FinTech is a beacon of hope for such organizations that are constantly looking for ways to turn business dreams into reality. It opens the door to new business possibilities and elevates customer experience with high-end solutions that they could only dream of before.
They say technology is a great leveler, and there can't be a better example than FinTech, which has seen many start-up players compete with large and established banking corporations in what was once a domain of banking and financial institutions. However, this is not to say that traditional banking institutions are falling behind in the digital race, because they are not. However, banks are slow to change due to legacy systems and regulatory frameworks and cannot leverage emerging technologies as quickly as FinTech companies. Here are a few examples of how technology is revolutionizing the financial services industry:
Go where your clients are:
Nobody took this more seriously than FinTech companies, who knew that today's generation is always online, thanks to smartphones that have completely changed their expectations. Online, social, and mobile technologies have opened up new avenues for FinTech companies to engage with their audiences and handle interactions more effectively digitally, with personalized services and relevant information delivered directly to devices. When it comes to attracting customers, traditional banks should move quickly because consumers have high expectations and want the same kind of experience they get from Amazon, Facebook, and others.
Money exchange has never been easier than with digital wallets.
What PayPal, Paytm, GooglePay, and ApplePay have in common is that you can send any amount to anyone with the click of a button without visiting a bank, which was not possible a few years ago. Mobile payments and peer-to-peer apps have completely transformed how people handle money today. It's no surprise that most smartphone users use mobile payments apps because they're easy to use, provide convenience, flexibility, and much-needed security. Furthermore, these P2P apps have provided consumers with anytime, anywhere banking services at a low cost.
Reaching out to the unbanked and underbanked
If you don't have time to go to the bank or are tired of waiting in long lines outside ATMs, there's a good reason to use mobile money apps. However, many people, particularly those living in rural areas, lack access to banks and ATMs. For such purposes, mobile money apps provide tremendous opportunities to conduct cashless transactions and access banking services from the convenience of a mobile device. FinTech is helping the unbanked and underbanked gain access to banking services.
Traditional lending is being disrupted.
For several decades, the traditional lending process was characterized by filling out loan application forms and submitting a variety of documents, with little chance of a quick response, and no guarantee of a positive response even after all this time. Even if everything goes as planned, you are unlikely to receive the funds any time soon.
But, thanks to FinTech solutions, borrowing money has become much easier and faster. You no longer need to go to the bank, fill out a lot of paperwork, and wait for days to hear the good news. Borrow money in hours instead of weeks or even months, and do it all from the comfort of your own home. Because digital technology is at the heart of peer-to-peer lending success, FinTech players can keep costs low and offer products and services tailored to specific target groups. P2P lending is one such solution that promises to provide numerous advantages to both borrowers and lenders.
Financial technology is a new kid on the block, but it has already changed the face of the financial industry. However, as with any technology, FinTech is far from perfect, and several factors, such as security, will determine its growth trajectory."""