How is FinTech Reshaping Traditional Banking Systems?

Fintech 17-Feb, 2023

 

 

By constantly introducing innovative methods to interact with existing and potential new customers, the FinTech industry is reshaping the financial sector's future. This shift is forcing traditional banking systems to move beyond just brick-and-mortar platforms.

As a result of a digital-first approach, FinTech is now extending banking services such as investment advice, etc to all which were earlier restricted to just the wealthy. This has allowed an upgrade in lifestyle for most millennials today. However, there is more to how FinTech is enforcing traditional banking systems to change the way they operate.

Increasing Customer Satisfaction

In FinTech, customer satisfaction and managing the banking business are equally important. The convergence of digital trends and customer expectations has empowered the customer digitally. The ever-increasing demands of customers with flexible time limits are driving the banking sector to look for immediate, sturdy, and adaptable solutions.

Smart Solutions

FinTech is targeting those customer-centric segments that have often been neglected by traditional banks with smart, highly effective and robust solutions:

  • Loans for customers with no or poor credit scores
  • Peer-to-peer (P2P) lending platforms for people who cannot secure traditional loans
  • Solutions for managing personal finances

 

Facilitating 24x7 Customer Service

Giving the customer the freedom to access banking services 24x7 is one of the key features by which FinTech is changing the methods of interaction with the customer. 24x7 Access to online banking facilities has further allowed the customer to compare and choose the offerings by other service providers.

Transforming Financial Transactions

Convenience and ease of use are two aspects that the customer takes into account while choosing a service. FinTech has revolutionised the way people transact today. With mobile banking and digital payment systems, customers do not have to go to a bank branch to initiate or collect payments. Transactional services have developed to a point where there is no need for an individual to have a credit or debit card with them physically to make a transaction. This has further reduced the usage of cash. While the consumers benefit from an easier and faster payment process, the banks benefit from data collection. Thereby, helping in developing customised offerings.

Enhanced Security

Though online banking is transforming the way customers engage in banking services, it also raises security concerns from the critics. However, FinTech is focused on making it highly safe by developing a multi-layered security shield to protect the financial data of the customers. From using artificial intelligence (AI) for fraud detection to enabling highly advanced blockchain mechanisms, FinTech is assuring a concern-free digital banking experience for customers.

Adding Value To The Services

FinTechs are developing features and solutions that are directly targeting the demands of the customers and further, can be easily incorporated with banking platforms through application program interfaces (APIs). Therefore, banks can make efforts to integrate and streamline their operational capabilities through the application of FinTech.

Facilitating B2B Partnerships

FinTech has eliminated global barriers and hence, increased the competition among financial service providers. With that, it has also given rise to direct partnerships across the banking ecosystem. By developing efficient B2B solutions, FinTech has made it possible for businesses to find out the concerns impacting the financial services provider. With the aim to automate and streamline their operational processes, banks are using FinTech solutions such as SaaS (Software-as-a-Service) and APIs. Hence, paving the way for digital/mobile delivery.

FinTech has been driving economic growth globally. It is the need of the hour for traditional banking systems to incorporate digital trends to keep up with the expectations and demands of the customers. By leveraging innovative FinTech solutions, banks can find the perfect balance between partnerships and ever-changing user needs.

The current digital age is pushing financial institutions to adopt FinTech to keep up with the needs of the customers. However, in this highly competitive space, most are falling short of adding value to their offerings. In order to serve the consumer effectively and bring value to them, an organisation must focus on integrating effective and advanced digital solutions into their operations. We, at Coreium, strive to develop and provide FinTech solutions that can effectively bridge the gap between service offerings and customer needs for financial service providers. Email info@coreium.io or call +60 166173975 today to get consulted by our experts on innovative FinTech solutions and customised services.

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