How is FinTech dominating the Banking Systems?

How is FinTech dominating the Banking Systems
How is FinTech dominating the Banking Systems

The fintech revolution has transformed the world’s financial systems in the post-pandemic scenario. The technological intervention in the finance industry has impacted banks and financial institutions globally.

Initially, Fintech was utilized by traditional banks and finance companies to manage their back-end systems. As the technology evolved, it became more consumer-oriented. The Fintech industry played a significant role in the development of startup companies offering various banking services to customers. It has become easier than ever to manage your finances on the go, avail various banking services and operate transactions.

It is therefore understood why Fintech is considered to be a potential threat to the traditional banking system. The Fintech industry has impacted not just the banks but also other applications providing financial services to the customers. Fintech has changed the way mobile payment apps, investment firms, and insurance companies operate their financial database.

The Fintech industry’s popularity is due to the demand of customers to get access to their bank accounts without actually going there. In these post-pandemic times, customers prefer financial services that are safe and hassle-free.           

What Statistics say about Fintech

  • The Statista Research Department researched Global Consumer Fintech Adoption rates 2015-2019. By 2019, around 75% of customers had globally adopted some form of online payment service.
  • Another study from November 2021, suggests that there were 10,755 Fintech startups in America, followed by the EMEA region with 9,323 Fintech startups and 6,268 Fintech companies in the Asia Pacific region. 
  • There was a dramatic increase in the value of investments made into Fintech companies worldwide between 2010 and 2019. The investment value however fell in the year 2020 but saw a rise once again in 2021 reaching a value of 210.1 billion U.S dollars.
  • Current statistics show that there is approximately 1.7 billion of the world’s population use Fintech to manage their finances without the use of a bank account.

Fintech has turned out to be a cutting-edge innovation that has made financing easier for customers and banks at the same time.

Fintech and Changes in Banking Systems

The changes inculcated by the banks to provide better customer services are possible due to the adoption of Fintech. The provision of online banking, E-wallets, Cashless transactions, online customer care services, application of biometric sensors, and ATM cards has made branchless banking possible.

Introducing Fintech into Bank operations has changed the entire financial procedures carried out. Earlier, it was necessary to visit your nearest bank branch to avail of various financial services.

With the advent of Fintech, financial services are easily available on digital platforms. The constant demand for safe and consumer-friendly financial services has led to the growth of financial technology. As a result, Fintech companies are attracting more and more banks to readily adopt this technology.   

The increasing impact of Fintech on core banking operations can be witnessed presently. The future of Fintech is also bright for the retail banking industry as it is taking over the whole world. Join the FiNext Awards & Conference to have a deeper insight into the rapidly growing Fintech industry, to network with these banks who are adopting to ever-evolving tech along with the tech companies who are handholding these banks into the future.