Fintech companies winning big in banking and finance

Fintech companies winning big in banking and finance – here’s why

Traditional banks have long reigned over the financial services industry. When the 2008 financial crisis shook the economy in Asia and around the world – this began to shift, and new restrictions were put in place to pave the way for disruptors in the fintech industry and challenger banks to emerge.
The new contenders — operating on tech-powered platforms and with digital features — are set to offer new-age banking services that capitalize on “data-fueled, hyper-personalized experiences in real-time.”
A phrase used in the new Capgemini World Fintech Report 2020 that captures the appeal of the innovative service and challenger banks. It also gives insight to the likely reason why 40 percent of Gen Z customers – notoriously tech-savvy and demanding – are unsatisfied with the existing services at their current banks and are ready to leave within the next year: they simply don’t feel catered to.
Challenger banks also possess the potential to tap into the masses within the unbanked community. With emerging tech seamlessly integrated into financial services, these new ways of banking can address the universal issue of disparity in financial inclusion.
Globally, close to one-third of adults — 1.7 billion people — remain unbanked.
Fintech can leverage technology to build a bridge to the unbanked community with financial services. For example, individuals who don’t have a bank account are still able to utilize banking services, like making online transactions or doing direct debits. All of this is possible with the use of a sort code and account number.
In addition to expanding the reach of financial services, fintech is all about user-centric services and control.