5 Ways Fintech is Disrupting the Financial Services Sector
The world’s financial ecosystem is one of the most advanced and forward-thinking industries. Why? Its players are ever eager to advance to the next big thing!
The financial-technology sector, popularly known as the fintech industry is impacting multiple services in the money services industry including customer support, financial management counselling, borrowing and lending, payments and transactions, insurance and so on.
In fact, studies show an entire 85 percent of banks now prioritize the shift to digital payments. And now, we hope to see more disruptive and useful technologies emerge from the many the mergers and acquisitions we witnessed in the industry throughout 2019.
But what is the critical role of fintechs in the globe’s money services industry:
1 Omnichannel CX
Experience is everything for today’s customer. And it is not any different when they come seeking financial services.Fintechs meet customers at their point of need by being available in all channels including live chat, email, and social media and so on.
This cross-platform availability meets customer expectations of faster support and round-the-clock availability when they need help. And banks have followed suit too in a bid to streamline services for their customers.
An omnichannel experience also allows banks to engage their customers better, offer personalized experiences and enjoy hassle-fee customer onboarding.
2 A consolidated industry
Thanks to fintechs, banks are now more willing to work with third-party companies and welcome their creativity. This is further evidenced by the many mergers and acquisitions which focus on streamlining banking services to satisfy customer needs even better.
Back then it was uncommon to find a bank partnering with a small financial technology firm. But recently, we’ve witnessed banking systems worldwide welcome innovative ideas from small companies and work together with fintechs.
In retail ecommerce, the chatbot technology is popular because it allows businesses to engage their customers round-the-clock. And the financial services industry is increasingly adopting it for similar reasons.
Chatbots can offer customer support when human agents are not available. Though their roles are still limited to handling basic queries, they reduce response time and improve CX.
In banks, these tools help in handling the many requests that flow in and directing clients to the various resources they need. This allows human agents to concentrate on more complex issues that chatbots cannot solve.
4 Automated financial advice
Virtual financial advisors are increasingly taking over the role of old-school operators in the financial advice space. These days, it is not unusual to find a customer enjoying financial advice via platforms like live chat.
With automated remedies like real-time chat platforms, customers no longer have to walk to a bank for financial advice.
5 Blockchain & Cryptocurrency transactions
Customers are pacing the transformation to faster, affordable and easier ways to pay like crypto and so is the banking industry.Of late we’ve seen a change in attitude among banks and hopefully 2020 will mean much more for Blockchain and crypto.
The Fintech disruption is real, and it is good for the financial services environment. After all, digital customer-centric financial services is all we need in a world where business is evolving.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant loan solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.