Will FinTech Bring Revolution in the Financial Services Industry?
Customers are important, and experience is everything. Customers don’t distinguish between smaller and larger businesses, nor do they distinguish between channels once they receive the highest level of satisfaction and the highest caliber of service. At that point, they anticipate receiving the same level of service from a small business as they do from a larger one. Digital transformation efforts may be affordable for bigger enterprises with significant finances, but not all firms can afford such luxuries.
New Methods Of Business
FinTech is a ray of light for these businesses, who are always seeking new methods to make their company dreams come true. It opens up new business opportunities and improves the customer experience with sophisticated solutions that they previously could only imagine.
FinTech is a prime illustration of how technology can level the playing field since it has allowed many start-up companies to compete with huge, well-established banking organizations in banking services, which was previously the purview of banking and financial institutions. The old financial institutions are still competing in the digital era; therefore, this does not mean they are losing ground. But banks can’t adopt new technology as rapidly as FinTech firms because of their antiquated systems and rigid regulatory frameworks. Following are a few examples of how technology is revolutionizing the financial services sector:
Follow your consumers where they are:
FinTech company were the only ones that took this seriously since they were aware that the current generation is always online and that cell phones have fundamentally altered their expectations. With the help of individualized services and pertinent information provided directly to devices, online, social, and mobile technologies have opened up new options for FinTech organizations to communicate with their audience and manage interactions more successfully online. Customers have high expectations and want the same experience they receive from Amazon, Facebook, etc.; therefore, traditional banks should step up speed when it comes to luring them in.
With digital wallets, exchanging money has never been simpler
PayPal, Paytm, GooglePay, and ApplePay all have something in common that makes it feasible to transfer any amount to anybody with the click of a button without going to a bank, which was not conceivable a few years ago. The way people manage money nowadays has radically altered thanks to mobile payments or peer-to-peer programs. It’s understandable why most smartphone users often utilize mobile payment applications since they’re easy to use, convenient, flexible, and give much-needed security. Additionally, these P2P applications feature their users with affordable and anytime-anywhere financial services.
Getting to unbanked and underbanked people
You should utilize mobile money applications if you don’t have time to visit the bank or are sick of waiting in line outside ATMs. But since there are so many people, particularly in rural regions, it is unlikely that everyone will have access to banks and ATMs. These mobile money applications provide a wealth of chances for making cashless transactions and using banking services while relaxing on the go. By giving underbanked and unbanked people access to financial services, fintech is closing the gap.
Altering conventional financing
There has been little prospect of receiving a prompt answer, and even after all this time, there is still no guarantee that you will get a good response, which has been the hallmark of the conventional lending procedure for many decades. Even if everything goes well, you probably won’t get the money any sooner.
But all of this is history now because FinTech solutions made borrowing money simpler and faster. You don’t need to go to the bank anymore, fill out tonnes of paperwork, and wait days to hear the good news. Borrow money in hours from the comfort of your home instead of the weeks or months it used to take. Peer-to-peer lending has been successful because of digital technology, which has allowed FinTech businesses to keep costs low and provide goods and services specifically catered to certain target markets’ demands. One alternative that offers plenty of advantages to lenders and borrowers is peer-to-peer lending.
Despite being a relative newcomer to the financial sector, financial technology has already begun to transform it. FinTech is far from ideal, however, and several problems, including security, will affect its development in the future.