“It is not the strongest of the species that survives; nor the most intelligent. It is the one that is most adaptable to change.”
These words of Charles Darwin regarding evolution holds so true for the current financial industry as well. Structural trends are reshaping the industry and at the core of it is the new breed of customers.
They are demanding secure, fast and easily accessible transactions, and thanks to the Fintech disruptions in the financial industry, all this has been made possible. Mobility has further elevated customer’s expectations and with new applications, financial services have shifted and revolutionized the way the entire financial industry does business.
Fintech has brought effectiveness and efficiency in the system changed the customer experience and has disrupted the way the industry operates today. Although still young, it has already made a major impact on the financial sector.
By bringing scalability, flexibility and growth in the financial services, Fintech has rendered a more cost-effective method of payments to the customers. Increase in adoption of mobile wallets has reduced handling and usage of physical cards and has aptly addressed the big challenge of scalability.
Disruptions driven by the advancement of technology, artificial intelligence and machine learning have solved several challenges of the industry as well. Fintech is using technology to solve challenges in risk management. It has evolved from Risk Analytics to Risk Modelling where historical data is used to play out the likely future scenarios which then become the baseline for strategic decisions.
Use of e-mails and mobile data powered by AI helps to get insights into consumption patterns, payments, etc. aiding evaluation of credit score.
A very big challenge, especially in the insurance industry, has been underwriting. Fintech has brought about risk-free underwriting for financial services organizations. It is also addressing other challenges like on-spot purchasing, activation and claims-processing.
Today banking and investing have become smart banking and investing.
It is about the seamless, secure and convenient banking experience, which is acting as a differentiator.
Fintech in banking has completely changed the way people bank. Today individuals are using online trading apps to invest in the market, share knowledge and monitor real-time risks. There are mobile apps allowing individuals to invest in public companies and exchange-traded funds listed on stock exchanges without paying a commission.
This has disrupted the existing brokerage businesses and has helped in acquiring many more customers who find it much easier to trade this way.
It is thus evident that companies across industries are embracing new-age technologies to stay relevant, connected and cost-effective in a competitive and globalized world.
Adoption of technological interventions has started leading to disruptive changes and has led to an improvement in avenues of customer acquisition, improved Insights, better decision making, elimination of points of failure through automation, and better customer engagement.
The dynamics of Fintech is changing with each change better than the other.
Adaptability to the changes will ensure that new possibilities are created to add value to what the financial services industry is set to offer to its customers.
