Category Archives: Business

How Financial Institutions Will Benefit from Fintech: What You Need to Know

How Financial Institutions Will Benefit from Fintech: What You Need to Know

When discussing fintech, it’s common for experts to focus on how this technological revolution will impact the overall relevance of banks and other traditional financial institutions. Some argue that banks will no longer be relevant in a short time. Others suggest that banks can partner with fintech firms in order to survive shifts in the financial services industry.

And yet, there are also some who believe that traditional banks are so entrenched in the sector that it’s unlikely fintech will do away with them completely. Instead, they suggest, the rise of fintech may simply result in banks adjusting their business models to better serve consumers.

 

Consumers No Longer Have to Settle

For a very long time, customers had limited options when seeking financial services. Because there were few alternatives to traditional financial institutions, they had to settle for the quality of service banks were willing to offer.

Fintech has changed that. Now customers have the opportunity to take advantage of more convenient options when seeking key financial services. However, according to some industry insiders, this does not mean that banks must watch as their customers flock to the competition.

Instead, it simply means that banks will now be forced to change with the times. To stay competitive in the industry, they must identify the advantages that new fintech companies offer. They can then simply shift their own business models in a manner that addresses consumer need.

That’s a key benefit of the fintech revolution that should not be overlooked. Obviously, consumers benefit when the businesses providing them with necessary services are forced to improve upon those services. That said, there’s good reason to believe that traditional banks and similar financial institutions will also benefit from these changes in the long run.

 

mobile banking

 

Fintech Could Improve Banks’ Business Models

It’s possible for banks to innovate in unique ways. Banks that have been doing business the same way for years are capable of positive change. They just haven’t been forced to change in a very long time. They’re accustomed to competing with each other, instead of competing with outsiders. This inevitably results in some degree of stagnation.

Times are now changing. Customers are opting to take advantage of fintech solutions in many instances. Thus, banks must consider, for the first time in a long time, how they can revolutionize their own business models. This may very well result in new ways of serving customers that allows banks to reinvent their core identities.

In other words, innovating can be more than a means of simply keeping existing customers. Banks may now find they can innovate to such a degree that they will actually attract new customers.

 

Fintech May Increase the Supply of Talented Workers

The rise of the fintech revolution can also provide benefits to traditional financial institutions. It may provide them with talented workers who have the skills, experience, and insights necessary to drive key innovations.

Prior to the fintech revolution, young people interested in working in the financial services industry studied traditional ways of doing business. As a result, most of the new talent working for banks up until recently has consisted of individuals who don’t offer the kind of dynamic new perspectives that yield major improvements.

Again, fintech is changing that significantly. Colleges across the United States (and around the world) have identified a demand for fintech-centric programs among new students. Intelligent, ambitious young people understand that fintech offers many job opportunities. They’re eager to acquire the skills and knowledge they’ll need to work in the field.

 

The Stability of Banks May Appeal to the Next Generation of Workers

This by no means indicates all those students are exclusively interested in working for new startups. They may very well wish to find jobs in organizations that offer greater job security and reliability.

They may graduate with a specialization in fintech. However, they could certainly be interested in pursuing careers in which they can leverage their newfound expertise to help traditional banks adjust their business models.

Additionally, the rise of fintech has also given rise to online fintech programs. Banks that pay attention to these shifts can innovate more efficiently and effectively by recruiting talented young workers who will help them better understand what changes they need to make to stay current with the times.

 

curriculum

 

Bank-Fintech Partnerships Should Still Be Explored

Of course, this isn’t meant to suggest that banks should abandon the idea of partnering with fintech startups. While an influx of new talent is likely in the coming years as students graduate with fintech degrees, banks can get a headstart by coordinating with existing fintech firms to begin innovating now. The results could soon benefit both consumers and banks in major ways.

How Fintech Is Changing Real Estate: What You Need to Know

How Fintech Is Changing Real Estate: What You Need to Know

Fintech is a very broad term. It applies to technologies that change the way we spend money, save money, invest funds, and buy insurance. Investing in (and developing) real estate is yet another process undergoing major shifts thanks to fintech. Anyone interested in real estate investment should pay attention to these changes now. By understanding… Continue Reading

How Banks Can Collaborate with Fintech Companies: What You Need to Know

How Banks Can Collaborate with Fintech Companies: What You Need to Know

Anyone with an interest in the fintech revolution knows emerging companies and innovations have put traditional financial institutions at risk. As startups continue to offer users convenient alternatives to numerous financial services, banks and other established institutions will have to adapt to stay relevant. Collaborating with fintech companies is likely the most effective way to… Continue Reading

Universities Embracing Fintech: What You Need to Know

Universities Embracing Fintech: What You Need to Know

Anyone who is familiar with fintech would likely agree that the industry has grown at a fairly rapid pace. That said, there are some factors that can limit the progress of any technological revolution. As this blog has pointed out before, one of those key factors is regulations. Because governmental regulations naturally apply to fintech… Continue Reading

Why Millennials Love Fintech: What You Need to Know

Why Millennials Love Fintech: What You Need to Know

Lately, fintech products have been exploding in popularity. They offer convenient alternatives to existing financial services, so it makes sense that customers would embrace them. Millennials and other younger customers, in particular, may be the key contributors to the acceptance of fintech products. They’ve grown up in a world where digital technology has rapidly simplified… Continue Reading

This Is Why Tech Giants and Banks Should Collaborate

This Is Why Tech Giants and Banks Should Collaborate

It’s no secret that fintech startups have disrupted the financial services industry. As this blog has pointed out before, the convenience and efficiency these businesses offer their customers may threaten the continued relevance of traditional financial institutions. Banks will have to collaborate with fintech startups in order to adapt to the changing landscape of the… Continue Reading

This Is How Fintech Can Help Banks

This Is How Fintech Can Help Banks

Digital technology has theoretically made it much easier for financial institutions to offer personalized service to their customers. Banks can provide personalized service in many forms. For example, by monitoring a customer’s transactions, a bank can identify products or deals that may be suited to a particular customer’s lifestyle. This is one of the major… Continue Reading

How to Design a Successful Fintech App: Essential Qualities You Need to Focus On

How to Design a Successful Fintech App: Essential Qualities You Need to Focus On

Fintech products succeed because they offer convenient alternatives to existing financial services. That said, not every fintech product will satisfy customers. Sometimes entrepreneurs focus so much on creating an innovative service that they forget to prioritize basic elements of a strong digital experience. It’s important not to overlook such elements. Those who have launched successful… Continue Reading

How Fintech Can Help Brick-and-Mortar Retail: What You Need to Know

How Fintech Can Help Brick-and-Mortar Retail: What You Need to Know

Anyone who has studied the impact that emerging technologies have had on the retail market understands that e-commerce has significantly impacted the popularity of brick-and-mortar shops. Thus, it’s easy to understand why some people assume this trend will naturally continue. They believe that as technology continues to develop, shoppers will be less and less interested… Continue Reading

This Is How Regulators Can Support Fintech in the United States

This Is How Regulators Can Support Fintech in the United States

It’s easy to understand why customers embrace fintech products. They simply offer a degree of convenience that traditional financial institutions can’t match. However, that doesn’t mean fintech companies never encounter roadblocks when trying to bring their products to the market. When you offer a financial service, you must navigate a regulatory landscape that is often… Continue Reading