Fintech companies are on the verge of a new round of development
Times change, technologies evolve, and with them the services markets and the approach to customer service are transformed. If it was necessary to go to rent and take there a disk or cassette before watching a movie, modern online services like Netflix offer a wide library of movies and series and access to them in a couple of clicks. Fintech companies in the financial and banking sectors work in the similar way. Now the client has the opportunity to use the services of not one bank, but to choose from an extensive list of companies offering either a complex set of services or their limited but proven range. These companies are developing so rapidly that in the near future a person will be able to invest and manage their funds only thanks to the smartphone and application.
Fintech companies and banks: what to expect from the main players of the financial market
Experts believe that a full-fledged fintech-revolution is not far off, as in addition to the youth, which is more open to the use of new services, the readiness to interact with them showed and mature audience. In America, Robinhood and Acorns offer the opportunity to invest without bureaucracy, which is especially important for the millennials generation. Its representatives grew up in times of the decline of the global financial sector that led to a loss of confidence in it. Past studies have shown that in 2013, only one in three millennials of the United States had an investment portfolio with a minimum set of shares. Now this indicator shows positive dynamics of growth. Recent survey results indicate that about 40% of people under 35 years of age have already tried to invest in assets. The format of work and comfortable conditions offered by fintech startups can increase this number.
At the same time, traditional banks try to keep up with financial and technological companies. They understand that they do not manage to develop and lose customers, and therefore invest in promising startups of the market. All this is done in order not to repeat the fate of film rental services. For example, one of the largest American banks JP Morgan has launched Finn mobile bank account service, and the Canvas platform of Citi Bank allows customers to create new products and services. Bank branches are also be expected to be closed. In return, people will receive new digital services, using which it will be possible to do everything the same as in the offices, but without going to them. In turn, fintech startups will focus on a limited number of services, but in the maximum possible number of places. This means that soon people will be able to choose financial services the same way they are now choosing movies at Netflix, taking into account their tastes and not adjusting to the location of fintech companies.