Fintech is the abbreviation of the Financial Technology that aims to compete with the outrageous financial services with the most innovative ways. This booming industry has taken the finance sector into account to improve it as per the fast-paced technological movement. Fintech application development aims to make the financial services much more feasible and accessible for the common people.
It will assist both well-established financial institutions and startups to adopt new technological innovations for reaching out to the customers easily. Read on this blog to know how banking services are reshaped by it.
Disrupted banking sectors and services
The simplest banking products and procedures like business services, lending and savings render disruption due to the Fintech applications. As per most executives of financial sectors, consumer banking is perceived to get disrupted by Fintech. Due to the disaggregation of the traditional banking components new startups notice the golden opportunity for facilitating targeted solutions enriched with better servicing for both businesses and retain consumers.
Simultaneously, Fintech possesses a threat of disrupting 4 incumbents’ business categories like customer churn, privacy/information security, margins and market share. It will be done so at high rates in contrary to any other finance sectors.
Reinvented consumer service
The traditional financial institutions are still adhered to the outdated customer-centric solutions while compared to the proposal of Fintech. During the survey of Fintech participants only half of the banking sectors are consumer-oriented. Considering the significance of 24/7 accessibility, Fintech app developers facilitate some services over non-traditional channels like social media. This will empower the consumers greatly while enjoying seamless operations and benefits simultaneously.
By the end of 2020, it is expected that social media will act as the key medium for informing, understanding, engaging and connecting customers worldwide. It will reach to every person individually on the basis of comparison of banks’ offerings and customers’ research. In the upcoming 5 years, channel diversification becomes the key of the banking sector:
- Maximum growth in the banking sector will be expected from using of mobile apps rather than other financial institutions
- A fast-paced increase in the user will be expected by utilizing web-based platforms and websites
- Mobile approach is widely preferred by the traditional banks for reaching out their respective customers for increasing customer engagement.
- Most of the financial institutions and banking sectors are preferred to use mobile applications for offering their services and products to a large number of people in remote areas as well.
Before getting introduced in the finance sectors, any startup keeps an eye on the services and products of several leading industries. This will help them to know the sentiment or emotion of the customer which can be taken into account.
Though poorly defined, they focus on the demands of the consumers and by offering highly efficient solutions they can get into the place in this sector. Mainly, it is done so by the neglected segments of the traditional banks on the basis of offerings. Basically, Fintech offers:
- Personal Finance Management Tools
- Ideal solutions for the consumers who aren’t getting loans due to low credit scores
- P2P (peer-to-peer) marketplaces for the customers who can’t secure any loan from the traditional banking sectors
Targeting the business clients
Often B2B solutions lack from traditional financial institutions and antiquated technology which is really cumbersome to manage. That’s why open development solution like Software-as-a-Service (SaaS) is provided by Fintech app development companies for easy integration and streamlining of the operational abilities.
This effort will help in moving forward to the mobile or digital delivery of service. The third parties are allowed for developing value-added features and solutions which can be easily integrated to the banking platforms by the incorporating of APIs (application program interfaces).
Embrace a new way of profitable partnership
A direct collaboration with the help of Fintech ecosystem can be developed within new entrants and banks while competing with each other. It will lead to a huge profit for both of the parties. Spanning of the potential opportunities can be observed in such cases regarding the development and design of the startups and infrastructure and distribution abilities of the banks.
However, certain severe impediments will inhibit the business relations within Fintechs and banks. Considering the bank’s point of view, Fintech lacks from regulatory certainty and enhanced IT security. On the other hand, Fintech considers banks the most difficult one to work cooperatively due to the variation in culture and management along with operational processes.
From the above discussion, it is clear that Fintech has brought the complete revolution in the banking sectors. There are numerous companies to contact for the Fintech solution yet Induji Tech is the leading name in this prospect! It offers fully customized solution as per the clients’ need while it is about serving people with feasible and accessible financial services.