Will FinTech 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 highest level of satisfaction and the best quality of 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 those organizations that are constantly looking for ways to turn the entrepreneurial dream into a reality, FinTech is a beacon of hope that opens the door to new business possibilities and elevates the customer experience with high-end solutions they could only dream of before.

They say that technology is a great equalizer and there can be no better example than FinTech because banking, which was once the domain of banking and financial institutions, has seen many new players in this space competing with banking corporations. large and established But this is not to say that traditional banking institutions are falling behind in the digital race, because they certainly are 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:

See 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 manage interactions digitally more effectively, with personalized services and relevant information delivered directly to devices. Traditional banks should pick up fast when it comes to attracting customers because consumers expect a lot and want the same type of experience they get from Amazon, Facebook, etc.

Digital wallets: exchanging money has never been easier

What is common between PayPal, Paytm, GooglePay and ApplePay allows 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 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 underbanked

If you don’t have time to go to the bank or are not tired of standing in long queues outside ATMs, then you have a 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 such mobile money applications, there are tremendous opportunities for cashless transactions and banking services from the convenience of mobile. FinTech is bridging the gap by helping the unbanked and underbanked gain access to banking services.

Disruption of traditional lending

For several decades, the traditional lending process has been characterized by filling out loan application forms, submitting a variety of documents, and there is little chance of a quick response, and even after all this time, there is no chance that you will get a positive response. . And even if all 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 is easier and faster. You no longer have to visit the bank, do a lot of paperwork 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 tension, all from the comfort of your home. Digital technology is at the heart of the success of peer-to-peer lending and that has enabled FinTech players to keep costs to a minimum and offer tailored products and services to meet the needs of specific target groups. P2P lending is one such solution that promises to bring many benefits to both borrowers and lenders.

Fintech is a new kid on the block in the financial industry, but it has already become a changing face of the financial industry. But as with any technology, FinTech is far from perfect and there are various factors such as security that will determine its growth trajectory.