At the cost of sounding cliché, let’s agree that technology has changed everything we knew about getting things done. Fintech, or financial technology, has redefined the financial sector, and it is expected to further evolve in the next decade. Back when fintech initially made headlines, it was more about backend applications. After successfully revamping the same, fintech is now more about end-user experience and other aspects like financial security. Financial advisors like Nadeem Shaikh agree that compliance and offering digital yet personal experience for customers would be the two most important concerns for financial services, and fintech will determine the path for that. In this post, we are discussing the pros and cons of fintech at a glance.
Pros worth noting
- First and foremost, fintech allows financial services to offer better speed in transactions and easier access to services. Automation has changed the way people shop online and use some of the common financial products, such as insurance and mortgage.
- Fintech also brings transparency to the entire sector, allowing businesses to have better relations with their customers. For the end user or buyer, there are more choices, and they have the power to take a call, without relying on just one service or manager.
- Fintech also gets away with the expenses that were earlier associated with the industry. Paperless transactions are mostly cost-free these days with banks and financial institutions, and as new technology crops up, services will become more accessible and cheaper at the same time.
- One of the biggest advantages is personalization. Just because people have digitized services from financial companies doesn’t mean that it wouldn’t be a personal experience. In fact, brands are spending huge on that front.
- Finally, fintech also allows companies to gather data and get information out of the same. Data mining is easier as more proprietary services come to the forefront.
On the flip side
New tech comes with new challenges, especially because the regulations and compliance norms are not always clear in many industries. Adding to that, many customers have their own concerns, especially when it comes to cyber security and accessing financial products and services online. With all that in consideration, it is necessary to build a secure environment using fintech that encourages the masses to go online and use digital services.
To know more on how fintech can help your business, check with a finance expert.