While many traditional providers struggle to replace cumbersome, outdated and time-consuming legacy systems, forms and processes, Fintechs are enabling customers to set up services with as little as one click. Customers are enjoying more attractive rates, access to different products and service and a better online experience but most significantly, it is the simplicity involved in using Fintech products and services that is driving adoption.
Besides offering old products in a new guise, Fintechs develop completely new services, such as cross-border peer-to-peer (P2P) payments; micro-lending and robo-investment platforms where almost all processes are based on algorithms where barely any human intervention is required. This makes some established offerings obsolete, effectively shrinking the profitability of the traditional banking sector.
Fintech draws together pools of talent including incumbent financial organisations, technology firms, regulators, venture capital firms and entrepreneurs on a global scale and in new ways.