Hi, I’m so glad to see you all here again. For the DV Blog fans who have been following us, you may be familiar with FinTech and know that “Startups” are friends with “Disrupt” or with the change that will alter existing processes.
You may not be ready but technology is already knocking at your front door. I wish to emphasize again on the advantages of being “the first”. Don’t fear new things, just learn to embrace it and technology can surely be beneficial.
Today, I will show you the bright side of an analysis on when banks open doors to FinTech and how this can help the financial industry.
This is my summary that was extracted from the PwC’s Global FinTech Survey 2017.
Digitalization saves money and provides convenience.
Do you know how much money is put into documentation, printing banknotes, and logistics? Today, technology has developed supreme security with innovations such as Blockchains that can safely embed everything into Cloud (Read more here). With digitalization, aside from savings from eliminating all the paper and logistics cost, storing data becomes very efficient with more free space and, better yet, eco-friendliness.
Customers enjoy new and targeted solutions.
In the past, finance is viewed as difficult, complex, and always handled with doubts. Specialists are required as access to information and trying to understand them is time-consuming. However, today, several FinTech have stepped in to ease the complexity ex. if you need a loan but don’t know which one is the best, there are technologies that can analyze loans via new methodology where consumers can select the best option all by themselves. Moreover, peer-to-peer lending has also been introduced and this helps provide simpler loans for unstable income individuals.
There is a startup in Thailand under DVA or Digital Ventures Accelerator who is currently working on this matter. At present, they are working on the legal processes so that they can officially launch the service (get to know Financial Inclusion here). If financial institutions seek ways to collaborate with startups, it will unlock new services that can solve problems that banks were unable to address. However, although it may not immediately affect banks, in the future, there is a high possibility that loans from financial institutions will decrease if peer-to-peer lending provides better outcomes.
Consumers have more options and can easily access information.
Online transactions by small players have signaled banks to promptly embrace these systems. The use of existing structures or developing new ones have provided SME and other clients the chance to maintain transactions with the same banks. Moreover, promotions from banks also need to adjust because FinTech can now help compare the pros and cons of each promotion like the service from Refinn where users can compare refinancing options. Banks need to be mindful of the situation while consumers can just sit back and enjoy the various selections.
Nevertheless, as consumers, we must constantly follow tech news and information so we can remain up-to-date and never miss an opportunity when technology happens to disrupt an industry. Also, entrepreneurs shall always capture prospects to improve businesses. Feel free to browse and get insights on the latest FinTech updates, here, at the Digital Ventures blog or catch up with me through my social media channels. See you again next time.
Thank you for the images from PeerPower