The fintech revolution has done more than unbundling banking and its core services. It includes stimulating financial inclusion, raising overall economic growth, and making significant inroads into the business process of finance. The born-digital businesses shift with Google-BBVA partnership have made technology to the forefront. From targeting different points, the conventional risk-averse industry to digital payments, banking, P2P lending, and finance app advisory, among other channels.
Banks have been focusing on fintech start-ups over the last decade. It includes Investing in new technologies to create a horizontal stack, infrastructure, & customer experience to extend beyond conventional financial services.
Big tech companies Google, Apple, Facebook, and Amazon, lifted up their way into the financial market. It arises from the backroom with niche customer-centric services to changing the focus from ‘fintech’ to ‘techfin’.
FINTECH vs. TECHFIN
The difference is mainly focused on the source of the fundamental organization.
Fintech-financial services are delivered with digital technology through better experience to lower costs and raise revenue. The mobile banking service provided by conventional banks is an example of a fintech service.
TechFin- Technology companies determine an optimized approach to providing financial products as part of their wide-ranging services portfolio. Google, Facebook, Amazon, and Apple (GAFA) are some of the leading examples of TechFin companies in the United States, and Baidu, Alibaba & Tencent (BAT) in China.
How Big tech companies taking a step up in market share
The World FinTech Report 2020 discusses the challenges that banks face. It’s in order to respond to consumer demands and strategies that they can build to meet these emerging players.
Role of AI in financial analytics has changed the way of transacting & interacting. In 2019, Apple launched its Goldman Sachs credit card, eliminating the processing fee and providing a new layer of privacy and protection. Google has stepped up its Fintech aspirations by confirming the launch in 2020 of the account checking tool in partnership with Citigroup. which will be available via the Google Pay app.
Big tech banking giants are rounding out their portfolio with a series of strategic acquisitions to offer end-to-end banking-like solutions and raring to gain substantial market share from the leaders.
Tech giants are coming from a variety of different starting points to providing financial services. Companies like Google are app- and data-centric, approaching finance cloud computing from a technology and data processing perspective.
Finance app development company excel is in promoting integrated service delivery as part of a comprehensive customer experience approach, financially and otherwise. It also has advantages over conventional financial players, such as lack of history, ongoing innovation in emerging technology, and understanding of how best to leverage data to deliver successful market results to customers.
Read Also – How is AI Being Used in The Banking Sector 2020
Creating New Opportunities
Through interacting, financial institutions will move from a product-centred to a customer-centred delivery model and explore new ways to offer customized services to consumers. There are several benefits to BigTech’s operations in the financial services market. These include the scope for creativity in the provision of financial services, diversification, and performance.
- Better partnership-
Big tech companies have expanded into fields majorly dominated by financial institutions, offering seamless consumer services instead of becoming financial players.
- Educating leadership-
Combining financial institutions with technologies can help evaluate the potential impacts on business and customer-centric operating model for the organization.
- Impact on the business model-
Teams can drive success rapidly across new services, products, and markets, allowing access to appropriate data and APIs.
- Rethink data strategy-
Future redundancies arise from legacy records & rising costs. For large organizations, this is a significant savings field and often reduces the related risks associated with keeping data.
We can conclude that the digital core banking platform industry’s success depends on its ability to leverage data analytics, customer experience, and digital technologies to provide services that help today’s tech-savvy customers manage their finances better every day. But the ultimate winner will be the customer, irrespective of the service they prefer.
AppStudio has gained a reputation as one of the leading and best Fintech mobile app development companies to understand the industry’s needs and demands. Our fintech developers have knowledge of the investment industry and build solutions that allow end-users to collect their portfolio values, holdings overview, insights into their investments, etc.
Connect us for getting personalized fintech mobile app development solutions and get sophisticated solutions for your business.