The Effects Of Financial Technology On Traditional Banking

Updated: Mar 14

Seeing the role financial technology plays to advance smooth and efficient payment methods globally, one does not necessarily need to go to the bank to carry out transactions like withdrawals, payments, transfer etc, you can easily do all this with fintech Apps. Moreover, the emergence of Fintech companies has helped to reduce cost, save time, improve security, speed up the network and curb other challenges consumers encounter daily from the traditional banking system Fintech companies and commercial banks will collaborate together to deliver excellent services, anyone with or without a bank account can carry out transactions with fintech apps. With fintech apps, you can create and set up your wallet account which will enable you to send and receive payments, subscriptions and pay utility bills. One can do all these with fintech Applications but in the case of having to withdraw physical cash then there's a need to embed your bank account to fintech apps as this will enable you to withdraw from your wallets directly to your bank. Fintech companies such as sapaNO Finance plays a major role in financial inclusion (availability and equality of opportunities to access financial services), individuals and businesses can access appropriate, affordable, and timely financial products and services as well as loan, equity, and insurance products.

Other benefits of fintech; Unlike traditional banking, where you're only limited to a few financial services, with fintech companies, you can enjoy these benefits; 1. Earnings One of the biggest advantages of fintech companies like sapaNO Finance, you can earn for every transaction made, it's a win-win situation 2. Discounts You also stand a chance to get discount offers whereby an actual cost of a product is reduced for consumers 3. Promo You can also enjoy promotional sales with fintech companies, for example, you are asked to make a purchase of 3 products and get one free 3. Cashback Incentive You get a cashback to your wallet after making five to ten transactions. Every fintech has its rules in order to enjoy this incentive, you might be asked to make a purchase or keep carrying out transactions for a certain period of time in order to enjoy these benefits 4. No transactional charge Unlike native banking, fintech companies like sapaNO Finance allow you to carry out unlimited transactions with charges, this means you won't pay any fee to carry out transactions Conclusion With fintech apps enjoying high rates of adoption and recognition globally, one could wonder whether there is still a role for financial institutions in the digital payment ecosystem Also, with the emergence of fintech companies and people's acceptance of its financial services, it’s important to recognize that banks provide the underlying financial infrastructure that most fintech ultimately rely on to deliver their services. This includes the deposit accounts that many consumers link to apps like digital wallets and P2P services From this article, one could say there's a need for strong partnerships and collaboration between financial institutions and fintech providers.

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