Looking Toward the 4th Industrial Revolution
While a new industrial revolution was already well on its way, the Covid-19 pandemic sped up the evolution of our society. A need for more remote services introduced advances in digitization. This created a need for new infrastructures in every industry, including the banking and financial fields. While banks still have to work with regulatory agencies, those agencies will be forced to loosen their restrictions to help banks compete with fintech companies. Fewer regulations will help traditional banks remain competitive as fintech changes how consumers manage their money.
Banks will also have to change. Rather than waiting to offer new services after competing financial institutions have already offered them, traditional banks will have to be at the forefront of innovation. By taking the risks of offering new technology-based services first, these institutions can gain a much-needed competitive edge. They will also be able to provide better service to their customers.
Fintech Isn’t the Enemy
While banks do compete with fintech companies, a forward-looking bank will instead reach out to those companies to form partnerships. By incorporating fintech products and services into your bank, you can offer more state-of-the-art services to your customers. Many tech-savvy consumers will look for fintech that interests them. By offering those innovations, you will encourage those consumers to conduct their finances with your institution.
It Will Take Work
Adding fintech services for your customers will still come at a cost, but you should look at this as an investment in the future of your bank. You’ll have to enhance your bank’s infrastructure to accommodate new technology.
You may also need to reorganize how you utilize personnel. Rather than assigning one or two people to perform specific tasks, your fintech-friendly bank will operate more efficiently through the use of teams. A team-based structure will promote a greater emphasis on customer satisfaction, while also helping team members to strengthen their expertise and develop new skills.