The revolution of financial technology is rapidly spreading around the world and affecting a multitude of processes in the sector. These include financial advice, payments, customer services, insurance services, and account management.
We are going through one of the most important transformations in financial history – The FinTech Revolution. Let’s talk more about what FinTech is and how it has reshaped the banking industry as we know it.
What exactly is Fintech?
Fintech is more than a mere reference to financial technology. It makes use of innovative technology to vastly improve traditional financial methods and put forward effective solutions for financial services keeping at par with the latest technological trends. It is transforming the finance landscape through a vast array of uses and technologies – from block chain & artificial intelligence to mechanized advisors & digital payments.
Fintech has not rendered traditional financial firms obsolete but it is revolutionizing the global landscape of finance to a great extent and making banks re-think the way they interact with their customers.
Here are a few ways in which we can see Fintech reshaping the banking industry:
From a customer standpoint, online banking solutions offer 24×7 accessibility. They also minimize the hurdle of human ‘middle-man’ intervention, consequently leading to an accelerated transaction process from the ground-up. With the entry of FinTech companies, loans and related services can be easily availed by customers. It is possible to apply for a loan with a mere touch on the screen and filling up a quick form, reducing the hassle of going physically to the banks and following endless procedures. At Clix Capital, we are devoted to improving customer service, ensuring the speedy approval of loans, and augmenting the overall customer experience.
From the perspective of the provider, these services and products improve customer engagement and retention, bringing them up to a great level. This helps facilitate a win-win situation for both parties.
Enabling the creation of products tailored to customer’s needs
It’s true that most insurance companies know a lot about their customers. However, when it comes to finding ways to monetize the customer data, FinTech has a substantial edge. By using data models and sophisticated analytics, they are able to better identify and mitigate risk, which ultimately leads to a broader customer base and maximized profits.
Moreover, FinTech is also helping end-users. Today’s consumers are tech savvy and they demand insurance products with features tailored to their requirements such as location, age, timeframe, lifestyle, and uses. Consumers are now able to compare insurance solutions from various providers and choose what works best for them. Hence, a one-size-fits-all policy is no longer relevant.
Customer Service Chatbots
Chatbots are growing increasingly common because of their speedy response in support delivery to address simple queries, automate data collection, and point customers in the right direction. Agents greatly benefit from the implementation of these virtual assistants, as they can spend much less time on the phone handling basic queries and focus more on other important tasks.
From the perspective of the customer, chatbots are handy pieces of software that can provide assistance 24×7 – a limitation that impedes human interaction. These virtual assistants are now handling more queries than ever before and helping customers find information in a matter of seconds, which has resulted in improved customer satisfaction rates.
The Advent Of Cryptocurrencies
Cryptocurrencies have been disrupting the banking industry for the past few years, providing cheaper and quicker ways for users to complete their transactions. We’re yet to see how this wave will impact the sector in the long run but it is already noticeable how it’s reshaping the modes for transactions and payments. Customers are already benefitting from cryptocurrencies for transferring money, saving time, and reducing costs.
While the advancements in FinTech have been occurring at a lightning-fast pace, we have only just begun to scratch the surface of what’s really possible. It has become quite evident at this point that that FinTech is changing our lives by making it easier to trade, bank, and exchange money without the need for any physical human interaction.