Fintech is a booming industry that combines technology to aid and further financial services to help businesses and individuals manage their financing. Traditional banks are centralized and have more trust of the public when it comes to financing. Therefore, there are many clear differences between the two. So, why should your business choose a newer element of finance help than the traditional one? Here's why.
Fintechs are considered banks’ biggest competitors because of a reason, their digitally adapted systems are easier to use and more convenient for this rapidly evolving world. The advent of digital banking has not only revolutionized the way financing is done, it has also made money exchange easier and fluid for businesses and individuals.
Traditional banks are run on personal bankers, banking systems, and the age old conduction of all financing. While it is trustworthy from an overall perspective, it can still be filled with human errors and faults. The very advancement of technology has evolved the way financial institutions work. According to Statista, by 2019, 75% of global consumers started using some form of money transfer or payment service by fintech companies. The technological efficiency is wholly reliable.
Fintech companies and startups don’t have to abide by strict regulations set for banks. This makes it easier for fintech startups to create their own credit line periods and set their own dates to help businesses and individuals use the credit they require to expand. Traditional banks have regulated bodies and authorities that require them to abide by legal requirements, restrictions, and guidelines, which means they can’t always provide credit or loans to all businesses. There is that flexible option with fintech startups!
The flexible nature of fintech regulations might make the industry riskier, but it offers faster, less expensive, more innovative, and a better customer servicing experience. The benefits far outweigh the risks, and make it the calculated best option for your business. The high user-friendly experience is definitely worth choosing over the confusion with traditional banks!
The pandemic forced digital transformation in many sectors, it made sure every industry is running digitally and efficiently. The endless possibilities of sourcing services from fintech startups ensures long term sustainability in terms of business growth potential.
Therefore, choosing a fintech company for your financial services is wiser than choosing a traditional bank to do the same, because it will help your long term growth, and be a more viable choice for your business!