Let’s delve into another interesting industry that is changing the way every human-being on this planet deals with their expenditures and investment options. FinTech, an industry showcasing the influx of finance and technology, has been bringing about a revolution in the finance industry. The way we make payments, transfer money to our friends, invest into stocks and manage our wealth has changed due to the onset of this significant industry.
Earlier, we used to carry our wallets everywhere with us. Leaving home without a wallet was a frightening thought as it contained all our valuables including all the important cards and yes, most importantly, cash. But, what exactly is happening these days? Paying has become as simple as tapping your phone on the payment portal. Apple Pay, a mobile payment and digital wallet service, introduced by Apple Inc. allows you to make payments that are simply authenticated by our Face ID, Touch ID or a secure password. In addition to this, you can easily send and receive money from friends and family in messages. All you have to do is add your credit card, debit card or prepaid card to the wallet and you’re all set to leave the house without it.
Suppose you are visiting a store to purchase grocery for your apartment. As soon as you reach the billing counter, you realize that you do not have sufficient balance in your bank account to process the payment. Running back home and getting the cash sounds like an irritating process, right? DBS, a leading banking institution in Singapore, has introduced an application named DBS PayLah that allows its customers to transfer cash with one single click. Now, you can instantly call your flatmate and ask him to transfer how much ever you need to complete the billing process. Local banks all over the world have started offering similar services to ensure customer satisfaction and loyalty.
Technology is spreading its roots in almost all the sectors and the results that we see are phenomenal. Day by day, more and more people are relying on mobile banking. According to reports, 61% of the population accesses mobile banking on a regular basis. Banks are changing their conventional ways of doing business in order to meet the changing customer demands. The finance industry is facing a transition like no other industry where start-ups are introducing innovations that are disrupting the services offered by the incumbent firms. Companies are slowly adopting disruptive innovation, which is probably the only way to survive in the industry in the long run. Sustainable innovation, where companies make incremental changes to their current offerings, might help them now, but will it prove to be a long-lasting strategy in the future, say 2020?
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