Fintech has become a buzzword that has seen the finance and tech industry join forces like never before, allowing banking institutions to quickly evolve their services to the benefit of their customers.
Thanks to ever-improving technology we can now manage our money with speed, efficiency and convenience.
To understand how that affects you, here are 5 ways fintech is changing the way we bank.
The finance sector is continuing to embrace the use of artificial intelligence (AI) as it becomes more cost-effective and accessible as a result. It is being used on the front line of the ongoing battle against e-fraud, protecting customer’s money and the bank’s financial assets.
AI also allows banks to make much faster decisions when it comes assessing applications for long-term or quick loans. Historical data about the individual can be analysed and processed in a fraction of the time it can take a human, while also cutting down on potential mistakes that could jeopardise the lender’s money in the event of a default.
Chatbots are being used by financial institutions as a way to deal with low-level customer enquiries on their website, providing quick and accurate answers to keep the customer engaged.
This machine learning tool gets better the more it is used and can be so convincing in many cases you may not even be aware you are interacting with software rather than a human. It’s a win/win for both bank and customer, as the former cuts down on costs while maintaining service levels, while the latter receives the help they need quickly and efficiently.
The move towards a cashless society hasn’t happened as quickly as some experts predicted but it’s still very likely to happen in the near future. Payment apps are playing a big role in ensuring that shift continues apace, with many linked to major banking systems to facilitate online shopping, money transfers and investment plans. It means more convenience for customers through speed of transactions and the ability to shop at any time they please.
Online and open banking
For as far back as we can remember visiting a bank in person was the only way to access and manage money in your accounts. An increasing number of banks and building societies are closing their branches with a focus on using apps and online portals instead.
E-banking is booming and more online only banks are also becoming the norm. For banks it removes the overheads that come with maintaining high street branches and it creates convenience for customers who can access their money anywhere and at any time.
Fintech mortgages are shortening the lengthy application process that usually comes with requesting such a high-value loan. As they continue to increase in popularity they are providing a more transparent and efficient system.
While traditional lenders still rule the roast in this market, the speed and convenience provided by online mortgage platforms will eventually see this method become the dominant force in years to come.