PricewaterhouseCoopers has released Global FinTech Report pointing at blockchain’s crucial role in shaping the industry’s near future. However, financial services do not seem prepared for it to come.

Having surveyed 544 CEOs and top personnel of financial companies from 46 countries, PwC summed up their response in the report. The survey unveiled companies’ general unawareness of the blockchain technology, with about one fourth of the respondents pleading ignorance. More than a half (57%) admitted they were unsure whether they would invest in the technology, although nearly the same number of respondents claims they can see its importance.

“This lack of understanding may lead market participants to underestimate the potential impact of blockchain on their activities,” the authors believe, adding that the blockchain technology has all the potential to result “in a radically different competitive future in the FS (Financial Services – CoinFox) industry, where current profit pools are disrupted and redistributed toward the owners of new, highly efficient blockchain platforms.”

While traditional financial institutions seem to remain resistant towards the innovation, PwC highlights the fact that startups in this sphere are virtually flourishing. The Global Blockchain Team has identified more than 700 companies entering the industry, calling 150 of them “worthy to be tracked” and predicting that some 25 “will likely emerge as leaders.”

PwC also points at the perspective the blockchain technology and smart contracts bring to the Internet of Things:

“Imagine a car insurance that is embedded in the car itself and changes the premium paid based on the driving habits of the owner. The car contract could also contact the nearest garages that have a contract with the insurance company in the event of an accident or a request for towing. All of this could happen with very limited human interaction.”

The report’s general conclusion is that the currently insufficient understanding of the technology “poses significant risks” to the existing businesses. So, to keep up to date, they are strongly encouraged to be pro-active.

Maria Rudina