Why Fintech Is In Desperate Need Of Banking

Posted by James Hawk on July 25th, 2017

Why Fintech Is In Desperate Need Of Banking

The banking sector is a very risky part of the global economy. With so many ATM and card hacks, reminds of how underdeveloped the banking technology is in our banking system. Lack of innovation has made this part of our economy almost as slow as a turtle.

You won't believe that some banks in Asia take about a day to make an online transaction. That's scary, right? What is even more horrifying is that there are still some banks in particular countries that have analog registers to maintain the accounting records.       

Mobile banking and mobile payment operations are a significant contributor to this equation.  The good news is that there has been a lot of progression with physical banks. With the mobile payment systems, customers don't need to go to a bank counter to transfer an amount or query for a statement.

Apart from that, there are still some major drawbacks in the banking system like lack of infrastructure and efficient cloud service. This lacking prompted a few fin-tech (Financial Technology) companies to fill the gaps by creating Infrastructure as a Service (IaaS) and RegTec. Trulioo is one of the major companies  in that service area. They are making Individual Gov. Databases all around the world which is accessible through a single streamlined online interface. Another major company is Flutterwave. The company is developing banking and payment interfaces to power fin-tech offerings in Nigeria. These are some upgrades that the banking system desperately needs now.

Besides, all users don't have access to advanced medium for their online banking transactions. Most of them rely on their tiny smartphones to access the internet which is not sufficient to get all your jobs done. Some of them don't even use any digital platform. For them, mobile banking isn't going to pay off very well.

What I'm talking about is upgraded and secured mobile payment systems, check deposit via photographs, biometric security, etc. I know that a few banks are willing to offer the fin-tech companies anything to modernize their system, hoping that new customers will emerge from the advancement of their system. But the number is negligible. Whether the other banks don't realize the crying need or they don't want to invest a lot of money in the system and infrastructure enhancement, they will understand that they have been completely wrong about this. But by that time, it'll be too late. Either other banks will take away the customers or the banking sector will fall terribly. So, it's time they realize about advancement in their technology. Once the banks are willing to invest, it won't take time for the fin-tech companies to get in contact with them. A proper partnership with a small fin-tech firm can give the banks a cutting edge on what they need in an increasingly mobile market.

Charles K Carillo