Fintech or financial technology firms have taken the banking and finance industry by storm. Backed by the incessant growth and adoption of the internet and smartphones, these companies can permanently disrupt the traditional system of banking in futurity. Constant progress towards democratizing finance and the growth of financial inclusion has been a predominant contribution that these firms have made to this industry. They have been able to create an enhanced and personalized user experience with comparatively greater functional efficiency. Fintech has opened doors of opportunity that were previously closed by traditional financial institutions for the masses. This has caused a sudden change in attitude and an upliftment in the morale of the common man. An individual with access to these facilities has become more confident and able with a determination to achieve the goals that he once thought were impossible. Some of the more evident advantages of fintech over the traditional financial industry are:
- Cost Reduction: The integration of the digital and the physical modes of payment into a unified payments interface is the single most important advantage for businesses and consumers alike. This helps reduce the cost of the overall transaction to almost nil. Hidden fees that had persisted in the traditional financial system of banking and payments have also been eliminated by fintech. This enables individuals to carry out transactions conveniently and at a much more affordable cost.
- Convenience: Fintech has been successful in creating a single and integrated platform for all financial activities. With a significant boost in the ownership of smartphones and the strong internet connectivity across the country, it has become ever more convenient to conduct financial transactions at any point in time. This also enables businesses to streamline their processes and offer a better customer experience across all verticals.
- Providing better customer services and generating a higher revenue: The fintech firms have also increased the customer retention rate for companies and businesses. Companies can engage more frequently and directly with customers to address their grievances and enhance their experiences. It also enhances the ease of access to various financial products by enabling customers to complete the Know Your Customer (KYC) process online.
- Catering to a wider spectrum of the population: Fintech companies have been able to penetrate the rural population by offering a one-stop-shop application for all their financial products and services. Right from making a payment to taking a loan, the fintech companies have been successful in keeping their customers engaged by creating a much more interactive user interface than traditional financial institutions and providing incentives and rewards for frequent transactions. This also helps create awareness of banking and financial products among individuals at the grass-root level.
The momentum of disruption witnessed in the banking and finance industry has been unprecedented in the last few years. Consumers’ adoption of fintech applications and platforms has been growing rapidly across the world. The rate of traction has been exacerbating due to the distinct advantages stated above. At FatakPay, we have a completely vertically integrated fintech platform. Our platform has an integrated payments system using which bill payments and fund transfers can be made. We also provide instant hassle-free credit to anyone in need through our system of virtual credit facilities. To satisfy consumer demands, it is extremely important for businesses and product-oriented companies to fully understand the potential in the fintech industry and should look to embrace this ever-involving technology for digital agility and exceptional customer experience.