3 Ways Fintech is Changing Banking
In this article, we’ll review what Fintech is and how it’s changed the world of banking in the past few years.
What is Fintech?
Fintech’s name is a mashup of the words; financial services, and digital technology. Fintech is made up of several consumer-based application elements like the ability to manage funds online, view financial analytics at a glance, trade stock, crypto, and pay for insurance.
Fintech is often seen today as the new marriage of financial services and information technology. However, this interlinkage has a long history and has evolved over three distinct time periods. In the late 19th century finance and technology combined to produce the first period of financial globalization. First introduced as a technology, it was used in the back-end systems of financial institutions and banks. Since then, it has changed immensely. As of now, Fintech is made up of several consumer-based applications.
By 2019, Fintech allows its users to trade stocks, manage funds, pay for insurance, and other many other expenses. In the modern digital era, the traditional services offered by financial institutions are not up to date with the technological advancements in the world of finances and crypto markets. Users now commonly prefer services that are easy to use, safe, and can be backed by the institution. Fintech’s immense impact on its users is that it is based on digital technologies relevant to the era, disrupting traditional banking and financial services.
Open a Bank Account, Without an In-Person Visit
Fintech is changing the world of finance for consumers in a myriad of ways. For example, you can now open a bank account over the internet, without physically visiting a bank. You can link the account to your smartphone and use it to monitor your transactions. Fintech does not rely on in-person visits such as that of brick-and-mortar traditional banks, this makes its services more desirable to users who cannot or do not desire to handle banking functions at physical locations. The convenience of this type of banking is additionally desirable to consumers in the 21st century.
Here are some benefits of online banking:
Use your smartphone to access mobile applications offered by FinTech banking services. Mobile applications provide quick access to funds and users can perform several banking functions such as bill paying, checking deposits, account balances, statements, etc.
Omni-Channel & Branchless Banking
FinTech financial services transform the entire banking system, reducing banks’ necessities in their brick-and-mortar locations by providing various technological channels such as online, social, and mobile platforms.
E-wallets, found on smartphones, are a new collaborative measure that embraces technological advancements. They are also a tech-savvy advancement to your traditional wallet.
A More Convenient Way for Your Cashflow
Online and real-time payments have revolutionized how people manage their account balances and cash flow. In today’s world of automation, consumers are now seeking ease of use and convenience in everything they do—from online shopping to banking services. The management of your bank accounts from a smartphone or computer provides constant access and puts management of your cash flow straight into the hands of its users.
Here are some aspects of technology Fintech that make your cashflow more convenient:
Using Smart Chip Technology
Say goodbye to pins. Smart chip ATM cards significantly minimize financial losses. With EMV technology that is embedded in each chip, this technology uses a one-time password for transactions or purchases, increasing the security as the code is valid only per each transaction.
Using Biometric Sensors
Biometric technology relieves panic that occurs from atm card loss or theft.
Offering Online Transactions
Electronic payments such as bill payments or mortgages can be done without in-person hassles.
Providing Customer Service Chatbots
Fintech providers offer customer service through chatbots. Chatbots are software that uses machine learning and natural language processing to learn from human interaction, working to better serve its users through streamlining queries and assistance.
Utilizing Artificial intelligence
(AI) Machine learning algorithms allow banks to use past data to predict and determine patterns of fraud or attacks by hackers, reducing manual effort by an approximation of 50%.
Banking: Unapproachable to Friendly
With Fintech, onsumer relationships with banks have changed from being distant and foreboding, to a more approachable and easy going manner. Due to the advances of technology, software such as graphic designs and user interface, good UI is changing consumers relationships with banking. Financial websites can be plain, boring, but also intimidating to users. Companies such as Penji, offer marketing services as well as graphic design services, to help your fintech company standout. Planning the web design of your company, can help to make your customers feel more relaxed and understand your site better when interacting with it.
Bad design, in the form of, unavigable pages, links that dont work, and a horrid color scheme, can make your site unnatractive to your consumers. It is important to draw more customers to your site, rather than to repel them. Great design can add desirability to your site and put your customers at ease. Graphic design companies can help to deliver better user experience and visual aesthetics that serve a purpose of providing better UI better service to users.
View Your Statements and Cashflow at a Glance
How Fintech is changing the banking industry? The rise of financial technology is double-edged for the banking sector – on the one hand, it is providing ways to enhance the services they provide to their customers, with banking institutions using tools like chatbots to enhance customer experience, and mobile apps to give customers a real-time view of their bank. These technological services and more, make banking easier, for users and institutions, providing an overall increase in ease of technology as well as applicability.
Consumer demand for safety and user-friendly experiences is what encourages banks to adopt Fintech’s financial technologies. This company is becoming bigger with the advancement of the modern technological era. Fintech’s new upcoming endeavors include, retail banking software, financial core banking software, and other exciting components.