Pundits who see fintechs as the epitome of digital revolution need to pause and consider a simple fact, they may well be transitory and more dramatic changes are yet to come
October 17, 2018 | Saibal Dasgupta
The truth is that all aspects of financial industry today have not been revolutionised
Data ownership is a minefield of controversies and quarrels because there is immense value in owing it
Technology and new systems like blockchain have made it possible for financial services companies to overcome the bounds of their limited geographical space and operate in far off markets
Clearly, there is a lot more to come and present-day fintech operations are mere exploratory missions from financial engineers and companies looking for not just better alternatives but also stronger shields to deal with the uncertainties that lie ahead.
For decades, bankers made rules and imposed them unilaterally on customers while paying lip service about customer care. The market for finance has gone through waves of changes but the essential aspect about banks dictating the borrowing-lending cycle and managing “market forces” has remained the same.
There are diverse reasons, three of which are: deep pockets of banks, their ability to influence stock markets and the regulator’s fear of rocking the boat and triggering instability.
The worm has now begun to turn and the era of customer-first might be around the corner. Fintech companies are the ones spearheading the new revolution.
“There have been a lot of innovations in fintech industry, breaking new ground. We want products that are simple, secure and fast,” said Ellis Odynn, executive director and chief artificial intelligence (AI) officer at the think tank, Digital Finance Institute.
Take the case of WeChat, owned by Tencent, which started out as a messaging platform and gradually added fa...
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