Financial technology in the banking and financial sector often offer their services in the form of products, applications, business processes and business models. The main target areas in this sector are a consumer and commercial loans and repayments.
Now it is important to understand how the traditional banking system has been disrupted and ushered in a new era of alternative finance.
Traditional banks had a number of problems that led to the financial technology revolution, some of which are listed below:
The partnership of fintech with banks could lead to great results, some of which I will list down below; however, read this post https://geniusee.com/single-blog/fintechs-impact-on-the-future-of-banking-and-financial-services to understand how fintech can impact banking and financial services in detail.
Safe and secure transactions
Banks have the required financial information of customers in their database. They can partner with fintech companies to use their advanced technology and continue to act as authenticators of transactions to ensure security in all transactions.
Joint Investment
Partnerships between banks and fintech can open the door to joint ventures in technology, innovation, and various programs that target different banking sectors for mutual development.
Wide range of products and services
In partnership with fintech, banks can seek to provide a wide range of products and services to their clients. This will attract new customers and allow banks to face stiff competition in the market.
Venture into alternative business
Banks that collaborate with fintech will strengthen the confidence of entrepreneurs working in a variety of businesses and will come together under one umbrella to reap the benefits of a collaborative business. Consumers will pay less than before due to reduced trade channels and related costs.
Easy Transactions
Bank customers will benefit from transacting using the latest technology and will save time, effort, and money on transactions. Banks and fintech companies will also benefit from lower operating costs and higher transaction volumes.
Discounts and Offers
Due to low operating costs and high transaction volume, banks in partnership with fintech will be in a position to offer their customers a variety of offers that can attract new customers and maintain an existing customer base.
Rate of return
This type of cooperation will be beneficial to the banks and fintech, and the rate of return on investment will be high, in the long term, given the high volume and low operating costs.
Acceptance of change
The partnership between banks and fintech means accepting constant changes in the financial markets in terms of investment, products, services, competition, technology, etc. Implementing such changes at regular intervals will meet consumer expectations.
