Fintech

Fintech is shaping the future of Banks

With the globalization of the world economy, which has already restructured the way businesses were conceived, Fintech is relentlessly striving to make it even better by means of automatizing the delivery and utilization of financial services through technology. With the rapid increase in the digitization, technologies have certainly gained the upper hand in the global market segment to influence everything it deems fit.​​​ For instance, Fintech is being massively employed to help the diverse sectors of the economy, and consequently the society as a whole.

For instance, even other businesses like commerce, hospitality, or transportation are adopting new technological ways to obviate operational inefficiencies. And in response, these technological breakthroughs are helping these businesses manage their financial operations, processes, and thereby the overall experience of the consumers and the employees alike. By exploiting these sophisticated algorithms disguised as technology through computers and smartphones, businesses have actually advanced beyond their expected horizons.

See, Also: Fintech Report 2019 – 20

How Fintech is shaping the future of Banks

Fintech has transformed the art of providing world-class financial services. The convergence of both finance and technology has resulted in a phenomenal change which in further response has heightened the pace of evolution and reshaping of the financial as wells as the Banking sector.

And if there is a sector that is the most advantaged due to the introduction of Fintech, it is the small start-up enterprises. Due to that emphasis on developing innovative technology such as Online Banking and payments and overall financial management.

How is Fintech impacting the different areas of business?

Financial service providers have applauded the Fintech boom as it offered them increased efficiency for handling consumers, and also lowered the cost of providing these services. Moreover, it has promoted innovation that can be easily approached by the customer as well as the service provider to experience what it is like to run a business in 2020, or how is it like to receive facilities. To be more specific, below are the areas which are impacted by Fintech the most.

1. New offers to the prospective customers per their changing needs.
2. Building a good relationship with the customers by enhancing the interaction.
3. Griping the existing data and analytics.
4. Enhancing the business with refined operational capabilities.

Aspects of Fintech and how Fintech is shaping the future of the banking industry

1. Higher Customer Satisfaction: Fintech is rediscovering customer satisfaction and management of the banking business with equality importance. The merging of digital trends with customer expectations has resulted in authorizing the customer digitally. However, the major loophole is that still remains is that some industry players are rushing on outdated customer-oriented solutions, which is not the demand of customers these days.
2. Facilitating 24*7 customer service: Fintech is offering various services to the bank customer, e.g. 24*7 access, social media integration, and other online facilities. It is also providing a platform where prospective customers can compare and research the offers of the banks.
3. Providing robust solutions to the customer: By fathoming the urgent and engrossed needs of the customer, Fintech is able to provide smart and robust solutions to the customers in the banking business. Fintech has started expanding defined and highly effective solutions for banks that have managed to cover all the segments that had been neglected by banks in terms of offerings.
4. Providing value-added services: FinTech is developing value-added solutions and features that can easily be integrated with bank platforms through Application program interfaces. It allows the banks to make efforts for integrating and for streamlining the operational capabilities of the banks.
5. Accommodate Partnership: Globalization and increased competition between the banks and financial service providers has resulted in direct partnership across the Fintech ecosystem.
6. Emerging new banking models: Fintech is changing the banking industry in a better way by revolutionizing and by giving the people easy access to financial services.

Issues faced by the future Banks with Fintech revolution

For the first time, the revolution of Fintech in the banking business is giving millions of people access to financial services. However, new banking models are emerging with FinTech Companies, and Fintech firms are inadvertently disturbing the existing state of affairs associated with finance. And, unfortunately, educational and financial institutions are not preparing future bankers for these changes which are inarguably a critical need for sustenance.

The present need is to not only make the students in the finance sector aware of the shift but to make them learn how to leverage the power of technology in finance. At present, it is very much required to build the necessary skills from the very initial stage. As a result, it will help the next generation of financial professionals who are well versed in technology and its potential.

Conclusively, banking businesses should focus on domestic talent by collaborating with educational institutions to develop skills in the financial sector and technology.

Conclusion

Fintech is booming and has created a new and innovative way of interconnecting with the existing and prospective customers. As Fintech has transformed the banking business by providing smart services, better customer connectivity, and value-added services; Fintech is ruling the world and financial sector and it is important to adopt the technologies which are transforming the financial sector. Bankers are required to possess unique skills and innovations and by implementing the same for the new banking industry.