Twenty years ago, banking looked vastly different than it does now. Thanks to new technology and disruptive fintech, how banks serve their customers is changing. Here’s what you need to know.
The goal of fintech vs. traditional banking goals
In the past, a bank looked out for the best interests of its shareholders. That meant creating financial products and services that made the most money for them.
The goal of fintech companies, on the other hand, is to design products and services that meets the needs of the end user. For instance, one fintech startup, Aspiration.com designs banking products for customers who want to invest in socially conscious companies and funds – organizations that protect the redwood forest or companies that use sustainable manufacturing practices.
Instead of looking at how they can give shareholders the best returns, they’re trying to find ways to fulfill otherwise unmet customer needs.
More options for banking customers
Because banking customers – corporate, municipal, and individual customers alike – all have access to thousands of banks, they’re not limited any more to the products and services offered by their local bank.
If they don’t find a service that meets their need at the bank in their backyard, they hop online to find a bank that can and will meet their needs.
Because of their almost unlimited options, customers want their banking to revolve around them. They know if your bank isn’t offering great rates that they can find better rates elsewhere.
Banks can’t ignore change
A common response we’ve seen from banks is to ignore the change fintech brings and keep trying to do banking the way they’ve always done it. Unfortunately, this approach will only work for so long until all banks are either forced to change or eventually (and sadly) fail or are acquired.
Banks have to do something.
And that’s why ADM is here. We’re in this business to help BOTH depositors and banks. And we want banks to succeed, whether that’s a bank right here in Wisconsin, or a bank several states over.
We want to help you succeed and to find the best depositors for your bank. Want to learn how we can help? Call 414-961-6600.