Fintech’s Threat to Banks

Banks are beginning to feel the pressure placed on them by FinTech startups looking to disrupt the traditional method of banking. Companies are targeting the customer experience and building off the growing use of mobile banking and easy access to banking operations. Banks do have a large advantage when it comes to the infrastructure associated with payment transactions and the many risk and compliance standards. The capital and regulatory speculation makes it hard for startups to keep up with banks. Instead, it is recommended that the two (large banks and startups) utilize each other’s resources in a mutually beneficial manner. One example is the banks’ close relationships with sales representatives and local integrators, which can be leveraged by the FinTech industry to better understand a customer’s needs and find a new point of access for their products. In turn, banks can utilize the large amount of data they have access to in order to develop easy to use interfaces for their customers.

So often companies focus on overpowering their competition instead of sharing resources to get ahead together. I enjoyed how this article identified the threat that big banks are facing and turned it into a positive for both parties involved. Ido believe that is important for banks to recognize customers’ desires for mobile banking and other easy forms of money management. It is also important to recognize that these new forms of technology must be slowly integrated given the importance of security when it comes to these sorts of applications.

http://themarketmogul.com/banks-take-advantage-fintech/