Financial technology (Fintech) is on the rise in the financial service industry (FSI) aligning with the constant changing dynamics of the industry, one thing is for certain ICT will be present every step of the way.
The financial sector is the fastest changing industry disrupting on itself constantly, post 2008, when credibility and profitability of financial institutions declined, that led to increased demand for alternative finance.
In his keynote speech at the Fintech Summit 2018, SimbaNET’s Managing Director Mr. Rakesh Kukreja said, “Many reports show that financial sector customers are more willing to use new technologies and are seeking new solutions outside of traditional banks. Through technology, there is a great opportunity to provide customers what they desire from financial services.”
Disruption in the FSIs contributes to the consumers adaptability as they are not only open minded to indulge in different transaction methods but also will certainly demand for alternative finance after financial crisis.
Kukreja’s sentiments were echoed by Mr. Hussein Kitambi the COO at the SimbaNET noting: “It’s time for financial service institutions to offer the customers what they want. Institutions such as SAACCOs are now adopting to younger customer expectations and we are today witnessing a technological revolution.”
The younger generation, millennials or iGeners adapt smoothly to the cutting edge technologies and smartphones.
In a recent report, Millennials’ annual spending today is about $2.45 trillion and by end of 2018, their projected income will be $3.39 trillion, surpassing baby boomers.
Though leading the curve with disruptions, FSIs still rely on government support and are opting to reduce regulatory barriers to ensure the rise of fintech.