Fintech companies earn trust and credence from the people at large by offering flexible, safe and adaptable options, says Swapnil Aggarwal

Times have changed and technology has challenged the status quo of the financial sector. There has been a bombardment of mobile payment apps, online shopping, investments and mobile banking which has transformed the entire financial arena and its discipline. The banking system has been confronted by this growing impetus of fintech companies, which are spreading their roots in India. In order to avoid paper-based formalities and avail the ease of access through the internet, people are switching from banks to these fintech ventures.

Mobility has played a vital role in our financial revolution. In this fast-paced world, one needs all the information and services on their smartphones. Financial services traditionally needed infrastructural set-up (branches) and fixed assets to raise their entry for customer retention. While technology advancements now allow fintech start-ups to virtually operate and deliver complex financial solutions, the digital transformation coupled with mobility provide ease of excess to their clients who initially were forced to wait in long queues for making a deposit, requesting a cheque book or conduct trade. That’s where these fintech companies earn trust and credence from the people at large, giving flexible and adaptable options to their customers.

So how is fintech creating a disturbance in the banking sector? While fintech ventures open the door to choose between multiple schemes which are available in market, banks can only promote their own products, narrowing down your bouquet of understanding and choices.  Fintech not only offers numerous plans like mutual funds, pension plans or insurances, but with the help of various tools and artificial intelligence, draws a comparative analysis chart for the customer and that eventually aids him/her to choose the right plan/scheme for his/her financial goals.  

These fintech giants have incorporated online transactions and use of digital wallets, which eventually have  made our life trouble-free from those times where we would trade goats for wheat. Old-fashioned banking transactions have been losing their charm. Today these e-wallets allow anybody to transfer funds from any place on the planet to any person having a mobile phone. This provides a faster, cheaper and more reliable way to transact than the conventional banking system. Customers like to experiment with new methods offered by fintech sector, which aids them to track their payments, passbooks and account balance more transparently on their digital device. In recent years, we have also seen a rapid growth in blockchain and cryptocurrency, which has taken a toll on financial services by providing a swift infrastructure to transact.

Fintech players also empower customers with mobile applications which from time to time notify portfolio insights, tracking of goals and so on. This helps customers get information about their investments and holdings. The inheritance of mobile application embodies a platform which personalises each and every customer, and banks cannot deliver such specific attention. With all the statistics and data on one’s fingertips, the customer is always updated. Neo banks are a very refined example for the same. In this digital sphere, financial technology endeavours to help customers through support chat boxes, machine learning algorithms and biometric fraud analysis which attracts their confidence.

Fintech firms have also managed to tame security threats and frauds. They promote machine-learning through artificial intelligence which keeps a track of money laundering. The security software alerts the consumer about a fraudulent payment or any virus attack, thus keeping a check and balance of every transaction. Biometrics, facial recognition, iris scans and voice pattern add a layer to the security system which increases the bank’s authenticity and reliability. However, great care must be taken to ensure that each apparatus is hack-proof in the cyber world and fintech companies are prioritising this on a war footing.

(The writer is a wealth creator)