Wirecard Scandal Dents Non-Bank Trust
(22 July 2020 – Europe) Wirecard’s recent accounting fraud has provoked significant scepticism towards the Fintech industry as a whole, new research from East & Partners has found.
East & Partners (East) newly released Anytime Question platform analysis found that the Wirecard scandal has adversely impacted CFOs and corporate treasurers trust in non-banks.
73 percent of corporates in Germany, and more than half in the United Kingdom (UK), have expressed reduced levels of trust in non-bank payment providers.
Many would agree that Fintechs have already found their place in the corporate payments market throughout Europe, however, the negative press surrounding Wirecard’s inappropriate conduct has only held the industry back from mounting a genuine challenge to incumbent banks.
“Fintechs have had a lot to prove – coming into charted territory as a non-bank player has been somewhat challenging for them, even for partnerships with traditional banks” commented East & Partners Europe Market Analyst, Pierre Sokoya.
“Though some startups have begun to cut through, news like this has been unhelpful. To overcome this situation, it’s important for non-banks to build a reputation of integrity as this helps corporates understand their ethos.” he also added.