How does FinTech add value to banks in 2021?

Posted On Wed, June 30, 2021, 4:27 PM
FinTech helping banks

FinTech, the abbreviation for finance technology, refers to the innovation and development in modes of transaction or anything related to finance. Be it the integration of internet-based payment systems with banks such as UPI, internet banking facilities, etc., or the seamless credit-taking facilities. All of these are merely the tip of an iceberg called FinTech.

FinTech start-ups have witnessed an exponential growth in their customer base with the advent of fast and widespread internet. People adapting to new payment methods show a significant increase in digital literacy and awareness among the masses.

FinTech helping banks:

  • FinTech companies like Money View, Money Tap, Kreditbee, Dhani, Fullerton strengthen banks and other financial institutions by increasing the customer base as well as profits in books. The wide range of services and facilities of these FinTech companies integrated with years old trust of the banks is the perfect recipe for luring big businesses and big customer base. This provides the banks with customers of both the type, quality as well as quantity.

  • FinTech companies help the banks and financial institutions increase their customer retention rate and help choose better customers for the risk-infused schemes with sumptuous returns. Also, the presence of data enrichment tools with FinTech companies makes the task times easier for banks.

  • FinTech firms have also been seen to enable banks to be capable of making their loan portfolios more diverse. This enhances the banks to be more specific with customers personally. This makes banks offer more personalized schemes to the customers who are more suited to their needs and wants.

  • By the integration of FinTech companies with banks, facilities such as credit card and debit card transactions have become rampant. Also, money transfer methods such as money transfer by internet banking, processing of loans have also become significantly faster. Security has also increased manifold under the collaboration of FinTech with banks.

  • FinTech also provides these financial institutes a keen look into the ways where their customers invest their money. This helps these institutions tailor more of a personalized investment plan for different customers, which makes the customer give their business to the bank only. This, in turn, proves the mettle of data enrichment that FinTech firms have to offer.

Advantages of FinTech companies:

  • Faster approval and processing: With the advent of FinTech, the processing of loans, insurance, and other similar activities has become times faster. The presence of technological associations has seamlessly eased the authentication process. All the processes can now be completed online without physically going to the office, such as registration, id verification, etc. In some cases, it has even been seen that the whole of the process is completed within 24 hours.

  • Convenience: Another great aspect of the introduction of FinTech companies is that they have shifted all of the processes related to it online. With the advent of this, now, the works which required visiting offices and standing in lines all day long are completely eliminated. Now any given process can be completed from the comfort of home.

  • Tailored services: FinTech companies are more likely to provide personalized services and schemes to their customers, which are bound to tempt them into buying. They offer loans at comparatively lower interest rates. They can afford to do so because all is done by a mere application and not by a team of experts crunching numbers. This reduces a lot of expense which can later be utilized for providing customers with schemes at significantly low-interest rates. Also, with the data enrichment tool, FinTech applications can find person-specific schemes which have higher chances of customers buying them.

  • High security: With the ever-increasing customer base, it is crucial to have the entire data safe at a place. With advanced security encryptions, FinTech takes care of that. The crucial data of customers such as ID proof, bank account details etc., everything is safe. FinTech uses state-of-the-art security measures. So, security is not an aspect to worry about.

  • Support services: It is the backbone of any company. The company which does not care for its customer ceases to exist at all. Most of the FinTech companies have 24X7 support services available for addressing the queries and resolving the issues of the customers. 

Conclusion:

On reflecting on the facts and details mentioned above, we come to realize the sheer importance and advantages of FinTech integration in the industry. Not only it has eased the previously present difficulties but has also paved the way for improvement in different aspects.

Read More- Personal Loans from Private Finance

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Contact Information:
Saahil
reddysaahil@gmail.com

This press release is posted under categories Banking, Private Sector, India, Business, Marketing, Finance, Insurance

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