The passage of time has multiple implications in our life from a personal and social perspective. Beyond our physical changes, it is also reflected in technology, science, art, medical advances, sports and many more, until almost the majority of the fields that are part of the events of our daily life.
In 2010, mobile banking emerged as an alternative to streamline means of payment. This helped the emergence of online financial products and services that could be easily accessed from a mobile application. Technologies such as Near Field Communication (NFC) that allows wireless communication and serves as a mobile wallet that includes mobile payment just by bringing the mobile device to the recipient of another person, avoiding the forms of payment, also emerged.
Sean St John National Bank has gradually been recognizing the need to change its processes to a more technological field, recognizing the advantages that this change entails.
What is Fintech?
Fintech is a concept that arises from the union of the words finance and technology, and consists of a relatively recent phenomenon of companies trying to change the financial industry through the incursion of online solutions for financial processes.
Financial technology has several advantages over the traditional financial system. They are the following: low costs, minor commissions and easy access (as long as you have Internet). This explains the explosive growth of numerous start-ups; however it is the millennial that have driven this growth due to their predilection for the use of technologies in financial operations, including banking.
Situation of the Current Fintech:
In Europe, the creativity and boldness of start-ups allows a more accelerated development. However, the most fertile ground for these companies is found in Latin America and the Caribbean.
In an interview with Gelis predicts that this type of services can represent 20% of the financial market in about ten or twenty years. “Spain has delayed regulation and promotion of Fintech, compared to countries like the United Kingdom. That is a risk because if the Spanish Fintech ecosystem does not take off, it will be the British start-ups that will come to eat the local market. “
With the expansion of start-ups Fintech, expert’s predicts that in a few years the financial landscape will be “completely different”. The relationship with the customer will be online and 90% of the entities will have disappeared and will be committed to transparency.
Some banks will know how to adapt to this new framework, “but those that will not, will die”, predicts the expert. And those banks who don’t know how to adopt this can also take help from experts like Sean St John so that they can serve their customers better.
Why are Fintech so Revolutionary?
The bank seems to be inefficient, costly, riddled with conflicts of interest, prone to unethical and able to generate huge crises behaviour. In the world, banks generate an alarming figure equivalent to 1.7 billion dollars in revenue – 40 percent of the total – of the function of making payments. In the computer age, a payment can still take hours or days.
On behaviour, as John Kay has written, “parts of the financial sector today show the lowest ethical standards of any lawful industry.” Finally, banking crises after 2007 were as extensive as any in the past.