Whether one likes it not, times have come for the financial whiz-kids in the banking halls and back-offices to sit up and take notice.
The Fintech juggernaut is rolling by and capturing the mindspace of the brave, new generation at blistering speeds; surely and steadily transporting them away into a world where it’s no more business as usual on the financial services and delivery front.
Fintech companies are innovating their wares daily, and what combines them into becoming the ‘next big thing’ is their passion to do things smartly, differently.
Trouble is, as this expansion and migration by new Fintech processes are happening the world over, followers of the traditional financial infrastructure find it hard to adapt to the change and also to absorb the latest generation technologies that are overtaking them.
Demo presentations of new Fintech-based payment processing or fund transfer models which incorporate newer and smarter applications, features and operational ease are arbitrarily labeled, ‘high risk’ by these decision-influencing population within the bank’s corridors of power.
Pass this challenge somehow, and you’ll accost another hassle – the existing infrastructure. With IT/ITeS connections running all over the place and through laborious and long-winded communication interfaces, backed by poorly managed documentation systems staring in the face, ‘the spaghetti network’ scenario where day-to-day intranet and internet banking operations are processed arrive as another nightmare.
The flow of work within a traditional banking environment, for instance, is highly subject to the individual legacy system’s internal requirements. They’re driven by the respective supplier’s design parameters. Thus, on the whole, the entire system does not fit into a general customer model that’s easy to operate.
Fintech companies that understand the language of the future in banking services and customer satisfaction management have already moved ahead in conquering this territory of change.
And the reason they are growing fast is they know the problems faced by the industry and have already designed the correct and provide a massively flexible infrastructure for them to solve these issues.
This is where firms selling ‘big data solutions, analytics or compliance services will score over the rest’, says Todd Latham , an industry expert. ‘They’re the ones to watch’.
Suffice it to say that Fintech as a market possibility is gaining a lot of buzz amongst the financial and banking circles of today. With innovative wave sweeping in, much has changed since the first wave which focused on consumer experience in the B2C sector.
Little wonder then, stakeholder investments are burgeoning in the Fintech industry, with an eye on the long term. ‘Every business is one day expected to make profit. If your revenue growth is based on ‘cheap’, you engage in a race to the bottom and your business is hard to sustain. But, in financial services, as in all industries, customers are willing to pay for value, be it great service, great user experience, or benefits they cannot get elsewhere. Value pricing is sensible, cheap is unsustainable.’, comments an industry player’s viewpoint on this subject, in a published article.
Without fintech companies operating in the B2B space and acting as aggregators – companies would not be able to offer consumers the savings that they do today’ , the article concludes.