How fintech is reshaping financial services industry?

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New technologies influence all sectors of activity, and finance is no exception to the rule. Over time and developments, more and more companies have embarked on technological innovations for financial and banking services. All are part of what is commonly known as Fintech, which is spreading around the world and redesigning traditional services. Thanks to new devices that affect all strata of the financial sector: customer service, account management, advice, payments and transactions, loans etc.

Impact of fintech over banking industry

  • The omnichannel customer experience:  These days customers more often communicate with companies via digital channels. Interactions have evolved rapidly and banks have to readjust their procedures to digitize them as much as possible in order to simplify the signing of contracts, customer service. In the omnichannel customer experience, exchanges between consumers and entities are carried out via all types of devices such as smartphones, computers or tablets by using social networks, email, chat, SMS, etc. This allows customers to obtain consistent and transparent online interactions regardless of the device used, with different “smart” branches that integrate easily with different digital services. So, Fintech startups can provide financial institutions with software allowing them in particular to adopt multichannel messaging, combined or not with artificial intelligence and machine learning. The objective is to simplify both operations and communication.
  • Chatbots: Without a doubt, chatbots are widely accepted by different financial institutions thanks to their functionality. They provide a platform for fluid communication processes or conversational banking. Since the implementation of chatbots, agents handle different customer concerns efficiently by phone. With modern Chatbot technology, there is a quick response that takes the customer to the right services, which guarantees customer satisfaction. Chatbots are practical FinTech for banking solutions that offer 24-hour assistance. With a hybrid system, even if there is no human contact, customers are guaranteed feedback regarding their financial services needs or concerns.
  • Blockchain and cryptocurrency transactions: Due to the introduction of open innovation solutions, many companies in the industry have adopted a Blockchain and cryptocurrency approach. These are faster, safer and provide more smooth ways to complete different transactions. They provide a platform for transparency, more security and efficiency when transferring money from one person to another. For example, with cryptocurrency, it is not difficult, except that you can access your cryptos due to the need for a private key.
  • B2B solutions: Digital FinTech solutions have provided quality B2B solutions that make it easy for interested parties to discover what is affecting a financial services provider. It is easy to maneuver with fintech solutions considering that many institutions are now using SaaS or Software as a service solution for new Fintech companies to streamline, integrate and execute the provision of quality services. That is why many institutions can easily reach customers and move towards the provision of mobile and digital services. The introduction of application program interfaces helps different parties to use value-added solutions and integrate them with banking services. Reaching commercial customers has becomes easy and hassle free.
  • Use of data: Fintech innovations improve the use of data by financial institutions. Today, many companies have used fintech solutions and have taken over their operations. From the new companies, the speed in the provision of services, the flexibility and the commitment of the client. When it comes to data, fintech solutions never disappoint. Banks and financial lenders accumulate a lot of data over time. 

By using fintech solutions, it becomes easier for them to organize and have a deeper understanding of who their customers are and their needs. Even better fintech banking services and solutions, including the use of artificial intelligence, chatbots and machine-based learning, help customers efficiently manage their needs. With that, the company’s employees are in a better position to focus on other activities and address more complex problems. Fintech creates a digital transformation approach that helps financial institutions meet the complex demands of the modern banking environment.

  • Saves time: Time is essential in any form of business. It is even crucial for a financial institution. FinTech banking services solutions allow banks that have adopted technologies to offer timely services. With machine learning technologies, among others, it is easy for a bank or a financial lender to calculate a customer’s credit score, the interest rate of an applied loan and set a repayment date. This can be done without necessarily involving a loan officer. Fintech peer to peer, AI, machine learning and other technologies improve financial operations by saving time. In the end, customers can easily access the type of services they want without wasting time.

Conclusion

With fintech technologies, banks can also create the best brand image, differentiate themselves from others in the market, create a favorable business environment and stay ahead of the competition with modern technologies. The shape of the industry changes by moving traditional banks beyond their common comfort zone to modern solutions that ensures bright growth. Share Share

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