FinТech creates platforms for banks and disrupts them. It's very easy to transfer money into a different bank. However, it can become a nuisance when
FinТech creates platforms for banks and disrupts them. It’s very easy to transfer money into a different bank. However, it can become a nuisance when you have to start moving your apps. FinТech products have been increasingly popular in the wealth management, stock trading, remittance, loans, payments and insurance industries. This is mainly due to the big increase of venture investment from private fintech companies. Startups have always been responsible for disrupting specific services and facilities that banks provide. The success of all the startups combined can negatively affect the revenue opportunities of banks. This is because banks usually make the most money from investing their consumer’s money. One of the things that startup companies have in common is that they all require an already existing bank account from their consumers. It is the responsibility of the connecting bank to fund the accounts and receive the money. Incumbents have influenced consumers to connect their fintech products into their existing bank accounts.
According to some of fintech’s founders, this will result in a rapid change in banking. People will feel more reluctant to switch to a different bank from the ones they’re already accustomed to. In terms of credit cards and debit cards, Uber and Amazon e-products have made matters more complicated in switching to a different bank. It becomes a hassle for consumers since they would have to manually open their app and update all their account information one by one in each of them. In case of a lost credit card, most people usually tell their bank that they’ve accidentally damaged or destroyed it to avoid having to pay any extra fees. Fintech is following the same steps, using apps that will be directly connected to consumers’ bank accounts. In the future, the startups will surely try their best to expand to similar markets in the hopes of gaining more profits.