The word “fintech” is simply a combination of the words “financial” and “technology”. It describes the use of technology to deliver financial services and products to consumers. This could be in the areas of banking, investing or anything that relates to finance. Fintech is changing the world of finance for consumers in a myriad of ways. For example, you can now open a bank account over the internet, without physically visiting a bank. You can link the account to your smartphone and use it to monitor your transactions. You can even turn your smartphone into a “digital wallet” and use it to pay for things using money in your account.
In view of this, many financial institutions particularly banks are responding promptly to make the advantages offered by fintech companies. This will enable them to explore opportunities opened by the new ways of doing business and to be bold in opening new ventures. QCRB has become accustomed to dealing with many types of competition and it realizes it has to be more innovative, flexible, and nimble in order to retain its market-leading position. Today, there are two areas where the bank will come under pressure from new market entrants: the financial technology sector (fintechs) and the emerging digital eco-systems.
Majority of the fintechs have focused on the payments and fund transfer industries. This invariably results in the creation of a more efficient and more user-friendly alternative to traditional bank products. Needless to say, these new market entrants have not only created a degree concerns, but also revitalized the spirit of innovation within the banking community.
QCRB believes that it needs to collaborate rather than compete. While recognizing fintechs to bring something different to the table, the bank is acknowledging that they also bring a vast pool of expertise. For the fintech companies themselves, entering into equal partnerships with traditional banking providers like banks is a simple way to leverage synergies and create a stronger proposition by fusing the core competencies of both sides.