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How Fintech Is Rattling Traditional Banking
For a time being, consumers have accepted the lack of technology found at traditional banks. But with fintech on the ridge, banks are toiling to keep up and offer customers the innovation they crave. Disruptive fintech has caused traditional banks a major headache. Gradually financial technology is transforming the financial landscape rapidly changing the ways that financial services are provided to businesses and consumers.
| Regulations | |
|---|---|
| Traditional Banking | Traditional Banking |
| Customer Relationship | |
| Customer can have face to face contacts with the banking system. | Customers can only have electronic contacts. |
| Consumers to be physically present to open an account or for other services | Elegant and Easy way as Consumer doesn’t need to physically be present to transact and can register on their computers or through phones |
| Technology | |
| The risks in traditional banks are far less due to more rigid regulations. | Digital banks are built on technologies like machine learning, artificial intelligence and mechanisation function which are much faster. |
| Traditional banking systems are usually decades old to support the bank’s operations. | Using technology that guides the rarer mistakes, higher quality service, and faster service in a shorter amount of time. |
| Risks | |
| The risks in traditional banks are far less due to more rigid regulations. | There is no doubt that in Digital banking the percentage of risk is higher than the traditional banking. But consumers still use it because it delivers a faster, less pricey and highly user-friendly experience |
| Popularity | |
| Traditional banks are losing significance because of their old style of banking. | Fintech banking is making financial services more streamlined and convenient. |
| The old banking systems that still follow primitive banking methods are becoming obsolete with reduced popularity among customers. | Through the use of technology, users can take advantage of automation to speed up processes that previously a human would have managed. |
| Regulation | |
| Traditional banks are regulated by national or central banks. | Fintech is more lenient and flexible as they don’t have one particular regulator. |
| The regulating bodies need banks to stick to legal requirements, restrictions, and guidelines that are put in place to defend their people’s money. | Without strict regulation, these companies can make difference to their business and do what they want without strict guidelines. |
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