Today one of the oft-heard words that appear to have stormed into the financial sector and disrupted the banking industry is Fintech. Simply speaking, the word suggests a sort of advanced technology which is meant to make financial tasks easier for people. For many, it is a replacement to traditional paper-driven procedures and activities which sum up a great part of the banking industry.
From starting with the aim to control transactions, manage accounts and databases to currently taking over the banking industry with improved business performance and better customer experience, Fintech has come a long way. And according to experts, it is here to stay longer than imagined. However, it will be incorrect to call it a rival to traditional banking; rather Fintech supported by upgraded technology and quick execution capacity has set the stage for fair competition for banks. So, what are the changes brought forth by Fintech? How do they transform customer experiences? For answers to all such questions, keep reading.
An end to paper-based transactions
Initially, there was an attempt to contest the trend of using technology for all sorts of financial work around the world. But with the emergence of cryptocurrency, banking giants such as HSBC, UBS and Barclays are planning to create streamlined payment processes with the help of blockchain technology to ameliorate banking functions. This technological upgrade, however, has eliminated the use of paper for banking operations like transferring money, stock investment and handling accounts. Instead, it offers settlement coins like Bitcoin and Ethereum to customers for secure cashless transactions.
Gone are the days when you had to visit bank branches and stand in queues to talk face-to-face with the employees to get their services. Fintech offers various ways to get financial services at the comfort of your home. Today, many famous banks worldwide are mulling over closing their traditional branches and take banking services and functions to the online platform. This is a great way to cut down payroll and rent costs for both parties, enabling customers to use their time more effectively.
One-stop solution for customers
Could you ever imagine that is possible to get multiple benefits such as banking, stock investment, insurance and so on under the same roof? Thanks to financial technology! Now you can experience the benefits of open banking ecosystems to check your financial status digitally. With this online finance management technology, you can find, compare and choose products at the same place.
Making payments got simpler
Online payment is another benefit that comes with Fintech’s invasion into the banking section. You can use a tool that controls multiple aspects of banking and helps you get various goods and services at your convenience. So banks are collaborating with third-party providers to provide digital payment options through financial services. On the other hand, Fintech companies are developing a string ecosystem to combine IoT (Internet of Things) with banking and payment requirements. This move will enable payment through IoT devices such as smartphones, wearable’s, etc.
A possible future tie-up between banks and Fintech
The banking scenario has changed a lot over the decade. This is all because of the mercurial rise of Fintech. Now for the survival of any financial establishment like the bank, it is imperative to clutch on to the technological advancement and thus stay afloat in the market. Instead of choosing the route to disruption, it is only with a successful collaboration between banks and Fintech ventures that both the parties can merge the best of each and survive in the long run.