The term “Fintech” (otherwise known as financial technology) is commonly used to describe a company that provides financial services through the use of modern technology.
With the significant advances in technology, these companies are seen as having a revolutionary impact on financial services such as banking and investment management and are recognised as genuine competitors to the traditional banks and investment firms.
There is an increasing demand from customers for flexible services for managing money that can be easily integrated with our increasingly digitised day to day lives. Let’s look at five Fintech trends organisations in the financial industry are introducing to gain a competitive edge.
- 24-hour accessibility
In recent years, online banking has given us the capability to manage our money from the comfort of our home. It is now possible to do most banking activity online, from simple transactions to the more complicated tasks such as mortgage applications.
Less of us will find ourselves walking into a bank, as banks adapt to consumers demanding services on their own terms such as being able to manage their account on all devices and having access to it wherever and whenever they want.
- Use of mobile devices
Where the internet succeeded in moving customer relationships from bricks and mortar to the online sphere, smartphones have taken banking to now be on the move.
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The rise of mobile payments is one of the most major changes in recent times for how a consumer manages their money. With the explosion of mobile apps and contactless technology, traditional methods to transfer money such as cheques has rapidly declined in recent times.
- The Internet of Things
A digital revolution that is happening right now is the idea of the Internet of Things. As an increasing number of us use smart devices, we are becoming part of an intuitive connection of devices in our day to day lives. Significantly this connectivity enables the collection and exchange of data. For financial services, such as banks, this access to data is a valuable source of information for competitor advantage.
Being able to track and analyse the behaviours, wants and needs of their customers means banks will be able to provide us with more tailored offers and personalised experiences. In an era where it is simple to move banks, being more customer-centric in their services will be crucial for retention.
- Wearable Technology
Wearables such as smartwatches have soared in popularity in recent years and are contributing to the Internet of Things concept.
Alongside smartphones and mobile apps, as more innovative wearable technologies continue to be developed, never before have we been more connected to our money.
- Security
In an era of the Internet of Things, digital security is critical for the protection of a customer’s details and data.
To maintain trust with customers, there has been significant investments to protect against cyber threats, as financial services such as banks have been rolling out biometric services including fingerprinting authentication and voice recognition technologies, both of which many believe will soon replace passwords.