When it comes to customers, the experience is everything. Customers don’t differentiate between small organizations or larger ones, nor differentiate between channels, once they enjoy the best level of satisfaction and best quality service then, they expect the same kind of experience from a small firm as they do a larger one. While larger organizations with deep pockets can afford digital transformation initiatives but not all businesses enjoy such luxury.
For such organizations that are constantly looking for ways to turn business dream into a reality, FinTech is a beacon of hope that opens the door to new business possibilities and elevates customer experience with high end solutions that they could only dream of before.
They say technology is a great leveller and there can’t be a better example than FinTech because banking services what was once a domain of banking and financial institutions have seen many start-up players in this space competing with the large and established banking corporations. But this isn’t to say the traditional banking institutions are falling behind in the digital race, they certainly are in the race. But because of their legacy systems and regulatory frameworks banks are slow to change and can’t leverage emerging technologies as quickly as FinTech companies. Here are some of the ways technology brings revolution in the financial services industry:
Go where your customers are:
No one took this more seriously than FinTech companies because they knew the present day generation is online all the time, thanks to smartphones that have completely changed their expectations. Online, social and mobile technologies have created new opportunities for FinTech companies to engage with their audience and digitally handle interactions more effectively, with personalized services and relevant information delivered directly to devices. Traditional banks should pick up fast when it comes to attracting customers because consumers are expecting a lot, and they want the same kind of experience they are getting from Amazon, Facebook etc.
Digital Wallets: Money exchange never got this easier
What is common among PayPal, Paytm, GooglePay and ApplePay allow you to send any amount to anyone with the click of a button without visiting a bank, something not possible a few years ago. Mobile payments or peer-to-peer apps have completely changed the way users handle money today. No wonder most smartphone users regularly use mobile payments apps because they are simple to use, offer convenience, flexibility and much-needed security. What more, these P2P apps have brought anytime, anywhere banking services to its consumers and in a cost-effective way.
Reaching unbanked and underbanked
Don’t have time to go to the bank or tired of standing in long queues outside ATMs, then you have a good reason to use mobile money apps. But there are many people, especially those in rural areas; access to banks and ATMs is a remote possibility. For such people, mobile banking applications offer tremendous opportunities to make cashless transactions and enjoy banking services from the comfort of being mobile. FinTech is bridging the gap by helping unbanked and under-banked gain access to banking services.
Disrupting traditional lending
For several decades the traditional lending process was characterised by filling up loan applications forms, submitting a variety of documents, and there’s little chance of a swift response, and even after all this time, there’s no likelihood that you will get a positive response. And even if everything goes right, you’re unlikely to receive the funds anytime sooner.
But all this is a thing of past, thanks to FinTech solutions borrowing money got easier and quicker. No more do you have to visit the bank, do a lot of paper, and wait for days to listen to the good news. Borrow money in hours what used to take weeks or even months without all that stress and tension, all from the comfort of home. The digital technology is at the heart of peer-to-peer lending success and that has enabled FinTech players to keep costs to a minimum and offer products and services tailored to meet the needs of specific target groups. P2P lending is one such solution that promises to provide a lot of benefits for both borrowers and lenders.
Financial technology is a new kid in the financial industry block but it has already become changing the face of the financial industry. But as with any technology FinTech is far from perfect and there are several factors like the security that will determine its growth trajectory.