The rate of disruption occurring within the financial services business is at an unmatched level, with lots of ‘Fintech’ companies, like Moneta International UAB, moving up the ranks and transforming the way technology improves the practice of moving cash.
Imagine a globe where the big banks are contending with corporations that have low and nimble footprints, and use everything from new mobile technology to Artificial Intelligence to make the client experience seamless.
The new backdrop of Fintech groups is picking off parts of the banks and turning them into international businesses that boast a frictionless online experience for the client. Eyal Nachum (co-founder of Moneta International UAB) says, “Banks will not die, but we will see Fintech groups choose off some things like foreign currency transactions.”
What are ‘Fintech’ groups?
Fintechs typically provide “better user experience, lower cost and a keen aim on solving a particular problem. They can even build products much quicker and cheaper than big banks as they don’t have the conventional working staff and systems to fund or contend with.
The financial service sector, which saw the major disruption from Fintech was customer banking. This is possible because customers are looking for new means to transfer their fund on the go and with as little friction as possible.
The big bank’s infrastructure also allows little space for agility – meaning that Fintechs can range and grow exponentially, providing new products, and services all the time, while the banks are simply applying digital technologies to advance their existing service.
Fintech has the prospective for a more broad future
The potential that comes with this ‘decentralization’ of financial services could build an ecosystem where banks and Fintech corporation can work more collaboratively in allocating resources, and therefore making it simpler to keep up in our quickly changing world.
As people in these new Fintech groups are often not from banking, they are from outside banking environment, thus want to offer a more enhanced experience for the consumer. This creates room for innovation in the broader skills as people come from diverse backgrounds.
Payment service providers, digital challenger banks, digital wallets, lending platforms, cryptocurrency groups, and data aggregators are all transforming the financial services sector. Blockchain, Artificial Intelligence, and robot technologies are driving improvement in the sector in new ways.
Superior connectivity will be the key to prolonged existence
The Fintech segment is fast-moving, and any successful corporation needs to be extremely flexible and highly adjustable to survive. Ensuring that each part of the company is connected, whether it be via data, process, or the people themselves, will help in better decision-making and the capability to stay lively in a time when financial laws and rules can change rapidly.
Traditional businesses frequently compartmentalize their operations into departments, and in lots of situation, those departments become unsuccessful to communicate, leading to serious oversights. When everything is connected, a good flow of information is possible, meaning Fintech corporation can be much more nimble than their competitors. This can truly pay off when you are contesting against multi-national financial institutions with huge capital and resources.