How Is FinTech Shaping the Future of the Banking & Financial Sector?
Saturday, December 12, 2020, 6:00 AM | Leave Comment
The digital transformation and technological advancements have revolutionized the way services are rendered and customers access the products, eliminating all the challenges and obstacles.
The banking & financial sector is no exception to it and every aspect of financial services has witnessed constant penetration of technology-driven applications.
With continuous and faster interaction between technology and finance, we can see a phenomenon change that accelerates the pace of growth and redefines the future of this sector.
Thanks to IT professional services and the transformation it has brought that the world of finance has moved beyond a brick and mortar bank or firms that are involved in monotonous paperwork and spreadsheets.
The reinvention and innovation collaborated with the current demands to lead the merger of technology and finance, hence giving us – FinTech.
The concept has evolved the traditional service delivery process offered by banks and unions in the industry. The startups and financial innovators are working constantly, sparing no efforts to meet ever-rising market demands.
These fledgling companies are shaping the future of the banking and financial industry via a digital-first approach. This has not only improved communication with customers but has also extended the banking services and improved the lifestyle of millennials.
FinTech- An Overview
Digitization and technology are at a boom right now. Mobile Applications, Virtual Reality, Augmented Reality, Internet of Things, Blockchain, Data Analytics, etc., have changed the global market of banking and finance in every aspect. With the rise of digital investment in custom financial solutions, FinTech is thriving and will continue to flourish in the future as well.
To define in simple terms, FinTech is used to refer to the combination of financial services and digital technology which is particularly used by startups and new businesses to introduce innovative products and services.
Being consumers ourselves, we know that people do not choose services offered in a traditional way, especially when it comes to financial services.
We want a solution that is quick and prompt, thereby addressing our problems instantly without demanding much effort. This is where FinTech comes into the picture hence, gaining significant popularity in a few years. It has replaced the traditional chain with modern and efficient methods.
Thanks to this revolution we have access to mobile banking, online payments, alternative finance, big data, and overall financial management. There are better opportunities for new banking businesses, improved customer services, enhanced security, and several other benefits.
In the next section of this blog, we are going to talk about such changes that we witnessed in the banking & financial industry with the emergence of FinTech.
Let’s have a look:
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Smart Banking Solutions
Banking needs are growing by leaps and bounds but firms and organizations in the sector hardly have enough resources to meet these rising demands. Also, customers have to wait for hours to seek simple service which has forced the banking industry to seek flexible, quick, and robust software enterprise mobility services.
We are all aware of the quality and types of offerings provided by traditional banks. Therefore, banks have started relying on the FinTech revolution to fulfill the focused and urgent needs of clients. It has introduced smart and effective banking services, managing all the departments, and taking over the segments that were earlier neglected by banks.
The best example of this will be online loans. Also, we cannot forget about investments that are beneficial but customers often feel hesitant because of the complicated process. With technology-enabled services, clients can make investment decisions and execute their plans easily and build wealth for a secure future. Using algorithms, it is convenient to find personal preferences and track real-time market changes to build customized portfolios.
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Biometric Technology
Banking frauds are no secret to anyone. There have been many instances of security breaches, information theft, and infringement that compelled banks and firms to give serious thought to their security measures.
Considering the rise of online financial transactions done via apps and websites, it is more important than ever to tighten cybersecurity. Of course, professional and experienced product engineering companies assist banks to develop software to safeguard customers from fraud, vulnerabilities, and risks.
The experts have come up with biometric technology that ensures the future of the finance industry is in safe hands, trusted, and viable.
The concept of biometrics is based on the unique physical traits of users, such as the fingertips or the retina of an eye to confirm the identity of a user. Now, modern and tech-savvy customers prefer biometric data over passwords as the former is more reliable and safe. It also eliminates unauthorized access to personal records, digital wallets, accounts, and details.
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Personalized Customer Experience
The banking and finance industry is more about several client demands and meeting higher customer satisfaction & management. The banks and startups cannot compromise on their customer support services and must be available for them round the clock.
To cater to their needs and offer support, there should be smooth communication and relevant assistance according to their situation and feedback. FinTech adapts to the digital trends and customer expectations, thus empowering them. It connects with users through chats, help centers, and messengers to offer personalized support while also promoting new products and collecting data.
The technology provides 24*7 access to banks and services via digital channels, such as mobile, social media, websites, etc. It is almost like a specialist is sitting right beside the client, helping them throughout.
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Digital Banks
After all the above-mentioned points, this one seems quite obvious. Right? However, it still deserves a quick mention. There were days when customers have to stand in line for hours to make a deposit or withdraw an amount.
Also, they have to spare enough time to visit a branch and adjust their time according to lunch hours and holidays.
Online platforms were introduced as a perfect solution to deal with these issues, providing services to clients anytime, anywhere. Physical branches are no longer essential and banks can pass savings to their customers within seconds and also offer services to the population that is often excluded from the financial system.
Moreover, the industry is also focusing on SaaS (Software-as-a-Service) solutions offered by FinTech providers.
Conclusion
There is no denying the fact that FinTech has paved the way for many opportunities in banking and finance services. From opening new markets to introducing new investors to enabling tech-focused developers and more, the industry has got access to new technologies to meet modern needs.
If you have still not adopted it and transformed your services, then you are surely lagging. Embrace innovation and prepare for the next generation now by switching to FinTech.
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Alicia works with the editorial team of A3logics, a leading android app development company. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.
