A couple of decades ago, the finance sector was unofficially monopolised by the banks. The recent rise of Fintech companies has moved this monopoly and transformed the whole sector into being fairer and more heterogeneous. Here, we will cover the reasons for this Fintech success.
With the rise of Fintech companies, the offer in products and services increased, making it a more accessible market. Previously, it wasn’t possible to make an impact in the finance industry without working with some of the larger banks which dominated the market. While big banks are still very influential, today it is possible to offer alternative services to customers. Even start-ups have been able to make a mark in the industry – something that was previously unheard of.
Lower fees, no commitment contracts and other benefits made the conditions easier for Fintech companies to reach customers. More and more Fintech businesses emerged in the market, making the way for others and lowering fees as well as enabling new services, products and technologies to emerge.
Users become the centre
Users are now more at the centre of a service than previously. By tailoring products and services to the demands that customers have today, Fintech companies are able to strive and become very successful. Putting customers first and reaching them in ways banks traditionally weren’t able to, opened the market and made a way for new technologies.
Importance of gaining customer trust
There is a new focus on the importance of gaining customer trust. Previously, there were few options available, and customers had limited choices. Today, Fintech is providing a new way and enabling customers to experience new payment solutions. Fintech are also making it easier to access financial services and banking such as alternative current accounts and instant accounts that don’t require a proof of address, credit checks and extra documents to join.
The experience of banking has changed since Fintech companies have entered the market and many customers trust that their interests are being met through the services they choose.
Fintech took advantage of easier ways of entering into the market online and working with cutting edge technologies. As Fintech is becoming more established, they will gain more influence in the banking industry. How this will change current financial systems is not yet clear, but experts are expecting significant changes within the next few years and decades. Some even think that the way we make payments and transfer money will change drastically. The use of tech to improve services was a genius way for small businesses and start-ups to enter a market that is known to be highly competitive.