Fintech being the latest buzzword in the finance industry, more or less many people have already come to know about it. For those who are still in the dark and are finding this term totally unfamiliar, fintech is a whole new industry offering financial benefits to various organizations.
The fintech industry is made of different companies that offer innovative and latest financial technologies for the betterment of financial services. With the growing competition in the market, more and more banks are opting for a partnership with this latest industry.
Here are the main reasons for why most banks are thinking about teaming up with it:
Allowing Latest Payment Methods
Providing innovative technological ideas for easy online transactions, the fintech is providing the banks with excellent financial services. Banks have suffered a serious loss in popularity, over the past few years due to their not-so-updated financial methods of proceeding with transactions online. The financial crisis is acting as an eye-opener, so the banks are now relying on fintech.
Presenting the Refreshed Version of Brands
Around 83% of respondents are referring to fintech as the main factor in enabling them to refresh their brandings. Fintech is helping the banks to improve their relationship with the customers in the best possible way.
It’s also allowing banks to introduce the latest offers and services to the customers in the fastest way possible. It is simply providing opportunities for various financial organizations of repositioning themselves in the market through its cutting edge technologies.
Banks Are Able to Cut On Costs Significantly
It has been seen in the records that 87%of the total participants have been able to cut the costs successfully. The fintech sector’s total amount of transaction value is expected to grow up to $ 1.57 trillion by the year 2020.
So, there’s no doubt about the effectiveness of it in cutting up the costs. The reasons for these huge amounts of savings are the agile and flexible structure of fintech, as well as the lesser requirement for developing the services offered to the customers at the end of the incumbents.
Increased and Boosted Revenues
In the recently conducted survey, it has been seen that almost 54% of the incumbents have experienced a certain increase in their revenues. With the passage of time it is expected that the number of profits will be boosted more than now or ever. For enjoying the benefits of the partnership with fintech, specific areas and strategies must be formed and decided by the banks.
Letting the banks in on the latest trends of financial service technologies, it is helping banks to transform and embrace digitalization. It is by joining forces with fintech, that banks would be able to stay updated in the dramatically and drastically changed online payment landscape.