Financial institutions are taking the threat from the emerging fintech sector seriously, with 83 per cent of "traditional" institutions in a new survey conceding that more than 20 per cent of their businesses (on average) could be lost to standalone fintech companies within the next few years.PwC's Global FinTech Report also shows that a substantial proportion of incumbents are unsure about how to respond to some of the emerging technologies, such as blockchain.PwC surveyed 544 managers in financial services companies around the world (30 per cent of respondents were bankers). PwC Asia fintech leader John Shipman said he thought the survey might have underestimated the extent of the threat to established businesses, both here and overseas. "You can look at every part of the financial services value chain and see impacts. The loss of business could be far higher. And there is as much if not more disruptive potential in the Australian market."PwC canvassed managers for appropriate responses and found that the majority thought fintech developments should be incorporated into their own business strategies.More than half said it was important to adopt a "mobile first" approach and make their products and services available through mobile devices. About 30 per cent said they were engaging with fintech companies through partnerships. That was not without its challenges, including dealing with IT security, regulatory uncertainty, differences in business models, processes and culture.Respondents said fintech offered their businesses a number of opportunities, such as cost reduction, product and service differentiation, improved customer retention and additional revenue streams.Shipman said: "We tend to recommend a portfolio approach, with some VC funding, incubation, collaboration and so on."If there was one approach I had to go with it would be to collaborate with fintechs."