The opportunity for fintech companies to disrupt traditional financial institutions is best observed today in millennials’ habits.
Millennials have a clear preference for accomplishing tasks through digital applications and services — something fintech companies are better at providing than banks in terms of speed and personalization.
Already, 62% of millennials in North America use products from fintech companies, according to the 2016 World Retail Banking Report. More disturbing, Gen Y customers are far less loyal to their banks: only 45% of North American millennials said they plan to stick with their current bank, compared to 85% of North American respondents from all other age groups.
While banks have steadily built up their online and mobile channels — in part to appeal to millennials — the products and services they offer in those channels are built on top of legacy systems and fail to provide the level of speed and personalization millennials expect. A customer might be able to deposit a check from anywhere with their mobile device, but it can take several days for that deposit to post to the user’s account.
To cater to this increasingly important customer demographic, banks should embrace blockchain technology and artificial intelligence now or risk losing millennials to fintech companies that aren’t bogged down with old technology.
For more on this story visit the following link: FINTECH HAS FORCED BANKS’ HAND ON BLOCKCHAIN, AI ADOPTION
Source: Artificial Intelligence Online