Breaking Barriers in Fintech Innovation in 2021

Break the barriers between Fintech and banks

Start-ups, such as fintech companies, are discovering innovative ways to provide better and cheaper services to customers. The fintech revolution is starting to gain market share from larger companies, including banks. While not all fintechs are successful in the long run, one thing is for sure: banks need to be integrated with it. It’s time to break the boundaries between them.

As the market evolves through digitalization, changes in customer behavior, a growing affinity for technology, and other interruptions or economic factors, industries are forced to adapt to these changes. They are supported by technologies like cloud and blockchain, which can bring your services to market at a lower cost. Fintechs often deviate from the regulatory framework with the innovative service they provide. This means that large companies are often unable to detect or exploit a growing trend or gap in the market, thus providing the market with adequate service. Therefore, they need to learn how to work with fintechs.

After the financial crisis, there was a wave of consolidation in the financial sector at all levels; large and small companies were acquired, merged, or closed. The resulting market has become more monopolistic, with less choice for customers. The crisis has worsened people’s confidence in financial institutions. On the contrary, people’s confidence in technology has increased. Thanks to smartphones and tablets, they are gaining more and more affinity with technology, which is increasingly affecting them in their daily lives. Fintechs leveraged this affinity to enter the market with innovative products focused on retail, insurance, or investment technologies.

Large financial institutions

They are not as mobile as fintech companies and have more time to enter the market because they respect the process, policies, and regulatory framework they have to comply with. Another important limiting factor is the complex IT platform that works in silos, which makes it difficult to develop well-integrated solutions in an agile way. Large companies often still have monolithic systems and fragmented solutions that limit the flexibility of the business due to the high cost of change – in terms of money, time and resources. In this era of cloud computing, the domain is changing to more focused and flexible fintechs. Not to be outdone, banks, insurance companies, and other large financial institutions are working on these fintechs.

“There are a number of legal requirements that you must consider before marketing a fintech product. If you live in the United States, it is an important first step to introduce your product to the applicable regulations to provide information. “‘If you are offering a product with electronic payment services, there are some important points to consider. It is important to ensure that your electronic payment system complies with the regulations. “

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