Why Embrace Fintech in Retail Banks?
You will be surprised by the number of retail banks that are still quite old fashioned when it comes to technology. So why should we embrace Fintech? This article covers three main reasons why Fintech is so important in the banking industry and why should it be harnessed.
1. Fintech and the forefront of banking services
Banking industry is quite old compared with other ones – take technology or telecoms for example – so not surprisingly, they are still keeping their forefront banking services very personal and usually are directly in contact with the consumer. However, due to non-traditional competition from technology companies, they need to keep in mind that front-line employers have to take a little step back and place a huge emphasis on new innovative Fintech technologies in order to beat a competition.
2. Consumer and historical data
In order to please a consumer, banks need to look at their needs and wants. Due to the rise of Fintech, consumers are aware how beneficial accessing historical and competitive data is. For example companies like Apple, Amazon or Google, who are embracing mobile wallets, offer a single access point to all debit and credit cards even if they are from different banks. This trend is definitely going to stay in the industry and many new regulations will be introduced, therefore it’s essential for retail banks to understand the importance of Fintech now.
3. Fintech start-ups
We slightly touched on non-traditional competition in our first paragraph, as it is highly important for retail banks to understand the power of new Fintech start-ups. The rise in Fintech companies was influenced by the disruption in the banking industry and heavy backing of technology innovation across the globe. This is significant for banks because even though Fintech start-ups are significantly smaller, they often are more efficient, speedy, convenient and up-to-date. Therefore banks need to look at these Fintech start-ups not only as an opportunity or potential partners, but also as non-traditional competitors.
If you want to learn more about the importance of Fintech and why banks should embrace it, visit our conference in the financial hub of finance – London. Harnessing Fintech Innovation in Retail banking event will take place on the 7th – 8th of June, 2017. You can book your place here!