There was a time when traditional financial institutions were skeptical of financial technology, partly due to the industry’s disruptive nature and competitive position in terms of conventional finance. Today, as the world is still dealing with the consequences of the COVID-19 pandemic, FinTech has become a cornerstone of the ‘new normal’, and banking customers are finding it increasingly appealing on a global level. This radical change in how we manage our finances has convinced traditional FIs over time that the future lies in digital, and that this inevitable change is better accommodated by their infrastructure sooner than later, if they wish to stay afloat in this raging sea of economic uncertainty.
FinTech companies and neobanks have seized the opportunity to fill in the gaps left behind by traditional finance; gaps that only widened with the onset of Coronavirus, but were ultimately filled by the almost-exponential adoption of FinTech around the world due to its convenient offering: no physical contact, instant financial access, remote account management, and much more.
As more FinTech companies and neobanks managed to cater to the needs of a post-pandemic world, their popularity rose and they became major contenders for the modern banking customer. With significant cuts to physical cost, these new players injected their capital in new emerging technologies that helped position them as disruptors of the digital era, delivering customer-centric, tailor-made experiences that delighted consumers and basically eliminated the risks associated with branch visits, saving a lot of time and effort in the process.
This consumer-first approach has resulted in a banking population that expects everything to be available ‘right now’, with rising expectations of ease, speed and convenience from their banks. While all this was happening, traditional financial institutions were relatively late to acknowledge FinTech’s potential for satisfying the modern customer, and even today as they adapt to the situation, they are still encumbered by their legacy processes and infrastructure. However, banks today have also prioritized their digital processes and are swiftly jumping on the speeding train that is FinTech. They are actively trying to guide customers away from slow, traditional processes through launching mobile banking wallets and apps, and perhaps more importantly, banks are actually partnering up with various innovative FinTech companies and startups that smoothly complement their offering, whether in the backend of frontend. They are trying hard to streamline the customer journey, using digital ID verification solutions and similar technologies that are big on speed, reliability, security, and ease of use.
Although FIs were aware of the need to digitize their approach even before COVID-19, the pandemic has really accelerated this need as physical branches were unable to open for the better part of a whole year, resulting in an unprecedented need to finalize their digital offering. This swift change sparked the digital journey for many traditional FIs, and they realized that they were already poised to make an impact in that area due to several existing factors:
Banks have the financial capabilities to digitize their strategies and offerings and practically eliminate physical processes. They also have an extensive knowledge database filled with customer profiles and demographics, and this rich history can be leveraged to reach the digital customer and maintain a healthy relationship with them. Finally, banks have their brands solidified in their customers’ mind which offers a great competitive advantage over emerging FinTech companies that are still making themselves known. These existing advantages can be exploited by banks to quickly gain ground in the digital finance ecosystem.
These capabilities are a great starting point for banks to go digital, but there are many more questions that need to be answered, if they are to catch up and compete with trendy FinTech organizations. Here are some critical questions that leading traditional FIs need to contemplate before making their digital transformation:
- Are all digital processes seamless and without interruption for customers? In other words, every single digital service needs to be easy, intuitive and without hiccups in order for customers to get (and stay) on board.
- Are all the bank’s digital channels aligned with physical processes and ready to accommodate the dynamic needs of modern customers? Websites, mobile apps, branches, customer service departments and any other relevant entities need to communicate and execute seamlessly between each other, so in turn the customer experience becomes flawless.
These are important questions to ponder, but the process of digital transformation is nowhere near as simple for traditional banks and FIs; this is why the time is now to invest in digital technologies and optimize digital channels to reflect all physical processes as much as possible, which allows for banks to perform their core offering in the background while maintaining their modernity and relevance with the digital crowd to keep the modern customer and acquire new ones along the way. The road is long but traditional FIs are greatly positioned to catch up with established FinTech companies if they adapt their strategy to the digital age.
Agri-FinTech Applications by Fresh Source
4th Episode of 7areef FinTech Podcast – Supply Chain Finance
FINTEKRS is for you!
Banque Misr Partnership
FINTEKRS Program Benefits
FINTEKRS 2nd Round- Assuit
3rd Episode of 7areef FinTech Podcast – Digital Payments
2nd Episode of 7areef FinTech Podcast – ROSCA
1st Episode of 7areef FinTech Podcast - FinTekrs Introduction
Are you interested to be “7areef FinTech”?!
“FinTech Egypt” Launches the First Digital Academy to Upskill the Workforce Skills in the Banking, Financial, and FinTech Sector
FINTECH IS EGYPT’S NEXT BIG OPPORTUNITY..Catch up with FINTEKRS
The Future is FinTech..JOIN FINTEKRS NOW!
FinTekrs’ Alex Round Sponsor
FinTech Worldwide Statistics...FINTEKRS is Not-To-Miss!
Who Can Apply to FINTEKRS
Knowledge from FINTEKRS!
4 Reasons to Join FINTEKRS!
FinTech Egypt releases its FinTech Investments-focused H1 2022 Landscape Review “Why Egypt is a promising market for FinTech Investments?”
The Women Techsters Initiative Fellowship Class of 2023
We're bringing top LPs and GPs from around the world
The Egyptian FinTech ecosystem is booming
We've joined forces to bring the best LPs and GPs together
We're taking a closer look at Egypt
Come and join the key players in the Middle East & Africa’s VC market
Connect with Egypt
Frontier of Egypt, Africa & the middle East in the 2022
Egypt’s First VC Summit kicks off in partnership between GIZ Egypt, AfricaGrow and Fintech Egypt
BANQUE MISR, NATIONAL BANK OF EGYPT, AND BANQUE DU CAIRE LEAD INVESTMENT IN NEW FINTECH FUND
The Increasing Influence of Women in FinTech
FinTech Egypt is releasing the first comprehensive report of its kind providing an overview of the unprecedented growth of FinTech in the Egyptian market
5 FinTech Trends to Follow in 2022
How FinTech is Disrupting an Age-Old Industry
RESHAPING FINTECH WITH AI: TOP AI INNOVATIONS IN THE FINANCIAL INDUSTRY
Accelerate’ha’ Female-Focused Problem Statements Now Live!
Breaking Entry Barriers for Women in FinTech
Episode 5: Accelerating FinTech Innovation through Open APIs
Episode 4: Understanding Blockchain’ s Potential in Disrupting FinTech
Episode 3: Discovering FinTech Talent through “FinYology - FinTech for Youth”
Episode 2: The Current & Future state of FinTech during COVID-19
FinTech Egypt Dialogue podcast launches its first-ever session about E-KYC Regulations and Regulatory Sandbox
Where does Artificial Intelligence fit in FinTech?
Critical FinTech Questions That Only the Near Future Can Answer
Special Interview With Dor-E, Winner Of The AI-Customer Experience FinTech Innovation Challenge
Egyptian Banking Institute Announces “The Future Of FinTech And Latest Digitalization Trends” Field Trip
Artificial Intelligence Is Transforming Banking As We Know It
Artificial Intelligence Is Transforming Banking As We Know It
Hub71 Partners With Techstars In Launching An Accelerator Program To Boost Startups
FINTECH IN THE SAVANNAH: Afro-Asia FinTech festival 2019 that took place in Nairobi Kenya
How Machine Learning Supports Credit Profiling
The Central Bank of Egypt’s Regulatory Sandbox started its first cohort in “e-KYC” to empower the FinTech ecosystem in Egypt.
Dubai Smart City Accelerator invites Egyptian startups to join Cairo Fast Track
Calling All Egyptian FinTech Startups To Participate In The Afro-Asia FinTech Festival!
Paynas Wins Big At Seamless North Africa 2019
Seamless North Africa 2019
Announcing The Inaugural AFI FinTech Showcase
Fintech Trends In 2019 - Blockchain Adoption
Discounted Start-Up Passes