Do you like investing in the market, so that your money is not lying idle in the bank? Have you been following the financial market closely to keep a tab on the movement of stocks and various other instruments? Then you know how time consuming git can be and how sound your financial knowledge must be, for you to understand the impact of every event on the market.
Banks have always offered various financial services and products to help individuals earn more with their own money. Today there are many financial service providers who compete with these banks and give similar or even better offers.
Not only are the products and services more versatile to suit the needs of different segments of people, the rates offered are also competitive. With technological advancement and software replacing humans, these companies rely on their software like Fintech LTD to keep their customers up to date with all investment related information.
Changing The banking Scenario
Fintech companies offer the same services like the banks and hence the competition. Due to the technology used and the speed of services, these companies get more customers when compared to the banks. Especially the current generation that relies largely on Apps and other software they can use on their smart phones.
Banks offer a lot of free services which are charged for by these Fintech companies. This is because these companies do not believe in any free banking as it is not possible. When you want a service, it has to be paid for. If you are not paying for it, someone else is.
In banks when you are a privileged customer because you have a good balance for a continuous period of time, you are not charged for many services, which are otherwise charged. So who pays for them? Certainly not the bank. The poorer people who do not have sufficient balance in their accounts, use the overdraft facilities to aid their businesses, have to pay an interest. This is where the fees for the free services are collected.
Hence as per this model, the rich get the services for free while the poor become poorer. The Fintech companies aim to change this and make financial services equal for one and all. Hence everyone has to pay for the services availed by them and cannot expect anything to come for free.
With everyone being treated equally, more of the lower income groups are seen to prefer such companies over banks where they are charged for someone else’s services. If banks want to compete with such institutions, they will have to forego the free banking practice