It’s not easy to understand Fintech as it includes a wide range of tools. Many platforms and services also promote it. But, if you’re still unclear about what it is and its role in banks, keep reading to know more.
What is exactly fintech?
Fintech means the technology used to fulfill various financial demands. It is a science that helps a country grow with present needs. The growth is more modern than the old way of going to the bank for any financial services.
In this way, it serves people’s lives in a better way. It needs no visiting a bank. Additionally, it completes time-taking payments in few seconds. It does so by making cash exchange more cashless.
Also, Fintech showed that there is much lesser use of demand drafts and cheques. So, for its ease, people also prefer banking digitally more. This technology is, thus, more open and makes managing bank accounts a lot easier. So, Fintech makes the traditional way of going to the bank the last choice.
For example–
Post covid, mobile payments have changed a lot. Everyone started using it a lot. Limited time and limited access made it needed. Thus, Fintechs have helped a lot in doing that. Mainly they have changed and improved our old banking system. Thus, helping in quicker money transactions now.
Many users have loved the second’s money transactions system. Thus, making banking and FinTech the most easier. In one click, the money is sent or received via it. And all transactions are done now without any need to run banks. Without any third person, involvement transactions happen. It’s all because of Fintechs.
In what ways are fintechs changing the financial services industry?
Banks are slow to change facts or conditions. But post covid, many have upgraded themselves a lot. They now provide a more customer-centric banking service. To have more customers in their banks, banks are upgrading their services. They use much more up-to-date technologies. Or else they will lose their customers due to old school methods.
FinTech businesses are this way, developing digital solutions. Hence, trying to change each part of old banking. Not doing so puts them at risk of losing clients against other banks who provide better technology.
The banks have this way become much brighter and smarter than ever before. They use much improved services by using the latest and best technologies. In the end, users have a more advanced digital banking experience. And also feel safer about their data.
Primary activities and changes include :
- One can check the account’s balance online now.
- Keeping a check on everyday transactions.
- It helps hold a digital Demat account. It is an account that has the shares and securities in digital or electronic form.
- Making service requests such as ordering a cheque book. Changing the writing address from comfort of home.
Post pandemic fintech’s most recent advances
In addition to making banking more readily available and quick, technological progress have many impacts too.
Crowdfunding Platforms launched by FinTech improve consumer relationships directly. Small companies, entrepreneurs, charities, and artists may enjoy it since it eliminates the need to raise money through old means going door to door.
THE BOTTOM LINE?
Clearly, Fintech seems to be an essential factor in the success of the global economy. So, it’s true that this field is vast and will be expanding quickly, and it looks like it’s here to stay longer than ever. Thus, the banks need to embrace Fintechs as part of their progress plan to keep up with this.
