FinTech; an opportunity to re-defined the concept banking and financial services towards a more customer centric concept.
One main milestone of the financial services in this economic era, is the merge of technology with financial literacy, education, retail banking, investment and crypto-currencies. As it remains a relatively new concept to emerging financial services centers like Mauritius, established International Financial Centers (IFC) such as New York, London and Singapore, have started taking bold step to engage in FinTech. Research shows that FinTech ventures have tripled to $12.21 billion in 2014, clearly demonstrating that digital revolution is rapidly making its place in the financial services sector.
The evolution of technology in the 21st Century has never been so dynamic. Technology has penetrated every sphere of our lives that it has re-defined our style of living. The influence of technology cannot be overlook when it comes to communication and doing business in this modern industrial era.
Its ascension has led to significant and meaningful changes in the way transactions in the financial services are being done. As technology has gradually perpetuated our daily lives, financial technology has grown explosively with the massive development of internet and mobile innovation.
The concept of financial technology or FinTech, can apply to any innovation in how people transact business with the use of technology to make business transactions more efficient and dynamic.
FinTech is the notion applied to computer technology integrating to back office of banks or trading firms with a variety of services and products connected to technological interventions from personal to commercial finance.
One main milestone of the financial services in this economic era is the merge of technology with financial literacy, education, retail banking, investment and crypto-currencies like bitcoin.
According to a research of Accenture Global FinTech analysis, FinTech ventures has tripled to $12.21 billion in 2014, clearly demonstrating that digital revolution is rapidly making its place in the financial services sector.
- By Kashish Jadoo
As it remains a relatively new concept to emerging financial services centers like Mauritius, established International Financial Centers (IFC) such as New York, London and Singapore, have started taking bold step to engage in FinTech.
With the rise of mobile banking applications and smartphones usage, financial institutions have been able to connect and create efficient and sticky relationships with customers by providing information and services at the right time.
Established IFC’s has recognised the rapid pace of technology as an opportunity to re-define their concept of banking and financial services towards a more customer centric concept. Through the setting up of innovation labs and venture capital funds, financial institutions are ready to engage with the Fintech strategy.
Banks are becoming more accessible and versatile while meeting up competitive edge and productivity. The marriage of banks and technology is rebuilding the concept of service provider as consumer platforms that are as inherently digital as Apple or Amazon.
This new digital customer services are enhancing banking services as customer experience rather than just a mere marketing strategy. As customers have come to rely on many different connected devices, financial services firms are able to create linked worlds based on individual behaviours and preferences.
The evolving trend of FinTech cannot be ignored, if Mauritius is aiming to establish itself as an IFC. Despite it is a new concept perpetuating established financial services centers, FinTech offers solutions that may eventually create a global currency to efficient payment and its evolving trends benefits largely the customers and financial institutions. While adopting a niche strategy, tech ventures are progressively taking over small pieces of the financial industry.
From a banking customer care perspective/financial advisor to investment and money transfer, FinTech is deemed to revolutionised the financial sector in the long run. Taking into consideration at what FinTech companies has done in the last few years, possible evolving trends can be forecast in this innovative industry
However, the main issue in this context remains the aspect of security. In Mauritius, commercial banks are offering the services that have very good security features for their online system.
Moreover, the government has established authorities such as Cyber Crime Unit and has enacted severe laws for online frauds. Nevertheless, despite regulatory measures to protect the data of the online banking user, there is a reluctance to converge towards FinTech or digital financial as tool for business transactions. The idea to make internet banking easy to understand, secure and accessible rely highly on a good banking marketing awareness campaign in Mauritius.
Accentuating on online banking or FinTech, will bridge the distance between geographically remote locations and create new business opportunities. The Mauritius financial services sector sees global change is accelerating. It is clear that the digital revolution is under-way and the impact on banking and non-banking will simultaneously be better, faster and more accessible. Embracing and engaging in FinTech is a leap towards openness, innovation and smart investments.