FinTech: Impact on Banks and Financial Services Industry

by Tech Geekk writer
FinTech may have started as a rival to the conventional banking sector, but now it is decidedly an integral part of it, thanks to just how potent it has proven to be. After all, FinTech has ushered in a brand new age of unprecedented levels of customer service, substantially better security of data and transactions, and brand new opportunities for growth and so much more. This has been possible because FinTech has empowered customers via the provision of new-age services, fostered better levels of competition in the market, and democratized access to a whole new set of financial services.

Perhaps one of the biggest and most significant this has had is the positive change it has brought on in the context of customer service as well as security. It has resulted in a robust compliance culture underpinned by a globally accepted set of rules and standards. Furthermore, now that digital services, in general, have raised customers’ expectations, clients’ demands from this sector have increased considerably as well. To tend to these expectations, companies are now deploying strategies and tools across a variety of channels to ensure enhanced levels of customer satisfaction.

Now, to further understand the impact of FinTech on this sector, let us take a look at some of the reasons and prerequisites that drive companies to it.

  1. Growing expectations: As customers continue to demand increasingly fast-paced and modern services, the sector has no choice but to embrace FinTech. Its many provisions, such as algorithmic trading, blockchain, P2P lending, etc. can help deliver exactly what your customers need and want.
  2. Need for innovation: The continued evolution of technology has brought great and significant benefits to the world around us. Given that progress, companies operating in the banking and financial sector too are bound to feel the need to innovate to not only improve levels of service but to also distinguish themselves in the market. Suffice it to say that FinTech is the answer to this particular problem as well.
  3. Demand for better modern services: Over the past decade or two, the banking and finance sector has suffered from the loss of trust from customers owing to a variety of debacles. To bridge this gap and prevent further loss of customer trust, the sector has come to realize that the only feasible way forward is via the integration of modern technologies that can address the problems it faces and make up for the trust deficit.

As you can see, FinTech software solutions stand to have a considerable impact on the banking and financial sector. In fact, according to a recent study, 31 percent of respondents believed that FinTech can benefit financial institutions considerably. That’s not all — 30 percent of the respondents in this study opined that FinTech will, one day, run banks all over the world. Even if you disagree, there is just no denying that financial technologies will continue to be a mainstay in this sector for the foreseeable future.

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About Tech Geekk Advanced   writer

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Joined APSense since, March 9th, 2016, From San Jose, United States.

Created on May 18th 2021 04:39. Viewed 320 times.


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