The concept of Fintech or financial technology is becoming quite popular in the public space. As the technology spreads, and we are increasingly choosing to receive daily services through different platforms. Ideally, we want to solve every issue as quickly as possible with a few clicks. This has a significant impact on a wide range of areas, including banking, insurance and investment. The technology mix has a rapid and significant impact on many sectors, and more quickly and significantly than ever. With the new solutions customers can close transactions using a smartphone or tablet, they improve performance efficiency, security and customer experience, reduce costs and save time.
Recently, the opening of a term deposit account entailed multiple visits to the bank, but now this can be done completely remotely – identification, signature of the contract and transfer of money. If a technical solution that combines different systems, such as the State Revenue Service database, the Register of Invalid Documents, etc., is used all necessary checks may also take place automatically.
Every crisis makes people and businesses more and more efficient and progressive. The pandemic is not an exception – the restrictions imposed by it set a tone that made people think intensively how they could sell what they produce, receive services and provide remote education to our children. For example, we started working on SmartDeposit, the Expobank’s online platform for the deployment of term deposits, well before the pandemic, but its introduction coincided with the time when remote solutions and assembly restrictions became extremely relevant. MY forecast for the future is that there will be more and more solutions, and the range of services that can be received remotely at the bank will become more and more extensive. The FinTech solutions that have entered our daily lives as the “new normal” are here to stay – this is a logical continuation of the fourth industrial revolution.
Of course, direct communication with a bank employee – a real, living person – will not go anywhere, although artificial intelligence will also help to address some of the daily issues. It is in dynamic development and will change many of our daily habits over the years. It was the same with the Internet – nothing works without it now, but do we remember our feelings when it appeared? Given that generational trends show that younger people prefer to communicate on different platforms rather than by telephone, the Fintech solutions, where a customer can contact a bank representative in a chat room, will grow in popularity.
It is essential that customers do not have to worry about additional risks when using banking services remotely – everything is as safe as it is when they come to the bank. Both in terms of financial security and data protection. And the term deposits made through Fintech introduced by the bank, as with a traditional deposit, are subject to the Deposit Guarantee Law, which provides that each customer has the right to a guaranteed indemnity of up to 100,000 euros per person if the deposit cannot be accessed.
As regards access to funds, it should be noted that a term deposit differs from a traditional savings account. The customer can regularly add money to the savings account, but the term deposit has a fixed amount for a fixed time and at a fixed interest rate. This means that the customer receives interest at the end at the rate that was in force when the contract was concluded, while the rate of the savings account may change, and also decrease.
Term deposits also contribute to financial discipline to a certain extent, as money is withdrawn by the customer within the deadlines specified in the contract. If the purpose of the funds is, for example, a starting capital for a young person, when he or she reaches the age of 18 or study fees, this is an excellent solution. Of course, if necessary, the customer can withdraw the money quicker, but in this case special bank’s rules must be taken into account.
Given that shopping in online stores and the remote conclusion of different service contracts are becoming increasingly common, financial institutions are also following societal trends. Time is one of the greatest values these days, so if Fintech solutions can save it, it must be done.
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Head of PR and marketing at AS Expobank