The banking sector has many changes and innovations over the years. None has been as effective as fintech stated Bahaa Abdul Hussein. The use of technology has revolutionized the way the banking sector operated. Not only has it helped customers, but it has ensured bank improve their customer base and operate more efficiently.
Fintech in banking
Fintech refers to the use of technology in the world of finance. Banks were among the first to use technology when they started offering ATMs for customers. Soon the use of computers helped banks automate their operations. The growth of technology saw online banking become popular. Today mobile banking is the trend with people using mobile apps to access their bank accounts and avail banking services.
The following explain how fintech has helped traditional banks innovate and offer value to customers.
- Online and mobile banking allow customers to access their bank accounts at anytime and anywhere.
- Mobile payments allows customers to go cashless and use their mobile phones to make payments. Transactions are secure and instantaneous ensuring convenience.
- The use of blockchain technology has helped enhance security. Transactions can be carried out more securely without any risks.
- The use of Artificial Intelligence along with Machine Learning has helped banks handle data effectively. It helps them easily spot fraudulent activities and thus helps in preventing security issues. Data analysis for decision making has become easier thanks to AI and ML.
- Customers can get a better experience from banks whether at the branch or at their homes. Banks are able to offer personalized services with products that meet the specific needs of customers.
- Technology has helped banks be more transparent in their operations. They are able to manage their regulatory and legal compliances effectively.
- Technology has led to multiple benefits for banks by helping them operate more efficiently. Automation has allowed banks to free their employees from routine tasks and focus on value-addition. Improved efficiency has led to better profitability.
- Fintech has helped banks be more financially inclusive. They have now been able to reach out to more people including those who otherwise could not access banking services.
Conclusion
Fintech has revolutionized banking and has brought bank to the homes of people. The use of mobile apps has allowed people to have their bank in their pockets. The ease of use and convenience fintech offers has helped banks expand its operations. Banks are now able to reach out to more people while improving their operational efficiency.
The blog has been authored by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit www.fintekdiary.com
