Innovation in the banking industry continues to be the key factor for financial institutions to survive in today’s digital era. According to recent statistics, 82% of financial organizations say they plan to partner with fintech companies within the next 3-5 years.
Here are just a few ways FinTech is shaping the Banking and Financial Services industry for the future:
The shift to more customer-centric models can be directly attributed to the increase in demand from the younger generations. These consumers want to have quick, efficient transactions done at the palm of their hands. FinTech companies have embraced this. According to PWC, only 53% of people believe that banks and financial institutions are customer-centric, while 80% say that FinTech companies are customer-centric. A recent study shows that 71% of millennials would rather go to the dentist than hear what their bank has to say.
Need for Experts in Fintech Industry
I’ve recently had experience with a couple of Financial Institutions looking for candidates with FinTech industry backgrounds. They’re looking for these candidates to bring their ideas and experience to the bank/credit union scene. Because let’s be honest, not a lot of folks understand the FinTech industry if they’ve been in the banking world for a while. As a result, there has been a huge shift in the need for FinTech skills.
I have helped three different institutions this year alone with their recruiting strategies and large projects aimed towards FinTech developments.
A need to adapt to change, quickly and effectively:
Banks and Credit Unions have been slower to make the change to a more digital-centric model. There are a few reasons why this is the case. The silos within banks and credit unions make it difficult to pivot and adapt to changes in the market. Additionally, it’s challenging to make changes due to the legacy systems they’ve built up over the years. Introducing a new platform or changing systems causes a significant shift. These profound changes and products can directly affect the customers and members of the institution.
One of the financial institutions I helped with FinTech projects had a three-year timeline to switch over to their new FinTech platform. This required an immense amount of strategy planning, technology design, regulatory compliance checks, and other maintenance work for their IT teams. These timelines must be drastically reduced in order to keep up with the ever-changing world we’re in today.
If you’re looking for a FinTech professional to take your initiatives to the next level, let’s have a conversation!