Fintech is an industry that has always been a pioneer when it comes to technological innovation. It helped them to survive and thrive during a COVID-19 crisis because they were prepared for fully-remote operations with mobile applications, excellent web platforms, and other digital services that allow their clients to do almost everything without leaving their homes. What is the secret of fintech and what can be expected in the upcoming years?
If you are not using your bank’s mobile app, you probably waste a lot of time standing in lines and visiting on-site facilities. Since fintech started its digital transformation, all financial affairs could be easily resolved with online tools. Most of the bank clients do not need to visit their providers during the year. They can transfer money, apply for loans, and contact clerks conveniently with their smartphone, tablet, or laptop. And if there’s a need to meet up with the bank’s representative – they can book an appointment with an app and avoid unnecessary contact with people which is crucial during a pandemic.
Credit Agricole went one step further and used Booksy – a very popular app for scheduling hairdresser and beautician visits – to allow their clients to book meetings with their clerks. This proves that fintech is able to penetrate other sectors using unorthodox ideas.
What is particularly worth mentioning is the fact that fintech is one of the most open industries when it comes to introducing modern solutions. They are not afraid of educating their clients and giving them something new to learn – apparently, instead of scaring them off, they help them understand digitalization and invite them to other parts of their lives.
One of the innovations fintech embraces with courage is artificial intelligence. It can come in many shapes and forms – machine learning, voice bots and other advanced algorithms that can improve some operations and automate a lot of processes. In many situations, robots replace people as consultants, advisors, and client support.
Examples? Here you go:
In Poland, many well-known banks and financial institutions invest in innovation and introduce modern solutions for their clients. PKO BP, one of the biggest Polish banks recently started to develop the artificial intelligence department to research how it can be used to deliver even better services.
Santander bank released a customer support chatbot that helps its clients solve problematic cases. Since June 2020, it answered almost 10k questions during more than 2000 conversations. It was a great step to share this tool with clients when we are still not sure about the pandemic and how it will affect us in the near and far future.
Recently, ING created a robot that advises clients who want to invest their money. The algorithm can predict the levels of risks that can be accepted by a particular person and help them decide which investment funds are worth it.
The number of startups that open every year (or should we say – month!) around the world, especially in the US, is enormous. Not only banks but financial companies conquer the world of fintech and race each other to provide more innovative services available in our pockets. A few clicks and we can invest, transfer money, pay for online shopping and exchange currencies. They use the mentioned AI, machine learning, and other superb technologies, but first and foremost – they make our lives easier.
Convenient financial operations from any location that only require a smartphone? That’s why so many of them become unicorns – companies worth over one billion dollars. They often offer services similar to banks but without so many formalities and requirements. During a coronavirus pandemic, such brands were appreciated even more because they were accessible and easy-to-use even for the less tech-savvy consumers.
What can we expect from fintech in the future?
Right now, we can see that fintech revolutionized the digital market of innovation. This industry is always one step ahead of others. Probably it will still be that way, as banks and prominent startups have all the resources to expand in terms of technologies, solutions, and research.
Visa, one of the biggest debit and credit card merchant, decided to invest a lot in fintech businesses in 2020. They believe that such companies are going to be one of the crucial elements in the current economy. In January, they merged with Plaid – a network that allows clients to securely connect their bank accounts with financial management apps. This way, fintech companies will be able to offer their innovative services to customers who use such applications.
Collaboration between banks, fintech startups, and financial institutions is essential to provide a new quality of digital money services.
Why was fintech so well prepared when COVID-19 happened?
First of all, fintech was one of the rare industries that wanted to eliminate a need for face-to-face contact in their services. And they started to do that years before the pandemic. When the coronavirus outbroke, they just needed to adjust a few things instead of preparing new systems and developing apps in a hurry. Banks have offered online consultations and digital solutions for a couple of years now.
Actually, remote customer service was one of the main focuses of technological transformation. Not only because it was convenient for customers and saved their time. It was also beneficial for banks and companies themselves. They could save resources needed for on-site client support and with the introduction of chatbots and voice bots, savings became enormous. No need for hiring employees, renting offices, and expensive training, but the possibility to talk to thousands of clients at the same time is something that wasn’t achievable before.
Right now, other industries are inspired by fintech and implement similar solutions. Coronavirus boosted this process even more.
We admire fintech for being so open-minded and progressive. They can be a role model for many other sectors. And we can help them to digitize and transform their actions with robust software products.
Whether you represent a fintech company or any other industry, contact us. We develop modern web and mobile apps but also help with the implementation of innovative solutions like voice bots and artificial intelligence. Let’s see what we can do for you.