Talking "Fintech" and the Meaning Behind the New Buzzword
The Financial Services industry is always considered a step or two behind most due to a number of factors, but mainly because it’s highly regulated. Following suit, the switch to digital has been a bit slow, though it is certainly here. In the industry, we call digital technologies “Fintechs”.
Like in most industries, the bigger players, take Wells Fargo and Chase for example, were earlier adopters of digital technologies, like Zelle. Access to more capital and the opportunity to take larger risks may have led to this.
For community banks, it’s been a bit slower, though there are certainly players across the U.S. paving the way in the Fintech space. There has also been the “birth” of online services that connect people to lenders via a digital platform, like Happy Money and SoFi.
Looking at supply chains in financial industries is a bit unique, I think. There are several processes for various components of the organization. For example, there may be a specific supply chain for debit cards. In the case of my company, we outsource that.
According to World Bank Blogs, “Fintech and digitization of financial services have the potential to lower costs, address information asymmetries, and increase speed and accessibility.”
When you’re looking at the selling of banking services, you’re looking at an intricate process involving people selling. Big-picture-wise, it’s a web of unique supply chains that make up the day-to-day functions of a bank or financial service provider.
Really, the latest topic in the financial services world related to digital is something we’re hearing everywhere – cryptocurrency. Banks, like my organization, have begun to adopt new digital currencies, blockchain specifically, using my company as an example. The adoption of digital in the banking industry is certainly transformative and there really is no right or wrong place or way to start.
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