The emergence of Fintech companies in the financial ecosystem has revolutionized the options for many users. These companies have been able to take advantage of technological advances and society’s gradual adaptation to the digital environment in the last few years. This is why they have been gaining more and more prominence and have consolidated their position in an industry that has historically been dominated by traditional institutions like banks.
Banks and other organizations like brokerage firms have tried to adapt to the times and take advantage of digitalization to reduce costs. However, Fintech companies are the ones who have technology in their DNA. It’s their principal vehicle for streamlining and automating services and processes. They carry innovation like a banner and they flaunt it with new alternatives and options that were hard to find in traditional systems.
One example of this can be found in one of the main companies included in this group, Naga. It not only allows the user to act as a Trader, but it also provides the opportunity for an inexperienced client to rely on others who are more experienced through the Autocopy by NAGA option, an action that was much more complex before the appearance of digital institutions.
Another central element of Fintech has been the ability to group all options in one environment, usually an app, where users can carry out operations, receive information, and consult their portfolio, among other functions. In the case of NAGA Trade, users even have access to specific training as well as a debit card to manage investments and payments, and also to an updated information about CDFs, Ltcusd, and many more. This is definitely a different point of view from the conservative mentality of established institutions that have a lesser capacity for change.
These institutions seem to have accepted that they can’t beat Fintech companies and frankly, they shouldn’t. That’s why they’ve partnered with some of them or have copied certain models and ideas that they’ve found inspiring, including formats and commercial products. Rather than abandoning innovation, many banks today reflect the operations of these new companies, taking advantage of their initiatives and their way of connecting to a modern society.
Fighting with their own weapons
Capitalizing on their assets to move forward
But Fintech companies aren’t going to settle for simply being muses for other organizations, nor are they going to innovate just to adopt an externalized IDI role for banks and other entities. The next step is to create alliances between Fintech companies and technologies that belong to other sectors so they can offer more options and update their key operational strategies.
To provide a current example, a substantial part of the sales of these companies are carried out and perfected through messaging platforms like Telegram, WhatsApp and Facebook Messenger. The companies that specialize in this type of communication can provide a lot of growth for Fintech companies by improving the communicative process with their clients and facilitating certain operations (like obtaining financing or estate planning).
Another example is the idea of incorporating tools like Virtual Reality or Augmented Reality to improve users’ experience in the Fintech digital environment. It’s also worth mentioning that there could be a more productive use of Big Data and other cases in which a collaboration with leading technology companies in different spheres can create a synergy that consolidates their place in the market ahead of more traditional institutions.
Fintech companies have discovered that they have a place in the financial market and that there’s no reason for this growth to stop. On the contrary, they have room to continue their rise if they know how to continue to exploit technology, which is more and more appreciated by users and is part of its differential asset compared to classic financial organizations. To this end, creating large scale collaborations could be vitally important to their future.
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