2020 has been challenging, to say the least. Due to the global pandemic, we are all facing, consumers, households and businesses alike have been forced to shop differently. This has left traditional banking systems under great pressure, having to meet the needs of today’s tech-savvy customers as well as anticipate the rapid changes in tomorrow’s financial market.
According to the research published by deVere Group, the pandemic has caused a colossal rise of 72% in the use of FinTech apps in Europe, and this rise is naturally expected to continue at an even more accelerated rate in the coming year.
The landscape of FinTech is changing at a lightning speed, transforming everything related to money, from payments to banking. With people still confined to their homes, demand for physical establishments and businesses has plummeted. Largely thanks to the significant improvements made in AI, biometrics, open banking, and cybersecurity, digital banking is more convenient than ever, with consumers now able to access a wide range of personal financial information and execute important everyday tasks with just a few taps of their smartphones.
Today we are living in a world where resilient business through contactless interactions is key to stay on top of your competitors. Consumers, small businesses, and enterprises require financial solutions that address their needs in real-time. For this, banks must consider collaborating with fintech companies as well as seeking out cloud-based solutions by rebuilding their organizations around how to provide flexible solutions. This is to ensure more secure as well as practical digital experiences for consumers, ultimately resulting in a better user experience.
According to a McKinsey survey, banks that use technology to transform customer experience have increased customer satisfaction by 15 to 20%, reducing the cost to serve by 20 to 40%, and boosting conversion rates and growth by 20%.
Today’s digital consumer wants a level of personalization, seamless integration, and simplicity that was almost impossible to even apprehend in the past.
Organizations must look at the needs of the digital consumer and why they often lack to deliver digital functionality that is both simple and fast.
Taking into consideration the extent and speed of innovation required, financial institutions must be willing and ready to look outside the organization for partnerships that can support the often expensive innovation process. The survival of most financial institutions will be determined by the willingness to let go of the past and embrace the unavoidable digital future of the finance sector. As we move into the year 2021, we can expect the growth of the fintech industry to continue at an even more rapid speed, resulting ultimately in better transparency, faster transaction processing, improved user experience, and increased availability of customer intelligence, which will ultimately allow to better anticipate the customers’ needs. All in all, the demand for fintech solutions has never been higher—making 2021 a crucial year for the evolution of this expanding industry.
