Traditional banks are slowly starting to crumble under the pressure of the introduction of FinTech, simply because of the reduced cost that can be brought in by automating old processes. In the B2B world, market infrastructure firms are able to offer the brick-and-mortar banks innovative financial technology solutions (eg. NEX Group) that help them reduce costs and resource. The same can be said in the consumer space. It’s no surprise that technology has revolutionised the way that we complete many tasks, such as using blockchain technology to allow us to distribute data in a new way without fear of loss. There are so many organisations on the market eager to help financial start-ups to make the right move with FinTech. But, are customers fully in control of their financial options? Let’s take a look.
More Payment Options For Customers
Visiting the banks for a form of payment can often be tedious and pointless, as numerous requests are often turned down immediately. Usually, when applying for a loan, a traditional bank will shut you down in a matter of moments, disregarding your request and judging you purely on credit rating. FinTech is different though, revolutionising the payment options that are available to the customer. With this technology applied in the financial industry, customers can now pay for products faster with the tap of their phone or card, as well as fund different projects through the phenomenon of crowd-funding. For example, a huge project that may not deem favourable in the bank’s eyes may be adored by the community, and FinTech will allow this community to fund the project without help from the help, giving customers power to make these projects a reality.
Loyalty Is Sacrificed
Customers are very enthusiastic about the movement of FinTech because of the innovation and convenience that it offers them. As these people are so eager to keep on top of the technological trends in this modern era, many are more than willing to sacrifice their ongoing loyalty with a bank in favour of FinTech, so the power really is in the customer’s hands. Not only does FinTech make managing your finances easier for customers, but it also heightens the security over their assets via blockchain technology, and the bank just isn’t providing this kind of immaculate service, allowing customers to potentially shut them down in the future, all thanks to FinTech.
Customers Feel Like Humans
This might seem like a peculiar point, but the truth is that customers feel a lot happier if they’re treated like an individual human being as opposed to customer number 1937. FinTech puts the customer’s best interests at heart, ensuring that they have an extensive range of financial options available to them, allowing them to tailor their financial management to their lifestyles. Therefore, customers are losing that personal connection with standard banks and thus have the power to exterminate them by shifting to the FinTech movement. Statistics show that millennials will make up 75% of the workforce by 2025, and these are the customers who are most impressed with FinTech, so banks that begin building personal relationships with this demographic then will be too late.
Not All Users Have A Digital Footprint
Despite the above points, not every banking customer will have access to such financial technologies. Of course, millennials are very understanding of new technological advances in society, particularly those involving FinTech, but several other people will have limited data connections, or simply won’t use any digital products at all. As a result of this, FinTech won’t be able to reach every traditional banking customer, so customers aren’t completely in control just yet.
The expansion of FinTech within our financial markets is impossible to ignore, and more so for the traditional banks. Whilst there are many different possibilities and opportunities for the customers to take control of the financial sector, there is still a long way to go before they completely shut off the banks for good.