It is apparent that Fintech is transforming the financial sector by making use of technologies like AI and digital payments. Fintech startups, especially, have been making influential changes in this industry with the innovation they bring to the table and the ability to attend to the ever-demanding customers of the 21st century as compared to traditional banks.
Gosh, does that spell the end for banks?
Not quite. Though Fintech churns out solutions to problems that occur with traditional banking and has many benefits of bank digitization, it is still hard for them to override the significance of traditional banks.
There are a few reasons to this, among others:
1. There is a deep trust placed in banks which Fintech have yet to achieve as banks have established their presence since the olden days;
2. The relationship banks have with customers. This relationship can only be fostered with time, which is relatively still out of grasp for Fintech companies as of now;
3. People have faith in banks to handle complicated tasks;
4. Some services require customers to be there in person and physical signatures;
5. Banks provide a sense of continuity that digital banks cannot achieve yet.