In order to improve the quality of payment services, Fintech applications are making use of their advanced technological capabilities. This platform has managed to attract a large customer base because of their openness. There are a number of advantages to using Fintech rather than just low-cost solutions.
Banks and Fintech firms like regtech may work together to enable quick payments through wallets, payment applications or online banking. Fintech’s flexibility, speed, and cost-effectiveness may be attributed to its use of cutting-edge technology.
In order to attract consumers, FinTech is able to offer lower prices due to their virtual operations and lack of regulation as a deposit institution or venture capital funding.
Reasons:
Convenient factor-
As a result of using this digital factory of tools, banks are able to provide more convenient purchasing choices to customers via their buy-now-pay-later plan. Covid-19 brought the international economy to a standstill, making it more difficult for individuals to meet their fundamental needs. The buy-now-pay-later (BNPL) option has helped many overcome their financial troubles.
Consumer’s trust
Fintech apps or regtech are helping banks in a variety of ways, including developing consumer trust and transparency and establishing a large client base, all of which help banks. A total of 30% of RBL’s total 2.8 million clients have been acquired via partnerships with more than 90 startups in countries like India and the UK. which has partnered with FinTech and gained 20% of its client base as a result.
Smart-phone apps-
When it comes to technology, the global population is quickly adjusting to new innovations. As a result, consumers are increasingly relying on their mobile phones for practically all of their financial transactions and banking needs.
Thus, the concept of “super apps” or “all-in-one apps” came into being as a consequence. With the rise of Fintech, banks are working together to create a “Super App,” which would enable clients to access all of their financial information on a single platform.
A single app will be used for everything from talking to gaming to news to purchases and transactions. All of a consumer’s digital demands will be met by this Omnichannel software. As a result of this innovative strategy, which developed in China, banks are able to better understand their clients’ needs and supply them with financial solutions.
A new kind of apps called “Super Apps” is on the rise in India, and they’re going to have a major impact on the banking sector.
