Will financial technology bring a revolution in the financial services industry?
When it comes to customers, experience is everything. Customers do not differentiate between small or large organizations, nor do they differentiate between channels, once they enjoy the best level of satisfaction and a better quality service, they expect the same type of experience from a small company as from a larger one. While larger organizations with deep pockets can afford digital transformation initiatives, not all companies enjoy that luxury.
For organizations constantly looking for ways to turn the entrepreneurial dream into reality, FinTech is a beacon of hope that opens the door to new business possibilities and elevates the customer experience with high-end solutions that they could only dream of before.
They say that technology is a great leveler and there cannot be a better example than FinTech because banking services, which was once a domain of banking and financial institutions, has seen many new players in this space competing with the companies. large and established banking corporations. But this is not to say that traditional banking institutions are lagging behind in the digital race, because they are certainly in the race. But banks due to their legacy systems and regulatory frameworks are slow to change and cannot take advantage of emerging technologies as quickly as FinTech companies. Here are some of the ways technology is revolutionizing the financial services industry:
Go where your customers are:
No one took this more seriously than FinTech companies because they knew that the current generation is online all the time, thanks to smartphones that have completely changed their expectations. Online, social and mobile technologies have created new opportunities for FinTech companies to engage with their audience and digitally handle interactions more effectively, with personalized services and relevant information delivered directly to devices. Traditional banks should improve quickly when it comes to attracting customers because consumers expect a lot and want the same kind of experience they get from Amazon, Facebook, etc.
Digital wallets: currency exchange has never been so easy
What is common between PayPal, Paytm, GooglePay and ApplePay allow you to send any amount to anyone with the click of a button without visiting the bank, something that was not possible a few years ago. Mobile payments or peer-to-peer applications have completely changed the way users handle money today. It’s no wonder that most smartphone users regularly use mobile payment apps because they are easy to use, offer much-needed convenience, flexibility, and security. Furthermore, these P2P applications have provided anytime, anywhere banking services to their consumers and in a cost-effective manner.
Reaching the unbanked and unbanked
You don’t have time to go to the bank or you’re tired of standing in long lines outside ATMs, then you have good reason to use mobile money apps. But there are a lot of people, especially in rural areas; access to banks and ATMs is a long shot. For these types of mobile money applications, the applications offer enormous opportunities to carry out cashless transactions and enjoy banking services from the comfort of the mobile. FinTech is closing the gap by helping the unbanked and the unbanked to gain access to banking services.
Discontinue traditional loans
For several decades, the traditional loan process was characterized by completing loan application forms, submitting a variety of documents, and there is little chance for a quick response, and even after all this time, you are not likely to get a positive response. And even if everything goes well, it is unlikely that you will receive the funds sooner.
But all this is a thing of the past, thanks to FinTech solutions, borrowing money became easier and faster. You no longer have to visit the bank, do a lot of paper and wait days to hear the good news. Borrow money in hours, which used to take weeks or even months without all that stress and strain, all from the comfort of home. Digital technology is at the heart of the success of peer lending and that has enabled FinTech players to keep costs to a minimum and offer products and services designed to meet the needs of specific target groups. P2P loans are one such solution that promises to provide many benefits for both borrowers and lenders.
Fintech is a new kid on the finance industry bloc, but it has already become a changing face of the finance industry. But as with any FinTech technology, it is far from perfect and there are several factors such as security that will determine its growth trajectory.
