Fintech! It’s got a good ring to it, right? We have been hearing this term quite a lot for the past couple of years. But what does it mean? Fintech or Financial technology is the type of tech that helps in automation and delivery of financial services. While banks are dabbling into it, third-party Fintech organizations are way ahead with much to offer. According to a Statista report, the global Fintech industry’s revenue is set to reach 188 billion Euros by 2024.
While we might have heard of Paytm or Western Union even around 10 years back, we did not know how to use it to its full potential. In the last 5 years, especially with demonetization and pandemic hitting us hard, we decided to grab the opportunity of learning more about fintech. Taking advantage of this, more and more companies have emerged and the fintech industry has become a rather big market.
But, why are companies opting for fintech solutions now? Some of the major issues that companies continue to face when it comes to satisfying their customers are lack of transparency, long transaction times and high costs. To solve these and a few other problems, organizations are choosing fintech solutions.
Why are companies choosing fintech solutions?
Let’s look at a few of the key reasons why companies are choosing fintech solutions:
- Speed: The foremost is speed. In the post-pandemic era, people like fast-moving things. Everyone is now used to things getting delivered to their doorsteps within minutes. Our patience level for a particular website is at best a few minutes. Fintech solutions help grab people’s attention by offering speedy services with the help of advanced algorithms and even AI. Be it international payments or the granting of loans, everyone is looking for faster solutions.
- Convenience: Let’s be honest, we all feel relieved that we don’t have to keep travelling to ATMs to withdraw cash or write cheques for big purchases. We are just a click away for most of our transactional and financial needs. Especially with the pandemic and social distancing norms coming into effect, people have been looking for more convenient options. With services like chatbots and 24/7 accessibility, companies can ensure customer satisfaction.
- Transparency: Gone are the times when we couldn’t see where our money is and what’s happening behind the “May I help you?” counter. People want tangible solutions. They want to track everything. From an order bound for delivery to loan approval pending, anything can be tracked now. When we empower people with options to see their transaction process and time frame for the process to be completed, option to track refund process and more, we win their trust as it gives them a sense of security.
- Cost effective: One of the reasons why fintech is on the rise is because it is cost effective. We are all very particular about the costs involved in a single transaction. What fintech does is that it offers an overall competitive service cost which will seem rather small when compared to costs involved in carrying out the same task physically. In the end, one will most likely be saving on several small costs by opting for the online service.
- Flexibility: By flexibility, we mean choice. With more and more fintech firms coming up, there is competition and each organization wants to offer more and better services. This gives the customer an option to choose and the company to outdo others and themselves by constantly expanding and innovating. Customers can choose fintech solutions that are best suited to them, this means breaking away from traditional banking or even digital banking if it has limited options.
According to a 2021 Forbes article, industry data from McKinsey shows that there has been a 4-5% reduction in global cash payments, which is four to five times the recent yearly decrease in cash usage. Technological fintech solutions can help consumers adapt to the changing demands at work or school, in commerce, recreation and even travel, the article added. Today, people are not afraid to experiment. Companies should try to upgrade their fintech solutions for better customer satisfaction. Aspire Systems is a seasoned professional in developing fintech applications powered by modern technologies for various segments of the financial sector.
Fintech! You must have heard of it! Fintech or Financial technology is the type of tech that helps in automation and delivery of financial services. But why are companies adopting Fintech solutions now? Is it just the convenience? Read on here to know more about fintech solutions!
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