After the collaboration of the financial technology with the banking and financial sector, ‘digital’ is the buzzword in the financial industry. The fintech is affecting not just the infrastructure and working system of the banks and financial institutions but it is also affected the money. With the financial technology, the value of the money has also seen some transformations. The cost of exchanges on the financial transactions has been reduced, the incumbents are being threatened, the mode of payment has changed, and everything goes online now.
The heads and managers of the banks are focusing on the digitization of the infrastructure by collaborating with the fintech industry. Yet there are some other fundamental queries that need clarification. The world has seen the reaction of the people towards the innovations of the fintech and how the fintech is reacting towards the support. What about the level of acceptance of the fintech in every field in the global economy? Is the fintech equally accepted amongst all the banks? What is the reaction of the individual banking and financial institutions towards the involvement of the fintech industry? The financial system has been regulated since ages and has also stood upon the test of time, and then what is the need of the fintech industry now? These are some of the major questions that are the centre of attention of many people in the world.
Before the introduction of the fintech industry, the banking system used to work upon the product oriented basis. And it was the main reason by which the financial institutions make money. And with the involvement of the fintech industry, the banking sectors have become much more client oriented. They are offering new schemes every now and then to attract customers and to stay in the competition. Isn’t the introduction of the fintech industry have caused a damage to the importance of the financial and banking system?
The invasion of the fintech industry has the capability to change the landscape of the banking sector all over the world. The banking institutions that are not capable of providing the digital banking services and support to the customers are foreseeing the closure. Is fintech really being collaborative or is it just the beginning for the disruption of the old established financial system? The domestic banks are also taking keen interest in the collaboration of the fintech to extend their reach. With the help of various nationwide schemes, the population that are financial unaware and unsecured in the country are brought upon a common digital platform. These people are also embracing the technological development of the fintech industry.
With the digitization and automation of the financial system, the country will be facing some of the greatest changes. The fintech collaboration has targeted the main challenge of payment, and the solution is found through the business-to-business (B2B) method. Sooner in the future, customer-to-customer payment method and unified payment interface or cashless transactions will also begin. The fintech has affected the conventional banking system but it has also provided the strength to it.