Financial Technologies (FinTech) is creating a sweeping change in the banking and finance sectors around the world. Most customers see the result of this work as a new app for their smartphone, a redesigned website, or more customization with their interactions with a preferred institution.
What does not get seen are the various changes that happen behind the scenes to make these better processes happen. Jean Chalopin an entrepreneur said, “FinTech uses these options to ensure that customers receive a quality interaction while the institutions in banking and finance can save money and improve response times.”
1. Data Becomes Usable
Every transaction and interaction that banks and financial institutions have with a customer generates data. Before the emphasis on FinTech, this information was stored somewhere and rarely used. Now it becomes a connection that allows almost every aspect of the customer experience to become accessible simultaneously. A single inquiry can generate a substantial amount of input and output that can streamline services.
2. Application Speed
Applications for new lending products can happen in seconds because of the efforts made by the FinTech sector. If you wanted a credit card, car loan, or a mortgage in the 1990s, then you had to file a paper application and wait for weeks sometimes to get a decision. Because of the data stored locally, in data centers, and cloud-based applications, complex financial decisions can happen instantly.
3. Mobile Payments
Cash payments are still prevalent in the world of banking and finance, but it is also worth noting that mobile payments are quickly rising in number. Debit and credit cards are increasingly common. You can even pay for items using a wallet on your smartphone or linked to a fitness tracker today. As FinTech continues to evolve the transaction process, it will create more seamless ways for an exchange of assets.
4. Mobile Banking
If you wanted to apply for a loan or deposit a paycheck in your account in the past, then you had to visit your local branch. Now that we live in a world where almost anything information-based can happen instantly over the Internet, banking and financial processes must evolve. Numerous tasks can now be completed online, including account transfers, automatic payments, and even borrowing options.
5. Advice Automation
Lower interest rates have eroded the cash returns for many around the world, reducing income levels for many in the banking and finance sectors. Artificial intelligence and deep learning algorithms make it possible for FinTech to create automated advisors that can provide portfolio management services with little if any, human intervention. By examining the data that each customer providers, it is faster and cheaper to create customized solutions today – even when someone’s financial situation may be legally complicated.
Although the above options are evidence of how FinTech is shifting the landscape of banking and finance, it is also changing how customers interact with their preferred institutions. Every decision in this industry has already been made because of the available data for each customer. That means the consumer is left with a single choice: whether or not to complete an application.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.
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