Fintech Revolutionized Rather Than Disrupted Financial Service Industries

fintech innovatorsFinancial technology was initially introduced as a computerized back-end system that banks used as support in the processing of financial transactions. However, developers of financial technology or fintechs, as they came to be known, gave more focus on developing computerized financial processing systems to expedite the delivery of financial services and products to consumers.

Fintechs Were Initially Viewed as Disruptors

At first, fintechs were viewed as disruptions in the financial sector because they adversely affected the traditional operations of the banking industry. Yet in order to survive and thrive, banks and other financial institutions adopted innovative technological advancements provided by fintechs.

Doing so enabled them to offer online payment and investment solutions that were 10 times faster and more convenient than the conventional methods.

Collaboration Between Fintechs and Financial Services Industry

The newfound collaboration between fintechs and banks, insurance companies and users of e-commerce platforms, gave consumers access to user-friendly online banking systems and mobile applications that made it possible for them to make real-time payments, fund transfers, avail credit facilities, place investments, perform wealth management and other financial transactions.

data analyticsOn the other hand, banks and the industries that have adopted fintech solutions, were able to gain access to data analytics that gave them the capability to operate with increased efficiency.

Moreover, the powerful analytical tools that form part of fintech innovations provided users with valuable customer insights that helped them better understand their respective clients and their needs.