The banking system has changed tremendously over the past years. Financial service providers have moved away from traditional systems to digital banking thus, enhancing service delivery. Fintech startups have been on the rise and more than 88% of the startups are bound to take over the market in the coming years. It is poised that the industry will continue to grow to reshape the banking payment system. Here is how Fintech startups made a revolution in the financial landscape.
1. Through Innovative Banking Solutions
Fintech offers highly innovative banking solutions that ensure efficient transactions. They tailor their services to meet the unique needs of clients in terms of personalisation, convenience, accessibility and satisfaction. Many Fintech service providers are offering innovative solutions based on their mode of operation. They include;
- PayPal is considered the mother of Fintech startups. Started in 1998, the digital payment platform has become a popular payment option across different parts of the globe. Even though it took some years for PayPal to gain clients trust based on its revolutionary banking payment system approach, it has grown to win many clients year in year out.
PayPal is a highly flexible payment system that converts clients using traditional banking systems to digital FinTech solutions users. It is a reliable, trusted and efficient payment system that offers excellent banking solutions. As such, you can carry out your banking services without having to go through the hectic processes of traditional banking. PayPal offers great features far from the ATMs and other perks offered by traditional banking systems.
PayPal through its subsequent owner and CEO made positive changes to the business and the industry at large. Currently, the digital payment system has more than 205 million users across the globe and has enjoyed more than 1.7 billion transactions since its birth. With such, PayPal is a global giant from humble roots and with other startups, it will continue to reshape the financial industry.
- SoFI is also one of the most popular lending startup operating online. Started in 2011, it is an incredible business model that revolves on offering mortgages and student loans. The company has made a significant impact on the global market due to it’s out of the box approach in regards to banking. The service provider has brought immense changes in the industry by helping those with financial skills and students to get the kind of help they need most. The startup gained enormous popularity due to its efficiency in offering quality and reliable Fintech banking solutions.
- Stripe enhancing E-commerce. Undoubtedly, eCommerce is a well-designed system when it comes to making global transactions, purchasing or procuring products and services in a user-friendly manner. Stripe is a Fintech startup that develops excellent transaction systems based on its business model. It provides a perfect e-commerce platform, established partnerships with relevant financial institutions and service providers to ensure versatility as well as choices for clients.
Today, Stripe has revolutionised the banking payment system and partners with global brands including Kickstarter, Shopify, Booking and Amazon among others to enhance its operations. Since its inception, it has continued to enjoy huge success thanks to the high demand for its services.
The startup acted quickly to gain the right market for the development of its financial system. Its e-commerce platform is successful enabling the startup to maintain its rightful position in the banking payment system market. Today, it is quite successful and is expected to enhance the financial services industry even in many years to come.
- Adyen offering Efficient Payment System. Adyen Fintech established in 2006 is reshaping the banking payment system market through a simple, efficient and straightforward payment system. The company based in the Netherlands made its entry on the global market following a user-friendly approach in its transactional management. It has a simple and highly interactive feature that makes every transaction worthwhile. Adyen is a reliable and scalable payment system that works perfectly well for different industries.
Over the years, Adyen has been effective and has attracted top giants including Microsoft, Google and Netflix. This has increased its ROI to more 106% since 2018. It also makes more than 80percent transactions yearly because of its flexibility in terms of payment systems regardless of the business model and location you are operating from. At present, Adyen serves more than 4, 000 businesses and continues to gain more clients as years go by.
Therefore, these platforms offer innovative solutions and enhance the customer experience. Regardless of the type of financial activity, a client is engaged in, digital solutions ensure seamless and consistent transactions.
2. Streamlines Operations
Fintech startups also streamline different operations. Through agency banking solution, agents can benefit a great deal from virtual assistants since they spend less time handling different conversations, inquiries and complex tasks. Chatbot technology expands usability, a development that automates processes and advanced solutions for financial services.
3. Open Innovations
Fintech startups offer new platforms for digital transformations that provide room for openness. The open concept offers room for new ideas and for third party innovators to explore new development opportunities. What’s more, Fintech through open approach also enhances competition to ensure affordable services, convenience when carrying out transactions and bank statement reporting.
4. Blockchain Technology
Fintech startups are embracing blockchain technologies, an innovation that transforms the banking system. This wave continues to enhance the financial industry in the long run. It is a technology that reshapes the payment systems, transactions and offers trading platforms that offer increased transparency. Furthermore, cryptocurrencies and blockchain technologies ensure easy, fast, transparent and secure transactions.
5. Automation of Financial Services
FinTech startups automate financial services. This is an innovation that has continued to reshape the banking payment system and the financial industry at large. The process that has taken the world by storm continues to offer competitive digital payment solutions. This is because they are designed and implemented in a highly advanced manner.
Similarly, the startups automate financial advice. This is a hybrid service and approach that explores an array of processes and offers data-driven insights. Automation also helps agents and financial advisors in their asset and wallet management and assessment to capture leads, attract more clients and build solid relations. It is a strategy that continues to meet the demands of clients when it comes to digital banking. As such, the banking industry is embracing such technologies to deliver quality and reliable services.