As Featured on Forbes.com
Much has been said and written about the impending doom of banking, as customers begin to flock over to Fintech products and services. However, the claim that Fintech will kill banking is still an overstatement. Banking, as we know it, is changing because of Fintech, but it would take a major event of cataclysmic proportions to do away with banking institutions.
That said, the disruption of the financial services industry is real. Until very recently, banks had an uninterrupted monopoly over banking, financial, commercial, loans and investments. Not anymore. Gone are the days when people are comfortable dealing with just a single entity for all their financial needs. People simply aren’t happy with how their banks treat them and have become increasingly receptive to new solutions.
Banks have had a hard time to win back customer trust even if it’s been nearly ten years since the rumpus that was the 2008 financial crisis. This is even partly the reason why Fintech is able to enter the picture and offer services that poached users away from banks. As banks got stuck firefighting the crisis and dealing with regulation, tech was able to focus on innovation and launch products and services that became integral to people’s lives. Smartphones are arguably more valued by people over their wallets.