Fintech is at the forefront of the technological revolution in the banking industry, completely reshaping the status quo. Over the last few years, fintech has gained momentum in the the banking industry by making financial services faster and more accessible for businesses and consumers. Banks will have to innovate to keep up, or be left behind.
As our world becomes increasingly more digital, the banking industry needs to keep pace with the consumer need for a digital experience. Fintech offers consumer-centric platforms that enhance accessibility, convenience, and tailored products to address customer need. Over the next decade, millennials will take on a more significant role in the economy and change the way we see financial services.
Cavallo from CIO said, ”[The millennial] preference for a state-of-the-art customer experience, speed, and convenience will further accelerate the adoption of fintech solutions.” With these millennial standards in mind, we can expect to see fintech emerge in financial sectors such as consumer-centric payments, personal finance management, lending, investments, and core banking.
Other than being consumer-centric, fintech is emerging because:
It’s easy to get started. A recent survey done by Dealsunny revealed that 44% of customers that adopted fintech solutions did so because of how easy it is to get started. To set up an account, users simply need to enter an email address, download an app, or fill out an online form. The days of waiting in long lines and spending hours filling out piles of paperwork are over.
It accommodates low rates and fees. In the same survey, fifteen percent of customers adopted fintech because of attractive rates and fees. Services are not only cheaper for customers but retailers are also happy and willing to accept payments in cryptocurrencies. Fintech is saving customers money with services that are of higher quality than current paper-based processes.
It grants access to different products and services. A few years ago, the average person couldn’t afford or understand many products and services, but today anyone with a mobile device can lend & borrow, manage their assets, and play the market, while getting real-time information. Fintech innovation is dominating existing established solutions and will continue to change the name of banking.
It facilitates increased transparency. Better transparency has sparked fintech innovation such as blockchain and digital currencies. Also, data transparency within a company creates a more efficient and communicative environment. Increasing visibility in financial processing allows for greater opportunities for growth.
It allows for faster processing. Payments are more efficient, secure, and transparent than ever before. Blockchain technology has increased security, while eliminating unnecessary intermediaries and reducing international cross-border payment processing time from weeks to a day.
Fintech is emerging at a fast pace and is expected to reach maturity by 2020. There is a bright future ahead for the world of fintech as it is reshaping and rethinking financial processes. Banks will need to keep up with the technological innovation of fintech companies if they want to compete. Zikher ready to help financial institutions redefine banking.