Fintech is playing an important role in revolutionizing banking procedures. The technological advancements in the banking industry are introducing new ways of managing the accounts, transaction records, and customer database. Fintech and banking industries are now collaborating to provide customers more services by accelerating a better user experience. Continue reading to learn about the role of fin-tech in changing the banking industry.
The Role of Fin-tech in Changing the Banking Industry
Following are the ways in which Fintech is changing the banking industry;
The fintech industry provides banks real-time payment services. This helps customers to get updated with their transactions and account balancing right after they make any transaction or transfer money. The notifications are sent to the customers in real-time which reduces the confusion and tough time for customers when huge transactions are placed.
The online identity verification process has made real-time payments easy for both the customers and banks. In real-time, a person is identified, and his request is approved to make a transaction or transfer money.
Artificial Intelligence (AI) is helping the banking industry automate their system. It efficiently handles all the banking processes and provides customers the best payment schedules. Customers are expedited with new products and improving the previous technologies while replacing them with new ones.
AI helps banking system automate their query system. The query system is trained on pre-gathered data set and testing is also done on a large number of data. The queries of customers are then handled by that automated tool through which banks do not need to hire a large staff and AI-powered tool is doing that job on its own.
Also read, 10 Jobs that will be Soon Replaced by AI
Fintech industries help banks share their data with other financial institutions to provide their customers with a better lookup over their accounts which makes it easy for them to manage their money fitly. These help customers have a better idea to make more money by investing them in the right place. In large data present in a centralized database, AML screening and KYC checks are performed. Therefore, whenever any identity is supposed to be verified, the database is checked if any previous record is present and send feedback to the banks.
The fintech industry has introduced open banking to facilitate customers and banks both. Customers now can see their accounts information at one place which would help them manage their money efficiently. On the other side, it helps banks share their data with other banks in order to perform all KYC and AML checks. There are many other use-cases in which open banking facilitates intermediaries and banks.
In branchless banking, customers do not need to open an account or visit any bank branch to pay utility bills or perform any money transfer or transaction. Also, it can be done anytime anywhere. This helps banks increase customer traffic and balance. Today, almost all banks are providing branchless banking facility to the end-users. These users might include the ones who have not yet opened any bank account and the ones who did. The fintech industry is facilitating both the banks and customers by providing them branchless banking.