The emergence of the internet and new technological advances have remarkably transformed the Banking sector. Each breakthrough to the date has directly or indirectly affected the Banking sector and has molded the industry into what is popularly known today as ‘Fintech.’
Technology has merged with financial institutions to cater to the ever-rising needs of customers in the 21st century. FinTech usually focuses on creating innovative solutions that meet client needs and enhance their banking experience. Online Banking, Mobile Banking, etc., are some of these solutions that are prevalent today and used routinely.
So, what do you think the future of these FinTech looks like?
In this article, let’s dig deep and understand how FinTechs are disrupting the traditional banking sector.
- Digital Banking
Have you ever stood in long queues and waited for your turn just to make a deposit in the bank?
Well, with Digital-only banks, you don’t need to worry about queues or bank opening and closing times. As the name suggests, these banks operate and provide their services digitally. You just need your phone, laptop, or tablet to make transactions.
- Easy to access
With FinTech, it’s all about customers and their needs. They aim at embracing solutions that offer a quick, effective, and robust fix to any need a client might have. Unlike traditional banking, Fintech’s want you to have access to banks 24/7, and you can even opt for these services via social media!
These FinTech’s are managing segments that have been neglected by traditional banks in terms of offerings. Thus, they are striving hard to serve the customers with:
- That have a poor or no credit score
- Marketplaces that struggle to secure a loan from traditional banks
- Personal finance management tools
- Open Banking: A door to new opportunities.
Furthermore, Big Data and Blockchain technologies play a significant role in the changing dynamics of traditional banking. You don’t need a trusted third party anymore. These technologies help in decentralizing the banking system and making transactions more transparent and secure. The concept of Open Banks is around the corner.
- Customized and Secure service
‘Serve first, and sell later.’ is a mantra that FinTech is rapidly adapting. Providing customers with tailor-made solutions helps improve customer satisfaction. Chatbots have also become an integral part of banks and add value to the overall user experience.
With the majority of bank transactions taking place online or via applications, security is of great importance.
Biometrics based on unique physical identifications like fingerprints, face detection, the retina of the eye adds an extra layer of security to safeguard the data. People are now shifting from the usage of passwords and are more comfortable using biometrics.
The evolving nature of FinTech continues to bring innovative solutions to shape the baking sector. FinTech is flourishing and creating many opportunities. The tech-oriented approach of FinTech makes banking boundaryless and provides the best consumer experience.