Fintech revolution brings more disruption to wider banking sector
As I was recently quoted as saying, I believe, will that traditional banks will lag even further behind in terms of market share and customer experience due to the current public health situation.
The coronavirus outbreak has accelerated the trends that were already influencing business, which include the ever-increasing use of technology in everyday life.
Digitalisation and new technologies have driven the changes we’ve seen since the coronavirus pandemic broke out. This is reinforced by the skyrocketing demand for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more and more people are working remotely.
In addition, it is also highlighted by the increasing use of fintech apps, allowing users immediate, 24/7 access to, use and management of their money.
Indeed, looking back there’s a precedent for this current situation.
Banks and other traditional financial services providers were, in the main, caught unawares by the financial crash of 2008/09.
As they began to navigate the new regulatory landscape and enhanced customer expectations, business and tech developments were nowhere near the top of their priorities.
Subsequently, technology-driven challenger banks and fintech companies filled the gap left between what traditional banks were offering and what customers were now expecting, particularly in terms of customer experience.
The fintech companies offering mobile banking, savings and investment apps, as well as peer-to-peer lending, and other services, now have over 10 years’ development, experience and expertise over many traditional banks.
Therefore, with fintech becoming even more popular now with coronavirus-driven social distancing and quarantine, and as the heightened security and convenience of fintech apps becomes more prevalent, traditional banks will likely fall further behind in terms of market share and client experience.
The COVID-19 pandemic will bring further disruption to the wider banking sector as it acts as a vehicle for more people to seek fintech alternatives to access, manage, utilise, saving and investing their money across the globe.