The FinTech industry has completely changed the world of traditional banking. Not only has it flourished, but it has helped the banking industry to improve itself all over again. FinTech has been growing at an alarming rate and at this point, the future looks really bright. They came in to fill a void left by the traditional banks in terms of customer service. Banks used to focus more on their products rather than their customers. The customer experience when it came to banks were bland and extremely generalized. The FinTech firms managed to change that. They realized that every customer had their own unique set of needs that the bank kept overlooking. So, armed with the right technology they started catering to everyone and fulfilled their requests. Moreover, they offered lower interest rates on loans, loan approvals even for people with lower credit scores and relaxed regulations for most.
These were some of the things that made FinTech what it is today. It understood that listening to the customer was important. But, what was more important was the use of tech to help customers have a better experience. There was a time in the last decade when banks suddenly woke up to a new competitor on the horizon: FinTech. These were companies were offering better terms and far better service than they ever did.
The only reason why banks survived this was that people trusted them. They had a brand value that went back a long time. But, at the same time, their customers realized that they could have had better service if the banks gave a thought about them. Even though the banks had more money than FinTech firms, they did not invest it in tech nor did they use it to create a better experience for their customers.
FinTech offers people a customized and highly personalized journey. People can track payments, get access to personalized financial predictions, set up goals and see if they are reaching them on time and do so much more. This has helped FinTech engage more people and make themselves more appealable.
FinTech has helped make things simpler. It has streamlined complex financial processes, making it more accessible to people. It has made traditional banking services like lending, money transfer, etc. even simpler and hassle-free. For example, it has become much easier to open a bank account if you opt for a FinTech firm rather than a traditional bank. It takes just a few minutes to open an account nowadays.
The same goes for loans. If you apply for a loan at a traditional bank, it will take you weeks to get it approved. Worse still, after waiting for weeks you will get to know that your loan has been rejected. But, if you apply for a loan with a FinTech company, the entire process is paperless and electronic. It takes a few hours to verify and process everything. You get your loan approval on the same day! So, no more waiting time. What’s more interesting is if you have a low credit score, you have a better chance of getting a loan at a FinTech company than at a bank.
FinTech companies rely heavily on techs like automation, artificial intelligence, and machine learning. Since most of their processes are automated in nature, everything moves at a faster rate. Hence, they can provide such quick service at a short notice. This is something that banks are unable to do because they rely on legacy systems and paperwork. Moreover, relying on tech like these leads to lesser mistakes and ensures the quality of service is maintained all the time.
Millennials are the new kids on the block. In today’s market, the number of millennials is slowly increasing and as days go by this will keep on increasing. This generation wants faster and smoother service. Now, that is something that the traditional banks cannot provide. Hence, they are turning to FinTech companies and their blazing fast speed.
FinTech companies too have realized that this generation requires a more customer-oriented service and they are more than willing to provide that. In the long run, the more millennials FinTech can attract the better it is for their business. However, the banks have caught on to that. They know that FinTech is now controlling and shaping the landscape of finance. So, a lot of the big players in the traditional banking industry have tied up with FinTech companies to improve their services. This complementary arrangement allows the banks to put the tech to good use while FinTech companies can now have access to their large customer base.
It’s a win-win for both and it also means that every customer is benefiting from this. Right now the future of FinTech is a game of wait and watch. But at this moment, from the point of view of consumers, it feels great to stand on the brink of a financial revolution.