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The financial technology (fintech) revolution is quickly spreading worldwide, altering the global financial dynamics. It is influencing a wide range of industry activities such as customer service, financial advising, payments and transactions, loans, insurance services, and account administration.  

Legacy financial institutions like banks, credit unions, and large financial players are heralding this transformation by embracing ubiquitous Fintech-led innovations like digital payment gateways, online banking, etc., to reach at par with the fintech firms. The spectacular growth in the usage of smartphones has only catalyzed the adoption of digital tools for fintech platform solutions. These innovations are spearheading the need for traditional banking institutions to leverage fintech platforms to hone operational efficiencies and deliver improved customer services.  

Here are 5 ways in which fintech is transforming the banking and financial services landscape-  

Enhanced customer experience powered by omnichannel presence: Fintech platforms enable banks with powerful banking capabilities for better customer engagement across different channels and deliver a hyper-personalized experience, enhance customer value, and seamlessly transition to the digital age.    

API-led Integration: Banks can provide more value-added services to the customers by providing secure access to customers for third-party vendors by enabling API-led integration. Customers can now access all types of services provided by multiple vendors by just logging into a single bank portal.  

Digital handshake with cloud AI: Banks are offering a unique customer experience centered on personalization, speed, relevance, and seamless delivery, such as AI-enabled Chatbots to manage customer queries faster and save time. With RPA being applied, the KYC process is made much faster, and customer data can be analyzed and verified within moments with very little room for inaccuracies.    

Digital currencies using Blockchain technology: Customers have benefited from cryptocurrencies for moving money, lowering expenses, and saving time since blockchain provides a reliable trading platform with improved transparency.  

P2P(Peer-to-Peer) Investment/ Lending platforms: Through fintech platforms, it becomes easier for banks to find authenticated creditworthy borrowers through a pre-verified automated credit evaluation process without the intervention of conventional banking.