In the past, big banks and other financial institutions have stayed out of the way of the expanding fintech industry. The reason for this is most likely because they wanted to avoid embracing the very technologies that threatened to end their monopoly on the banking, finance, loaning and investment industries.
Here atfintechwebnews.co.uk, we understand that because of the rapid expansion of fintechs, big banks have to start paying attention to what is happening in their world. To put it simply, if well-established financial institutions didn’t start thinking of ways to work with the newcomers in the fintech world, they would be swallowed up and left behind.
Consumers benefitting from better service
Consumers around the world have been benefiting from more efficient and versatile financial services for some time now; we have reported on fintechwebnews.co.uk about a lot of great services such as Uber and PayPal.
A big part of the rise in fintechs is their advantage of speed and agility. Fintech start-ups benefit especially from this advantage, changing and evolving rapidly to find solutions to problems everyday consumers face.
Just a few of the services brought forward by these fintech companies are peer-to-peer payments, artificial intelligence fraud detection and smart loans.
Banks and fintechs leaning on each other
The world of banking is being revolutionised by the implementation of technology. Technologies are being developed to help investment bankers make better choices than ever and helping traders make well informed, more profitable trades.
As financial technology now helps the banks directly, they have had huge injections of cash to develop software and change the face of banking forever. A good example of this investment is finance giant Goldman Sachs. Goldman Sachs invested more than $570 million in fintech companies since 2012.