Fintech is viewed as a new competitor in the market. Collaboration of banking industry with Fintech will only help to increase new businesses, improve the experience of customers and generate revenues.
A lot of people have concluded Fintech to be a revolution declining the old school financial strategies. With other terms such as Artificial intelligence and mobile banking, it is certainly very much related.
This new revolution is more of an opportunity for improving financial strategies in the market. Smaller institutions can adopt this new technology wave much more easily since it takes them less time to adapt to the change
Is Fintech The Enemy or A Friend?
Many consider Fintech to be the enemy of the usual services. But if they work hand in hand with it, it can act as a friend and promising tech partners. Banking industry and credit unions can help to create a great banking experience for the clients.
The Digital Transformation Era
We can already see how the latest upgrades are excelling at replacing older ones. Radio’s arrival meant that newspaper will not be used anymore. Similarly, arrival of Television did the same for the Radio. This technology has not died out, just transformed into a latest upgrade. Similarly, combination of banking and Fintech is the same. People use the old technology in a new way.
Benefits of Fintech For Banking Industry
There are many benefits Fintech can give financial companies. If the variety of products, knowledge and strength of the two is combined, it can help to improve customer’s experiences and creates a great environment both for the bank and Fintech users. There are 5 ways the merger can benefit each other in the future:
- Fintech helps to make the health better of financial institutes by promoting a better profit generation and performance. With credit unions and banks being Fintech firms going hand in hand, opportunity will be great for both
- Fintech will help to make customer stick around more and improve their preferences as well
- Fintech helps to give customers the solutions when and where they require, in the exact forms
- Partnerships with Fintech will help to resolute any specific areas of problems, like money transactions, using credit cards and generation loans quickly. This also promotes resolving complicated tasks in smaller amount of time and more efficiently
- Data from Fintech will give an idea to institutions about how customers are using their resources. It will help to promote usage of products and solutions in the real time.
Finding the right proportions of solutions with banking can help to strengthen customer relationship while also opening up to new ideas.