Fintechs companies have brought a wave of insecurity among conventional bankers. Fintech companies introduced dynamic payment systems that empowered their users to complete their financial transactions without the involvement of a middleman and limiting transaction charges applied on them by traditional banks. Fintechs have increased the speed of transactions. Technology has helped fintech organizations in improving transparency of transactions in their payment systems which led to improved user interaction and experience.
Conventional Banks have set financial services such as ATMs and online banking, their innovation skills are reliable. Building their services like the fintech companies can significantly help traditional banks in avoiding risks posed by fintechs. Developing & implementing similar services could be challenging but could yield ample benefits in the long run for traditional banks.
Threat of Fintech to banks is real and banks have to start searching for viable options for working in the market alongside fintechs. Banks can think of partnering with fintech companies, acquire or develop a fintech portal that can create a digital value of banks.
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