost benefits.

Asked about the extent to which their organisations are deploying AI across the business, a relatively small proportion of CEOs say they’re applying it to a large or very large extent to areas such as demand generation, 22%; support services, 20%; the company’s products, services, and experiences,19%; direction setting, 15%; or demand fulfilment, 13%.

PwC says its work with organisations confirms mounting evidence  that isolated, tactical AI projects often don’t deliver measurable value.

Tangible returns come from deployment consistent with company business strategy.

This, in turn, demands strong AI foundations, including a technology environment that enables AI integration, a clearly defined road map for AI initiatives, formalised responsible AI and risk processes, and an organisational culture that enables AI adoption.

Data from this year’s survey shows the one in eight companies achieving both additional revenues and lower costs from AI are furthest ahead in building these foundations.

They are also applying AI more extensively across different areas of the business. For example, 44% of those companies have applied AI to their products, services, and experiences, compared to only 17% for other companies.

PwC global chairman Mohamed Kande says this year is decisive for AI. “A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots.

“That gap is starting to show up in confidence and competitiveness—and it will widen quickly for those that don’t act.”

He says in periods of rapid change, the instinct to slow down is understandable – but it is also risky.  

“The value at stake across the global economy is increasing, and the window to capture it is narrowing.

“The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most,” he says.

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