Banking automation systems are not sufficiently developed. This plays into the hands of fintech companies in the field of financial services
The global financial crisis of 2008 hit the banking industry and people’s trust in traditional financial institutions. At the same time, the fintech revolution began and there were companies that offered the market a new approach and services. Since then, banks gradually catch up with the fintech industry. However, bank automation systems are not yet sufficiently developed, so modern companies have an advantage.
Banking automation systems lag behind similar projects of companies in the field of financial technologies
Nowadays, users choose not traditional banks, but fintech companies, which offer more personalized service and advanced technology. Thus, the client has the opportunity to turn to different services that will cover the part of the financial needs of the person on which each of them specializes. The development of such firms has been continued since 2008, when the global economic system suffered a blow in the form of financial crisis. But since then, banks recovered from problems and began to return lost positions and trust of people. In fact, they copy the proposals of fintech, try to introduce new technologies and try to be more mobile. At the same time, banks now don’t make sense to get ahead of fintech. If such a goal were to be, it would be enough for them to simply engage in predatory pricing of their services in comparison with new companies. This is the advantage of banks and here fintech loses them. The modern company in the field of financial services remains to work with those clients that have not yet been taken away by banks.
But fintech also has its own strong point, which is automation of processes. Users are much more pleasant and convenient to solve their problems through the application or systems that use artificial intelligence will do it for them. In the coming years, it is the development of automation that will determine the winner in the fight between fintech companies and banks. The power is not equal here. Banking automation systems are not yet perfect, while similar projects at fintech show good results. They can make that a person in the future in principle does not have to take part in working with their finances. It is possible that the banks will be able to connect fintech companies and use their rich experience in decision-making and performance of tasks. In this case, the market will become more competitive, and the client will decide which services to use.