The global investment in fintech has increased manifold over the last decade, which clearly goes out to show that fintech in banking services is the next big thing in the financial industry. Up until a few years ago, fintech was considered to be one of the biggest competitors for banking companies. However, over the years, banks have come to terms with the fact that incorporating fintech in banking is the way ahead to thrive in the market. The extent to which fintechs will face opportunities or challenges in the future is unclear. Though financial technology has made leaps and bounds, it is important to note that they are still in the incumbent stage. The upward trend in financial technology is fueled by the need to solve the changing requirements of today’s digital consumer and adapt to the way they prefer to transact. The big question here is how companies in this sector are going to flourish in the future of fintech by meeting the changing customer demands.
Future of fintech
Improving customer experience
The future of fintech will heavily rely on creating exceptional customer experiences. Technology has revamped the way consumer do things and is one of the main reasons why financial institutions are considering implementing fintech in banking. The future of fintech will revolve around offering customers with highly targeted products and services that are designed to fulfill their needs. Modern customers, especially the millennials, are more attracted to such offerings rather than what is available at traditional banking facilities. Though technology plays a major role, customer service will be the foundation underlying the success of fintech in banking services.
Forecasting customer requirements
The application of fintech in banking will require tapping into technological innovations such as blockchain and artificial intelligence. These technologies are useful in unbundling traditional financial services and providing better user experiences. The future of fintech will largely revolve around innovative solutions ranging from payments and lending to robo-advisor services and trade data management. And this ability to collaborate and bridge the gap between the palate of services businesses and consumers’ need is one of the key reasons why fintechs are thriving.
Mergers and acquisitions
Fintechs are still in their incumbent stage. More financial institutions are increasingly considering how the use of fintech in banking through technologies such as blockchain, AI, and mobile payments is viable. Several experts predict that in the future, we can expect to see several mergers and acquisitions in the financial sector to prevent the setup cost incurred for financial technology. Banking companies will not only look at acquiring fintechs, but are also focused on building partnerships with emerging fintechs who will supporting their growth and development.
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