Finance

Will FinTech Bring Revolution in the Financial Services Industry?

Experience is all when it comes to clients. Customers do not distinguish between tiny or bigger organisations, nor do they distinguish between channels, they expect the same kind of experience from a tiny company as they do from a bigger one once they enjoy the greatest amount of fulfillment and the highest quality service. While bigger organisations can afford digital transformation projects with deep pockets, not all companies appreciate such luxury.

For those organisations that are constantly seeking ways to make company dreams a reality, FinTech is a beacon of hope that opens the door to fresh company opportunities and elevates customer experience with high-end alternatives that they could only dream of before.

They say technology is a great leveler and there can’t be a better instance than FinTech because banking services, which was once a banking and financial institution domain, have seen a lot of start-up players competing with big and established banking corporations in this room. But this is not to say that in the digital race the traditional banking organizations are falling back, because they definitely fall back in the race. But banks are slow to change due to their legacy systems and regulatory frameworks and can not leverage evolving technologies as rapidly as businesses in FinTech. Here are some of the ways in which technology makes the financial services sector revolution:

Go where your customers are:

Nobody took this more seriously than FinTech businesses because they knew that the current generation is online all the time, thanks to smartphones that altered their expectations totally. Online, social and mobile technologies have developed fresh possibilities for FinTech businesses to engage more efficiently with their audience and manage interactions digitally, delivering personalized services and appropriate data directly to devices. Traditional banks should catch up quickly when it comes to attracting clients because they expect a lot from consumers and want the same kind of experience they get from Amazon, Facebook etc.

Digital Wallets: Money exchange never got this easier

What’s common among PayPal, Paytm, GooglePay and ApplePay allows you to send any amount with a click of a button to anyone without a bank visit, something that wasn’t feasible a few years ago. Mobile payments or peer-to-peer applications have altered users ‘ way of handling cash today entirely. No wonder most users of smartphones use mobile payment applications on a regular basis because they are easy to use, give comfort, flexibility and much-needed safety. Moreover, these P2P applications have introduced banking services to their customers anytime, anywhere, and in a cost-effective manner.

Reaching unbanked and under banked

Don’t have time to go to the bank or get tired of sitting outside of ATMs in lengthy queues, so you’ve got a great reason to use mobile money applications. But there are many individuals, particularly in rural regions; it is a distant chance to access banks and ATMs. For such mobile money applications provides tremendous possibilities from the convenience of mobile to create cashless transactions and enjoy banking services. FinTech bridges the gap by assisting access to banking facilities to unbanked and under-banked people.

Disrupting traditional lending

The traditional lending method has been described for several centuries by filling out loan applications forms, submitting a range of papers, and there is little possibility of a swift reaction, and there is no probability that you will get a favorable reaction after all this time. And even if all goes well, it is unlikely that you will receive the money anytime earlier.

But all this is a thing of the past, it became simpler and faster thanks to FinTech alternatives that borrow cash. You don’t have to go to the bank anymore, do a lot of paper, and wait days to hear the good news. Borrow cash in hours from the convenience of home without all that stress and worry that used to take weeks or even months. Digital technology is at the core of peer-to-peer lending achievement, which has allowed FinTech players to minimize expenses and provide tailored products and services to satisfy the requirements of particular target organizations. P2P lending is one of those solutions that promises to give borrowers and lenders a lot of advantages.

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