4 Critical Observations for the Future of Fintech as per Deltec Bank, Bahamas

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4 Critical Observations for the Future of Fintech as per Deltec Bank, Bahamas

August 30
00:18 2020
4 Critical Observations for the Future of Fintech as per Deltec Bank, Bahamas

Deltec Bank, Bahamas
Deltec Bank, Bahamas said, “Numerous changes have simplified the ways that we do business today. We have chatbots, blockchain, and artificial intelligence creating automated functions that serve customers and grow profits.”

Fintech poses a significant threat to the traditional banking services industry. Even though financial institutions have high levels of market saturation, the cost savings that new technologies are providing to disruptors make it too expensive for older institutions to ignore this trend.

China is already seeing what can happen when startups using fintech services can match their offerings to what traditional institutions provide. Some companies in this area even have more customers than the top banks in the country.

Fintech can be just as complementary to the banking services industry as it can be competitive. Some unique benefits are possible for an institution that is willing to embrace the idea of change.

1. Fintech improves the health of a bank.

Banks and credit unions are slow-moving vehicles for money. They still function, but it is like watching a snail trying to race a cheetah. Embracing the new concepts that the fintech industry provides can expand opportunities for traditional institutions while enhancing their performance. This combination creates an outcome that can improve profitability.

2. It can improve customer retention.

When one bank moves like a snail while the other is fast like a cheetah, most customers are going to choose the latter option. The use of fintech can help legacy institutions retain more customers because the partnership works to keep them competitive. There is plenty of data available to create customized solutions, so it is possible for some larger entities to create more choices than their disruptors.

3. Banks can diversify their loan portfolios.

Banks and credit unions get into comfortable patterns where they only take specific risks with particular customers. The use of fintech components allows these firms to look for more consumers who qualify for lending products in non-traditional ways. This process expands the portfolio of the institution, creating more diversification so that risks are spread out instead of stuck in a single budget line.

4. It helps with specific pain points.

Every financial institution has unique pain points that it continuously works to solve. It might be the speed of loan processing, money transfers, or debit card activities. The fintech sector can analyze the individual actions of each location to determine where productivity and cost losses exist. Then individualized solutions can be introduced into the setting to save time and money without reducing quality.

5. Fintech creates better insights.

According to Deltec Bank, “When a bank understands what its customers do with their money, then it is easier to find tools, resources, and products that can help to expand opportunities.” When people receive real-time offers or services, then it is easier for them to make financial decisions. This process leads to a positive brand association that allows an institution to be more useful at the individual level.

The younger generations are still visiting their local bank branch, but it doesn’t happen as often as before. With innovations from fintech leading the way, the services a teller can provide will be available online at any time for customer convenience.

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

Media Contact
Company Name: Deltec International Group
Contact Person: Media Manager
Email: Send Email
Phone: 242 302 4100
Country: Bahamas
Website: https://www.deltecbank.com/

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