6 things traditional banks can learn from new banks and fintech companies

When it comes to people’s finances, banks continue to act as a one-stop shop for the consumer and are often the primary point of contact. In addition, traditional banks have physical distribution networks that can provide a great multi-channel experience. On the other hand, neobanks and fintech companies provide a completely new customer experience and are supported by the logic of the digital revolution. They are easily accessible because users do not need to go to a branch or wait in line to fill out paperwork to use banking services. Using a sophisticated banking application, everything is fully digitized and accessible with just a few clicks. Traditional banks need to up their game in this technologically advanced world.

Flexible cloud infrastructure

Neobanks and fintech companies use intelligent cloud solutions powered by AI to store and manage data efficiently and support applied analytics, which is difficult for traditional banks to do. With the help of these technologies, the banks can build a flexible infrastructure that gives all employees easy access to customer and office-related information. Better customer insight, increased productivity, innovation, agility and even lower risk of data theft are the result of this. Traditional banks can accelerate the adoption of the cloud and provide their customers with more flexible financial services by partnering with start-ups.

Advanced security and transparency

Traditional banks have major concerns about security and transparency. Fintech firms and Neobanks are backed by data security rules to protect consumer information and protect against unauthorized access to accounts.

Neobanks keeps its consumers updated on payments and transactions in real time, demonstrating its transparency. In addition, they provide information on any additional fees and possible penalties the customer may face in a specific circumstance.

Neobanks and Fintechs use encryption technology, biometric verification, two-factor authorization and role-based access management to stop fraud and cyber-attacks, making banking safe for customers.

Hassle-free process

Neobanks and Fintechs challenge the conventional banking system by using artificial intelligence and technology to provide users with a range of online banking solutions. Neo-banks has an automated front-end and back-end process that not only lowers operational costs for banks, but also completely eliminates the possibility of human error.

Therefore, traditional banks can automate a number of operational tasks such as loan administration, account opening and document verification using AI-powered tools.

Elevate the customer experience

Traditional banks’ online platforms are quite outdated, use outdated technology, and do not offer a pleasant user experience. Neobanks and Fintech companies offer 24/7 customer care using AI-enabled chat bots thanks to their user-friendly design, cutting-edge technology stack and intuitive mobile app. Traditional Banks should choose a better balance between revenue and customer centricity.

These fintech companies also prioritize customer feedback and personalization needs, which benefits them.

Ease of use

Neobanks and fintech companies have a technological advantage, know-how to support effective consumer-driven programs. Instead of using digitized solutions that can strengthen them in the financial market, traditional banks spend a large part of their budgets on maintaining their outdated legacy systems.

Thanks to the partnership between traditional banks and new banks, traditional institutions have increased their user-friendliness with more powerful online services and apps that are easy for customers to understand and use. improve all aspects of the services offered.

Lower taxes, higher prices

Neobanks and fintechs have lower operating costs because they have fewer employees and fewer physical branch networks. The lower prices and lack of monthly fee payments that result from their branchless business model are usually passed on to their customers. One of the top five motivations for switching to digital-only players is to get better prices.

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