Glimpse into the future of banking: Techfin/FinTech

Future of Banking

Today is the world of digitalization and it is growing at the fastest speed. This transformation brings traditional business into a digital one and affects most of the industries.

Here, I am talking about the future of banking ecosystem which will totally look different and much more will extend beyond financial services in the future. This industry is experiencing a big disruption at a high pace which also brings opportunity in the new technology.

Last few years, all types of FinTech firms where traditional or non-traditional are capturing more and more banking value chain, providing a different experience in payments, savings etc. that will cut much of traditional banking revenues in the foreseeable future. On the other side, all types of big firms are providing financial services, creating Techfin solutions.

The advantages or Fintech firms are their collaborative approach with banks, innovations, speed to adjust, consumer-centric approach and digital infrastructure. These above advantages are becoming a threat for the financial institutions and it will take time for them. 

On the other hand, the edge for financial institutions has a large customer base, trust and brand recognition also having adequate capital, knowledge of compliance regulations and distribution networks.

According to the  World Fintech Report 2018 from Capgemini and  LinkedIn, in collaboration with Efma, " Approximately 70% of top executives said that the top challenges are to collaborating with traditional financial firms because of their lack of agility, while traditional firms perceive it as a negative impact on their trust, brand and changing their culture as challenges.

These challenges will bring collaboration environment which effects is constrained for beneficiary attributes of either partner.