FinTech refers to ‘Financial Technology’ meaning it is an innovative approach to transforming financial institutions using digital technology solutions. With FinTech solutions, Banks, Stock exchanges, Hedge funds & all the other financial institutions can get a cutting edge advantage
Before moving on to understanding the advantages of FinTech innovations, let’s take a look at the industry growth.
Right now, four out of ten financial decision-makers in the US have one or more accounts on a FinTech platform. The TAM (Total addressable market) is estimated to grow up to $730 Billion by 2030 with a CAGR of above 25%.
Let’s see the advantages of implementing FinTech solutions for a financial institution:
1. Zero barrier applications and faster approvals
Remember the time when it took a week or even longer to open a personal bank account. Well, it is now long gone. With FinTech solutions, users can easily submit their applications to open an account.
This results in more and more users opting for institutions that have FinTech implemented for their financial operations.
2. Higher efficiency
Throughout any industry, technology is a de-facto catalyst agent for increasing efficiency in operations. FinTech is no exception.
Financial institutions gain efficiency in the processes through automation and customised implementation of FinTech as per the demand and nature of the business operations.
3. Automated customer service
The convergence of Artificial Intelligence with FinTech is opening doorways to a plethora of automated customer service options. Smart chatbots, Virtual assistants and advisors, Personalised UI are a few of hundreds of ways for automated customer servicing.
These kinds of automation reduce costs for financial institutions. It also delivers a far better customer service experience to users resulting in higher retention rates.
4. Highly regulated and risk-averse
Although FinTech is relatively new, it is highly regulated to ensure robust governance and proper risk management. This is also something to take care of while choosing a FinTech software solutions partner for your financial institution.
Make sure you choose a partner who has the required certifications and merits to develop a robust FinTech solution for your financial institution.
5. No compromise on security
Security is unarguably the most important factor for any financial institution. The most common reason for not adapting FinTech for financial institutions is the hesitation about security.
If your FinTech software partners enforce the latest security measures for your FinTech software then there’s no reason to worry. For context, MSBC Group implements industry best practices to ensure the highest level of security for our clients and we also always keep it up-to-date with the latest technological advances and developments for information security. This leaves no loopholes or voids for any kind of security breach.
With the rise of new and innovative technologies, as well as a global financial scene that is experiencing great change, it's becoming apparent that Financial Services firms now have a lot more to offer than just traditional banking services.
FinTech makes operations and processes easier and faster for financial institutions. Simultaneously, it also delivers a very convenient experience to the users. Due to this, adapting the FinTech solution for your financial institution is going to be a win-win and will take you to new business heights.
If you are looking for a partner with over a decade of experience and 360-degree expertise in FinTech, do check out our FinTech software development services.
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