Since the start of the FinTech revolution, there has been an increasing global interest in monitoring consumer behaviour, especially in how consumers respond to digital means over physical ones. FinTech has widened people’s horizons in terms of financial demand: it has not only given consumers more options for managing their money but also numerous tools and resources to better their financial knowledge. In this week’s blog, we dissect what exactly consumers are gaining from the FinTech industry and whether it is set to become the new norm in the new future.
Greater Financial Control
With all the technological AI (Artificial Intelligence) advances, personalisation through AI tools such as finance suggestions in the app depending on one’s situation, enables customers to feel more in control over their finances and more confident in their financial decisions. Another advantage from this aspect is that all the financial aid tools on mobile banking apps whether it be company blogs, help desks or chatbots, ultimately empower consumers to become even more financially literate and in today’s society, it is fair to say that this is starting to happen at a more global level.
It is evident that COVID-19 was definitely a catalyst for the rise in digitalisation across many industries and this saw an increased demand in online services. Unlike traditional banking institutions, mobile banking means are available 24/7, whether just to send money to friends, create saving pots or even ask chatbots for assistance. This gives consumers a lot more flexibility in terms of when they need to access the bank without worrying about opening hours or long queues. Whilst this is all an advantage, digital customer service is not the same as face-to-face however due to people being used to the convenience of everything being online it is more or less becoming more of an expectation from consumers to have both online and physical banking platforms.
As previously mentioned, digital banking further improves financial confidence as it puts consumers more in control, however in terms of inclusivity this has had a mixed effect on society. One of the main advantages is that with banking procedures being digitised, it opens new financial strategies for people from all walks of life with limited discrimination as with everyone having access to a mobile banking app and they would therefore gain access to the same opportunities such as securing a loan or getting a mortgage. However, the disadvantage of the rise of digital banking is its tendency to exclude certain sections of the population such as the elderly, poor and small businesses which all rely on cash.
From looking into how different areas of FinTech affect consumer behaviours it is clear that for the most part, consumers are benefiting from it. Even though not everyone is more inclined to digital online platforms especially when it comes to banking, FinTech services are bound to come up with solutions in order for it to appeal to everyone and become even more inclusive towards the marginalised groups mentioned before. Ultimately, FinTech services have encouraged consumers to make the most of what these mobile banking apps have to offer but it is clear that people still benefit from both digital FinTech services and traditional banking systems.