Lessons conventional banks should learn from FinTechs
The growing popularity of fintech companies highlights the fact that in some cases traditional banking can’t understand the significance of such companies, let alone compete with them. On other hand, if we talk about the scale only, fintechs, in terms of the amount of customers, are nowhere where conventional banks are. Seen in the context of size, the question of competition between fintechs and banks sounds quite absurd.
However, this absolutely doesn’t mean that big banks should ignore fintechs. Neglecting such change hoping that the scale will continue to matter isn’t the best decision. Banks are well aware that the phenomenon of fintechs is a result of banks shortcomings. Fintechs are seeking to fill in all the possible gaps in consumer – bank relationship, using an “out of the box” approach. Most of the banks struggle to think and operate in this way. All the processes have been done in a same or similar way for so long that it makes it difficult to even try to imagine them in any other way.
Another extremely important part is the fact that fintechs attract younger people. This is valid for both employees and customers. Fintechs are getting well adapted to the needs of generation that is or soon will be calling the shots. Such customers are looking for ways to effortlessly meet their specific banking needs or have services beyond traditional operations. They want simplified processes and added value. Further, nowadays client wants banking that “feels” different in some way.
If banks want to complete for such type of customers, they must get curious about the needs and wishes they have. The convenience offered by fintechs is disrupting the way we, as customers, behave. And such allegedly small matter is changing the architecture of the whole market, pushing it to adapt to the new needs.