A Wave of Change: Will Fintech Bring an End to Traditional Banking as We Know It?

by admin December 12, 2018

The tech experts are busy all night trying to get the best since sliced bread.

The need to come up with new inventions in the tech world is what makes the tech industry stand out from the crowd while eliminating those who can’t keep up with the pace.

Sadly, tech space is becoming more and more ruthless, such that the riches are rarely seen and failure is a no surprise.

One of the trending issues in the world now is the Financial Technology. There has been new inventions, ideas, and businesses are giving the banking industry sleepless nights – because if they can’t keep up with the technology, then they are going to be consumed.

In 2015, investment in the space in the Asia-Pac region topped $3.5 billion, significantly up from the $880 million we saw in 2014.”

It is true that the figures have increased immensely and therefore, this is a too-good-to-true stat to ignore.

There have been debates in the recent past that Fintech could sink the traditional banks, but is this really true or you are just concluding too fast?

However, when you look keenly at this stalemate, you can as well realize that the traditional banks too could be a threat to the rival – Fintech. In fact, if the Fintech industry isn’t keen, then they could be the ones who could be kicked out of the market so soon, and it will be a no surprise for anyone.

Public Sentiment is Creating Innovation Opportunity

There is noise all over. Yes, noise! But why noise? The public is making a lot of sentiments, which is making this topic hotter every single day.

The Global Financial Crisis made the public lose trust with the banking sector. No, they just don’t want to listen to them again after that crisis.

It is no secret that little has changed in the traditional banking sector for more than 20 years now, while in the Fintech industry, a lot has changed.

The truth is that big banks have failed to satisfy their customers in terms of technological services. It’s always that either the technology they come up with is slow or clumsy, or clunky. This makes them lose potential personal finance enthusiasts.

But what does this mean now? It simply means that this is an opportunity for the innovators to jump into the bandwagon and have a bite. In a nutshell, the banks are vulnerable and they should act fast.

Innovators and Disrupters Will Help the Banks Improve

Have you ever done any transactions with the bank? Sure, their processes are downright frustrating and you can lose patience so easily.

Now, this is where there is the opportunity; the Fintech should now have strategies on how they can change the way banks serve their customers.

Bottom Line

Just to be honest, the banking sector is not an underdog and it’s one of the industries that is protected. So, stumping it out will mean that the Fintech industry must do a lot.

Therefore, in as much as you may think that the traditional banks are underdogs in this battle, it will be a do-or-die battle where no winner can be decided prior.