Is Fintech Making the World More Inclusive? How Can It Make Banks More Competitive?

Fintech Statistics 

• The Fintech market is likely to reach $309.98 billion at a CAGR of 24.8% through 2022 globally. – The Business Research Company
• A recent PwC survey of financial services companies worldwide indicates that 47% of the companies wanting to collaborate with other sectors for growth were likely to collaborate with a fintech firm.
• 1 in 2 Global adult population will have access to mobile banking in 2021.- Juniper Research
• By 2023, leveraging chatbots will save banks $7.3 billion globally. – Juniper Research

Financial inclusion, a drive to make banking and financial services accessible and affordable to everyone globally has been a buzzword for years. Technology-based financial services are banking the unbanked and making the basic financial operations accessible for everyone, mainly for the people who had no access to banks before.

The fast-growing young economies, like China and India, are adopting advanced FinTech solutions more than the mature markets, such as Japan and Australia. Most people are gaining access to a wide range of virtual financial services in Asia and at a faster rate than any other market in the world.

How can Fintech make the world more Inclusive?

According to Forbes, fintech holds the potential to drive financial inclusion, as it fills the needs of the unbanked in some parts of the world where the institutional or governmental support is not up to the mark.

The fact that Fintech can streamline traditionally lengthy processes is partially because it’s based on ones and zeros as compared to human opinions and skills. Some fintech platforms demonstrate elements of traditional advisors, and algorithms, whereas others enable users to navigate financially complex tasks seamlessly without any need for human interaction at all.

Fintech platforms are enabling consumers to avoid visiting the traditional bank branches for tasks like applying for a loan, etc. It is allowing the casual investors to peruse their options online or take assistance from bots for making decisions and are no longer required to meet financial experts.

Fintech is Revolutionizing the Financial Services Landscape

Fintech is revolutionizing the financial services world at an unprecedented pace, and Robo advisors are the perfect example of its growing impact. Robo-advisors are the —digital platforms that offer automated, algorithm-informed investment suggestions and financial planning advice, without human oversight. Many Fintechs on the other side are mobilizing to enable customers to stay afloat amid the financial turmoil driven by the pandemic.

What are the Key Enablers of Fintech?

Customer Demand – Today’s customers are more accustomed to services and solutions that are digital, mobile, interactive, personalized, and relevant to them.  

Barriers to Entry– Traditional banks find it difficult to instantly respond to the evolving needs of the customers due to inflexible legacy systems, risk-averse budgeting, and decision processes, and siloed channels.  

Technological Evolution– Technological advancements developments provide Fintechs with multiple opportunities to meet customer expectations by leveraging the latest technology.

How is Fintech the Road Forward for Traditional Banks? 

A key enabler of Fintech adoption is its capability to cater to unmet customer needs by quickly harnessing emerging digital technologies. Fintech platform runs on digital technologies to offer customers the added value that they seek in key areas of convenience, price, access, and choice, etc.

Traditional banks must collaborate with Fintechs to add the missing piece to their growth and relevance puzzle. Fintech is an opportunity for banks to leverage the best of both worlds. They can either collaborate in some capacity or leverage the Fintech platform to make their financial offerings better and more relevant for the end consumer.

Banks and financial institutions that are seeking a good Fintech platform to tap the expanding customer base with a growing preference for ease, convenience, price, and accessibility can explore opportunities with Arttha, a Unified Fintech Platform. Arttha is a unified fintech platform that has been enabling banks and financial institutions to translate their offerings profits by being more accessible to the customers.