Is FinTech changing the banking game?
The fact that overall public confidence in conventional banking system is shaken is old news already. During the recent years, expectations towards banking have changed significantly and that created a perfect environment for FinTech to enter the market. The influence financial technology has done to the industry is sufficient enough to be called one of the biggest disruptors for the conventional banking.
Even though the conventional banks are trying to catch up and adopt the latest technologies, the customer expectations, speed and convenience required are changing a lot and FinTechs are actually bending the rules of the banking game.
First of all, FinTech provides solutions for banked, underbanked and unbanked. There is still a huge part of population without the ability or knowledge of banking services. In such cases, e-wallets or other FinTech solutions come to the rescue. There are no questions, that the ability to use not only cash but also digital currency is essential these days. It’s not only about convenience, digital financial transactions add great level of security as well. Gone are the days when cash was the go-to way to make a payment. Customers expect much more today – offering a possibility to link a card or account to their mobile devices, paying using app comes as no surprise already.
Customers want more, their behavior and expectations are constantly changing and it is predicted that it will only continue to grow. Clients want easier access, convenience, personalisation, flexibility and transparency. If the predictions are correct and such expectations will only continue to grow, the conventional banking will have to make tremendous changes, or it will be left behind.
Of course, FinTech also has challenges to overcome and place for improvement. Conventional banking is still holding a huge part of global markets and regulatory bodies are often acting in favour of traditional banks. Still having quite a few challenges to overcome from both sides, it might be not a bad idea to follow a collaborative approach instead of trying to compete with each other. It might be not only beneficial for both conventional banking and FinTech, but also to the whole financial market.