Fintech vs traditional banking

Is brand loyalty gone?

Synergy between finance and technology appears to be the future. The banking system has held on to its traditional banking system and outdated ideology that bankers are loyal and unlikely to leave, resulting in a banking system that didn’t feel a need to invest much time in tailing its products.  Today’s generation, however, does not feel obligated to continually show brand loyalty, and the advent of new technology has changed this. In today’s digital age, younger demographics are more likely to change banks if service does not meet their needs and standards. Today Gen z in particular favors services that offer flexibility, transparency, innovation, and efficiency. 

Bringing finance and technology together

Since the implementation of online banking obtaining money has become a swift transaction that can be done online. It may be beneficial for banks to implement technological solutions that eliminate time-consuming activities such as filling out lengthy forms and the need for bank cards. Banking innovation, however, has the potential to transform the way we participate in exchanges of financial transactions with regard to stock trade and offshore investments globally. Through the combination of financial services and technology, people and businesses can manage their payments and finances more efficiently, anywhere at any time.

GenZ Customer relations

Traditional banking systems may appear to lack the human element and connection required to foster trust, but technology does not eliminate these elements. By using algorithms, AI can gather information about a client’s likes, dislikes, and interests, allowing banks to build a more personalised approach to its customers. Companies that invest time in understanding their customers’ needs provide products and services that they are most likely to desire and purchase.

The use of innovative thinking eliminates the need for time-consuming qualitative research and mass marketing, thus reducing costs and gaining access to a database of useful personal information at the same time. The data protection and privacy act, however, cannot be bridged by this measure since most banks already hold a great deal of personal information about their clients. Rather, it focuses on gathering accurate data so that tailored products can be offered to clients. It is not uncommon for banks to contact us in an attempt to sell us products that we are not interested in or require. Imagine the possibilities if we were able to eliminate this outdated form of consumer marketing.

Further, technologies such as Go Pay, Apple Pay, and Blockchain, which use a digital fingerprint as a unique identifier, make it fast and easy to access funds and make purchases online or in stores across multiple consumer platforms.  As this information can be distributed and stored on a ledger and referenced by any bank in the network, it makes it convenient for someone to access funds at any time without the hassle of using a bank card.

Most generation Z individuals carry their phones rather than carry identification cards. Embracing technology and evolving with it is key to keeping up with the needs of a tech-savvy society. Since we live in a society that wants instant information and products without having to wait 24 hours for a problem to be resolved, efficiency is particularly important during this post-industrial era. Even though fintech threatens traditional banking, it would be foolish not to integrate finance and technology, as technology is rapidly expanding.