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How Fintech Plays an Important Role in Banks After the Pandemic

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The COVID-19 pandemic has brought significant changes to our daily lives, pushing us towards a ‘new normal.’ This shift includes a preference for virtual interactions, digital shopping, and notably, digital banking.

Statistics from McKinsey reveal that the adoption of digital banking in both consumer and business sectors has leaped forward by about five years in just eight weeks during the pandemic.

Mike Mayo, a Wells Fargo Securities analyst, notes that this period has witnessed the most rapid advancement in digital banking in history.

Fintech, a blend of financial services and technology, has played a crucial role in boosting digital banking services, experiencing robust growth as highlighted in a report by the World Bank.

However, amid this digital shift, there has been a decline in overall customer satisfaction with the transition to online banking, as indicated by a 2020 J.D. Power study.

Banks need to integrate fintech in a customer-friendly manner post-pandemic to ensure customer satisfaction remains unaffected.

Enhancing Customer Experience Through Fintech:

1. Virtual Voice Assistants:

Artificial intelligence-driven virtual assistants enable round-the-clock customer service, assisting with various banking tasks seamlessly.
Integrating virtual voice assistants can further streamline customer interactions, making services more efficient and accessible.

2. Financial Insights and Management:

Banks can utilize fintech tools to provide customers with a comprehensive view of their finances, aiding in budgeting, tracking spending patterns, and enhancing financial decision-making.

3. Fraud Prevention:

Artificial intelligence technologies can bolster security measures by identifying and flagging suspicious activities promptly, safeguarding customer accounts from potential fraud attempts.

4. Contactless Payment Solutions:

With the growing popularity of contactless payments, banks should embrace fintech innovations like ‘tap to pay’ technology and e-wallet integrations to offer convenient and secure payment options to customers.

5. Biometric ATMs:

Integrating biometric authentication methods such as fingerprint and palm vein scanning in ATMs enhances security measures, providing customers with a secure and efficient banking experience.

Conclusion

Fintech has ushered in a transformative era in banking, offering a plethora of services tailored to meet evolving customer needs. Embracing fintech post-pandemic will not only enhance customer experience but also solidify the role of technology in reshaping the banking landscape for the future.

Image Credit: anete lusina; pexels; thank you!

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