The modern banking sector is nothing like it was a few decades ago. The spend on technology in this sector has been growing exponentially and has helped the bank, one of the oldest businesses, to streamline its business model. The latest technologies in the banking sector have helped banks execute their role of taking deposits from customers and offer loans more efficiently and swiftly, along with providing additional services like investment portfolio management, insurance services, etc.
When we speak of the benefits of technology for the banking sector,developments like ATMs and internet banking have been a boon to business growth - they allow exclusive online banking, deposits, and withdrawals without visiting a bank, transactions beyond banking hours, and other such benefits which help banks to keep track of every merchant account while also keeping cost of operations low and customers to save time and effort spent on availing such services.
In order to embed technology in their services, banks need services of financial services technology companies that develop tools and programs for such services. These companies help banks incorporate safety features like biometrics, cryptography, etc so that banks are enabled to offer swift transactions and secure transfer of sensitive financial information and hence, win customers.
Financial technology or fintech firms are constantly working to develop solutions that leverage big data and analytics for better customer experience, which leads to loyalty and eventually, revenues. In the modern times, technology is not restricted to just supporting financial transactions, it is more customer-centric, secure and targeted to deliver efficient products and services like instant payments, robotic process automation, hybrid cloud, and API platforms.
Fintech firms have dived into the financial management services arena and created a buzz in the industry with personalized services, conversational banking, cybersecurity, and cloud-based solutions. Acting as a major creative force, technology has made it possible for merchants to offer better services to their customers. The fintech boom is driving businesses across the world to change the way they operate and to streamline processes that would otherwise take a lot of time and resources. Along with the rest of the world, Kenya is also making strides in the fintech arena and has secured its place among the fintech hubs in Africa.
Mobile technology has fast-tracked the fintech revolution worldwide, and in Kenya too. With fast and simple digital modes available for money transfer available to all, even to those who do not have bank accounts, businesses have been able to expand their customer base. Consumers are also making the most of the other advantages of fintech on their mobile devices like forex trading. Mobile money transfers have become everyday events and have ensured more financial bandwidth for business growth, which has boosted the economic growth of the country as well.
Machine learning, Artificial Intelligence, Big Data Analytics, etc are new technologies that enable better financial decisions by eliminating guesswork. Apps pick up user habits and engage them in order to improve their unconscious saving and spending decisions. Fintech reduces the staffing expenses for merchants with automated customer services and AI interfaces that assist customers.
Funding in the global fintech sphere is headed towards new heights, and so is the activity in the field, with new fintech firms cropping up and offering multiple B2B and B2C solutions for banks, businesses and consumers to simplify financial transactions. Finserve Africa is one of the leading fintech firms in Kenya and has developed many solutions that have been adopted by several businesses. Now recognized as a facilitator of economic growth in the African continent, Finserve has acted a disruptor in the finance sector and has enabled businesses to utilize technology to smoothen out the hurdles faced while carrying out day to day operations.
