As recently as a decade ago, the finance sector was essentially monopolised by the banks. The banks held all of the financial power in the world and there was little anyone could really do about it. However, the recent rise of Fintech companies has moved the needle on the record and transformed the whole finance sector into something fairer and more holistic. Why is Fintech such a big deal in 2021 though?
In an environment heavily fraught with potential cyber threats and ever-increasing digitisation, it is particularly important to show transparency and commitment from companies that are dealing with our finances. Whereas traditional banks were always happy to operate behind the curtain and in the shadows, Fintech providers are significantly more open with their practices.
Matthew Sanders, CEO of prepaid card specialist Suits Me recently become a North West finalist at The Great British Entrepreneurs Awards. He said: “I am honoured to be recognised as one of the North West finalists at this year’s Great British Entrepreneur Awards. As a company, Suits Me constantly strive to ensure that we are able to provide the best service to our account holders.” It’s these types of recognition that will transmit extra trust for users and is the kind of thing you’d rarely hear from a major bank.
As they are up-and-coming companies without legacy systems in place, Fintechs are able to pivot on a dime and implement customer-focused changes incredibly quickly. This means that nine times out of ten, a Fintech is laser-focused in a way a brick and mortar bank can’t be. Indeed, user experience is at the front and centre of everything a Fintech does and if you value that experience, you might want to consider handing your old bank its walking papers.
Use of tech
Not only are they digitally native, which means they are more likely to offer a reliable digital service, but Fintech startups are on the cutting edge of technology. This same technology will undoubtedly be used to make the consumer experience better and bring prizes down.
As they are not tied into trading specifically as a bank, Fintechs can offer a much wider range of products and services. For example, what if you wanted to organise your mobile phone contract, bank account and all of your credit cards from one app? This is something you could potentially do via a Fintech.
With lower overheads due to Fintech businesses rarely operating brick and mortar establishments, opening an account with a Fintech is generally going to mean much lower fees. You’ll also rarely find the kind of contracts that tie you with a bank for years.
Of course, there are always going to be those that simply don’t trust Fintechs because they’re “new,” but if you’re willing to take a chance on them, we guarantee you won’t be crawling back to your old bank any time soon.