It’s happening now, and the handwriting is on the wall for banks who face potential extinction thanks to the emergence of financial technologies, or “fintech.”
Our COO, Sukhi Jutla, was recently quoted by Finance 101 in their article ‘6 ways fintech is changing banking for consumers’.
She said: “The rise of blockchain and digital payments could severely damage this income stream for banks as customers don’t want to pay more for something they can get cheaper or for free elsewhere;
Via convenience and faster turnaround times. Fintech is also increasingly using artificial intelligence and machine learning to help people with decisions when it comes to savings.
Consumers can now choose financial products like pensions and mortgages … much faster than they can with traditional banks; Fintech allows bank accounts to be opened in a matter of minutes compared to traditional banks which can still take up to several weeks to open basic banking accounts.
In addition, many banks still don’t have decent online banking services or still require that customers visit a branch for identification and verification purposes. With fintech, this all can be done at home with the use of facial recognition technology on your mobile phone.
Banks are no longer enjoying the immunity their reputations and size previously gave them.
The industry is no longer dominated by monopolies; instead, fintech has produced new competitors that enable banking consumers, for the first time, to actively choose banks on their terms.
Simultaneously, banks are falling out of favor as they are unable to stay current with changing technologies such as blockchain, cryptocurrencies, and artificial intelligence wealth managers.”
Read the article here.