How Fintech has changed banking?

How Fintech has changed banking?

Fintech is used to define various tech, that seeks to improve the distribution, and operation of financial services, as it facilitates many financial operations for financial consumers, such as bypassing a bank branch to register for credit, money orders, depositing cash using your smart phone, and the ability to run your money, without the assistance of anybody, so on this page we will discuss, the effects of Fintech on banking industry?

How Fintech has changed banking?

  • Restructuring of customer service
  • Imposing smaller fee policies 
  • Completely digital transformation
  • Helping customers to make decisions

How Fintech has changed banking?

1-Restructuring of customer service

Fintech provides a lot of accessible services via non-traditional channels, such as social media, as it gives opportunity to customers, to contact with customer service, to understand their needs, and separate them from mass social mind, to the specific details of each one of them. Fintech provides a platform for clients to search, and balance between banks offering.

2-Imposing smaller fee policies

Banks need to change some policies, to keep pace with development, as it is illogical for banks, in order to make their international, and domestic payments at the expense of charging customers huge fees, at the same time the customers still have other choices, which they virtually head to use it.

Economists assert, that the income flowing to banks may be affected, due to digital payments, as clients don’t have to pay for something they can have at a lower cost, or for free at another place.

effects of fintech on banking industry

3-Completely digital transformation

One of the clear signs that Fintech is disrupting the bank system is going completely digital, for example some of financial service providers offer banking services fully over mobiles apps, as you have the chance to pay for in-store procures straightly from your smart phone.

4-Helping customers to make decisions

Fintech guarantee convenience, and quicker turnaround times, as it uses machine learning, and artificial intelligence to assist people to take important decisions, when it comes to savings, in addition Fintech gives consumers more than one option, such as choosing financial products like mortgages, and pensions, also they can open a new bank account in less time than traditional banks, which may need more than a week to open fundamental banking accounts.

fintech threats to banks

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