FinTech companies are reporting significant productivity improvements from artificial intelligence, with 86% identifying positive AI-driven gains across technology, data and product functions, according to a new global study by the Cambridge Centre for Alternative Finance. The figure places FinTechs 18 percentage points ahead of traditional financial institutions, where 68% reported positive productivity impacts across the same functions.
The research examined AI adoption and its impact across financial services, drawing responses from 203 FinTechs and 149 traditional financial institutions across 151 countries. The findings show that AI is producing productivity gains across multiple business functions, although the impact remains uneven. FinTechs are generally reporting stronger outcomes than traditional financial institutions, particularly in technology, data, product and revenue-facing activities.
The report also highlights that productivity improvements have not necessarily translated into equivalent profitability gains. Only 40% of respondents reported increased profitability from AI, while 43% reported no change. FinTechs performed better than traditional financial institutions on this measure, with 56% reporting higher profitability compared with 34% of traditional financial institutions.
Despite the productivity gains, financial institutions continue to face challenges in scaling AI adoption. Data quality, access to skilled talent and legacy technology infrastructure remain major barriers, while privacy, data protection, unreliable AI outputs and model-related risks remain among the industry’s leading concerns. The study also points to a widening gap between advanced and emerging economies, with advanced economies nearly seven times more likely to reach the transforming stage of AI adoption in financial services.
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