The digital revolution brings great disruption to the traditional banking and world’s retail financial institutions. Fintech competitors, who are real-time and low-cost, bring risks and threats to existing traditional banking. Because when compare to Fintech competitors, it is hard for traditional institutions to respond quickly to the changing in digital environment and customer expectations.
According to the article, some people believe that by 2020, the landscape is expected to be shaped strongly by both technology and non-traditional competitors. Retail banking will be automated, and people are more tend to welcome Fintech firms than traditional institutions. Since traditional institutions are more likely to handle cash transactions, they believe that there would be less cash transactions in the future.
I think although Fintech companies will become increasing popular in the future, traditional institutions are still greatly needed by customers. Technologies do bring changes to life, but they are hard to adopt and need great time for people to learn. I believe there will still be need in peer to peer transactions in the future and the trust and customer experiences the traditional institutions have built will remain. In addition, Fintech will also face regulatory problem.
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