Fintech or financial technology refers to the use of technology to improve financial services stated by Bahaa Abdul Hussein. The advent of Fintech has led to a revolution in the finance sector, including banks. Today banks are more customer-friendly and offer a range of products and services, thanks to Fintech. We look at the role of Fintech in modern banking.
Fintech is the use of technology by banks in its operations. When you transfer money to someone online, you are using Fintech. If you handle your investments online, then you are using Fintech. A study showed that nearly two-thirds of bank customers some Fintech services today. This fact highlights the importance of Fintech.
Let’s now look at the applications of Fintech. End consumers or retail consumers of banks can benefit from Fintech and use apps to avail bank services digitally. B2B services are offered where banks offer their services to other businesses. B2C services allows banks to reach out to small businesses to offer services.
Benefits of Fintech for banks
Fintech offers benefits both for banks and its customers. The benefits listed below will help you understand why banks are increasingly adopting Fintech.
- Fintech allows banks to offer more financial services to customers. It can offer these services in a convenient way leading to a win-win situation for both banks and customers.
- Fintech helps in ensuring financial inclusion since banks can reach out to customers located in geographically far off locations. It allows more people to access banking service.
- Banks can offer an enhanced customer experience thereby increasing customer satisfaction. This can help in improving the bank’s profitability.
- Fintech comes with security measures that are constantly being upgraded. It ensures that the customer’s money and information is saved. With technology comes the risk of cyber threats. Fintech ensures highest security levels to prevent cyber attacks.
- Customers can get personalized service that they normally don’t get in banks. Fintech allows banks to get a detailed customer profile using which personalized products and services can be offered.
- Fintech ensures convenience for customers who can get their banking available 24/7 through an app on their mobile wherever they are. Digital banking is popular and preferred by customers.
- The use of Fintech helps banks cut down costs by streamlining their processes. In the process, they become more efficient. It allows them to offer better prices for customers.
- Investments become easier and can be done through apps. Robo-Advisors can help customers make investment decisions easily.
Thank you for your interest in Bahaa Abdul Hussein Blogs. For more information, please visit www.bahaaabdulhussein.com
