Changing Customer Banking Needs and FinTech Alternatives
The change in customer expectations and banking needs offers an opportunity for FinTech companies and non-banking technology companies to loosen the grip traditional banks have had on customers for so many years. Challengers can lure customers away from traditional banks by offering technological advances and diverse services. This causes disintermediation between the banks and their customers, cutting out the middleman and reducing the role traditional banks play to a basic assets and liability management position.
Most FinTech companies don’t want to replace banks completely but aim to integrate specific, more convenient services into the finance industry. By offering an alternative platform where customers can take advantage of recent digital advances in banking technology and software FinTech companies allow customers to easily open bank accounts and effortlessly monitor and control their finances even switching smoothly between providers at the touch of a button.
In a world where everything is instant, one click and you have what you want; customers demand immediate results when they do their banking. In the future banks will have no alternative but to offer a modern digital platform that can provide digital solutions in seconds. Immense resources will be necessary in order to develop and provide instant delivery of banking services and the back office process with have to be restructured to reduce the number of steps in the process.