The FinTech revolution is on the competitive verge and banks needs to collaborate with the FinTech firms to deliver improved customer experience and a more organized workflow.
Fintech, the service firms whose solutions are built upon the latest technology is here to stay longer. Fintech has changed the way the finance and banking tasks were performed a decade ago. With the rise of Fintech, the financial sector is in the mid of the revolution.
Technology and big data have made it easier to bring investment counseling to the people and this implies that the financial services are now becoming quick and accurate. No doubt, the future of Fintech will be very much decided by its performance in the current era. With wider recognition in the finance and banking sector, the finance technology firms seem to be growing with every single innovation.
With the fintech revolution, the finance sector becomes more collaborative as it gets the chance to serve people in different ways. Some of the major sectors are discussed below:
A right FinTech platform gives people the opportunity to trade themselves using various resources. Rather than hiring the services of investment firms or broker, people consider searching the pros and cons of any policy using online resources. In fact, some fintech companies are able to offer much affordable fee and best investment plans with remarkable interest rates in comparison to that offered by stockbrokers and typical banks.
Financial technology is allowing people to consult the experts and buy any product online. Mobile payments right from the comfort zone make it easier to shop the financial products and services from reliable resources. With so many digital wallets available out there, the customers can pay for things digitally. The innovations are not just happening in the frontend, but they are also operational inbackend arenas.
Personal Finance & Savings:
With the opening of so many fintech startups, the customers do not have to make large savings at any single point of time as they are now given the option to save even little amounts with good benefits. For those who believe in saving under the mattress, the fintech startups have come as a reliable way to lock the change and turning the little savings into the bigger ones. The fintech firms are undoubtedly a good savings option for students and housewives.
Personal Finance & Online Budgeting:
Not only millennial, but entrepreneurs and middle-class people prefer online banking over a physical visit to the branch and fintech firms for payments and transactions. With the availability of the bank mobile apps, people now consider managing their accounts and even executing transactions online as these apps are highly responsive to smartphones, tablet, and laptops. Using interactive tools, customers can now manage their budget to meet saving goals efficiently in the specified time duration.
How FinTech is Bridging the Gap:
- In the lack of a comprehensive platform, the banks fail to adopt and implement large-scale innovative techniques due to short of talent, traditional trending and lack of dexterity.
- The knowledge and proficiency of FinTech companies will benefit the banks and help them leverage innovative technology for developing insights into the customer’s growing demands.
- With the launch of an all-new monetization platform and upgraded business processes, the banks will get the opportunity to unlock innovative growth opportunities.
Banks are happily collaborating with the FinTech players and also emphasizing on the partnership with external resources for advancement.
FinTech is undoubtedly an important aspect for finance industry for growth and development. With a technological edge over the banking organizations, FinTech delivers more pioneer solutions with advancement in technology. With more and more investment flowing into FinTech companies, the technology will grow inevitably, leading to remarkable growth in the finance sector.
The FinTech entrants are much faster than the banking organizations in offering reliable, cost-efficient and convenient alternatives to the traditional banking solutions including payments and transactions. Customers are moving to the digitalized way of banking and thus the banks require rethinking about their digital strategy in place.
Banks must adopt FinTech solutions in their services in order to offer a better customer experience. The technology innovation has helped banks in digitizing its processes by automating the entire workflow. The customer gets the convenience to bank anytime and anywhere which helps them make informed decisions.
The collaboration of FinTech in the banking and finance sector will help mitigate the risks and handle critical issues effectively. The finance sector will stay compliant to current guidelines and changing dynamics to reduce the risks of frauds.
Undoubtedly, FinTech is expanding in the banking and finance sectors as it enables customers to handle their finances across geographical boundaries and time zones using smartphones and laptops through Wi-Fi and 4G networks.
With a lot of scope for collaboration, the banks will benefit from partnering with the fintech companies as they can then meet the rising demands of the customer more efficiently.