In 2017, there are many options for customers to choose in order to do a transaction. They can decide to use service from any fintech, or they might use service from a bank. In general, fintech and bank give similar services such as online banking, credit card and debit card processing. However, there are differences between fintech and banks. In fact, both have their roles and advantages. Also, we can see that fintech were growing fast since they start up the services for many years ago. Globally, fintech funding was US$5.5 billion since 11 years ago and can be up to US$78.6 billion now.
All about Fintech
Fintech is described as financial services that are delivered to the customers by using technology. Typical financial services are mobile payments, lending and borrowing, and fund-raising. Fintech uses technology in a better way to make people feel convenient living in the modern age. According to TechinAsia, the reasons why consumers can adopt fintech are because of it is easy for them to set up an account, in fact, rates and fees that fintech offered are more attractive and cheap. On the other hand, fintech helps SMEs to acquire some funds. SMEs will not afford to do a loan with banks because of some loans and other fees. Also, fintech helps people who are ‘unbanked’ but desire to buy or sell online with their services. Only by using the mobile phone, all these unbanked people can join other online buyers and follow the trends.
All about Bank
Banks are crucial for each country. It will keep everything confidential. They will provide services that customers need. Everyone already knows about banks, but not all understand how a bank works. The bank acts as an intermediary between two parties. They will help both sides to do a transaction or any services. Banks provide many services such as savings, loans, transfer of funds and much more. Some said that banks would disappear in the future. However, as long as bank dominates on lending, investing and deposits, they will sustain in the market. Banks basically will keep the customer’s information and will not easily give it to other parties. So the customer will feel more secure and safe doing the transaction with the bank.
Fintech or bank, both have their advantages which lead them to cooperate instead of competing. So as merchants or customers, choosing which one is the best and suit your business and demands are crucial in developing your company.
Article by Nabihah Jasri