It is a known fact that the traditional finance and banking industry does not adopt technology at a faster pace. This is the sole reason why Fintech industry is disrupting it in such a great way. Moreover, the Fintech industry is attracting a significant amount of investments as well. The total investment which flowed into Fintech industry is around $ 31 billion. This is just the figure last year according to KPMG.
This clearly indicates that Fintech start-ups are doing something right. The technology which is being utilized by the Fintech start-ups is not getting replicated by most of the banks. This is the problem which is being faced by banks. This, however, does not mean that Fintech industry is not making any mistake. Many Fintech start-ups need to learn a few things from the banks if they want to survive in the longer term. We will share with you some of the things which the Fintech start-ups need to learn from banks.
Being proactive when dealing with regulations:
Finance and banking industry in any country is actually regulated with a stern hand. However, the Fintech industry is not being proactive when handling these regulators. The truth is that they need to be proactive like banks if they want to consistently grow their business.
Taking a holistic approach:
Fintech industry is taking a niche approach. This will hurt them as a risk in niche approach is always on the lower side as compared to the holistic risk. That is why, if they want to consistently expand their business, they need to take a holistic approach.
Even though the products of the Fintech industry are revolutionary but if they really want to gain customers, they need to ensure that they are partnering with various different platforms. Only once they are able to partner with various platforms, they will be able to gain customers more easily. That is why they need to have an open mind and they need to partner with various businesses as well as avenues in order to gain new customers easily.
Only when the Fintech industry is able to adopt these few tips, they will be able to consistently expand and will be able to survive in the longer term. Till then, they will face inherent risks which can disrupt their own business in the longer term. This is the reason why they need to learn a few of these things from the banks themselves.