Many were first exposed to the concept of fintech But what exactly is fintech and what is the impact of the new technology on the future of banking?
Fintech is a combination of two words – “finance” and “technology”. FinTech companies are companies that have developed technologies designed to enable us to consume advanced financial services.
These companies bring about significant changes and improvements in financial services by technology in order to change their consumption habits.
Does FinTech companies competing for the banks or completing it?
The technological changes have also led to a change in customer requirements, which require customized, faster, and more efficient services. As technology advances so does the expected standard of service.
The fintech companies are responsible for technological developments that make it possible to offer the customer added value and products that in some cases compete with those offered by the traditional financial institutions, and in many cases complement them.
Thus, for example, Pioneer, which we mentioned earlier, created a revolution in the field of money transfers abroad.
Fintech companies are successful because they make it possible to improve existing processes, reduce costs or create a completely new experience for the customer – usually with the help of new technology.
The combination of Fintech, online banking, and open banking, will change the way we perceive banking.
What is supposed to give fintech companies a boost is the open banking regulation, which is starting to enter gradually this year.
Through it, fintech companies will be able to access the customer’s data and offer him more relevant financial services – with his consent, of course.
In this way, the traditional financial institutions will also be able to connect to the various fintech and offer new services to their customers in cooperation with the same companies.
FinTech is a powerful engine that is changing the way we consume our financial products and manage our money. With the help of new technologies, open banking, and fintech companies, the hope arises that customers will be provided with better products and services, which will be able to create a new customer experience, and above all: save and take care of its future.