Fintech is transforming the way banks used to work. Payments and financial services are evolving with technological advancement. UPI is now one among the foremost preferred payment methods for both P2P and P2M transactions.

1. Challenges Faced by Banks and
FinTech
Source: Financial Tech Review
Fintech is transforming the way banks used to work. Payments
and financial services are evolving with technological
advancement. UPI is now one among the foremost preferred
payment methods for both P2P and P2M transactions. Online
commerce has become more convenient due to payment solution
companies and their products. While all of those have benefited
customers to an excellent extend, banks are still struggling to deal
with the towering change that fintech has born to.

2. Let us check out some prominent challenges for banks and fintech
to figure together:
Impacting Consumers with a scarcity of Exposure to
Technology
These technical shifts may go wonders for tech-savvy consumers.
But, there’s an out sized portion of the population without much
exposure to technology. It’s utterly important to deal with those
consumers who aren’t well-acquainted with technology. Several
modes of everyday bank transactions could seem complicated to
those consumers. Also, it’s not compulsory for banks consumers to
open accounts as long as they need financial and technological
knowledge. Therefore, fintech and banks may find this as a big
challenge to figure together.
Trust Issues
Trust is some things that take tons of your time to create. Banks
have won the trust of their consumers over the various years they
need operated. When it involves finances, people are reluctant to
undertake something new immediately after it gets introduced by
the banks. It’s often a standard case that an answer provided by
fintech isn’t instantly accepted by many. As an example, customers
still prefer the old-school method of banking over UPI when doing
larger value transactions.

3. Banks May Face Increased Tech Dependency
Over the years, many manual works have shifted to automated
processes. But manual processes still thrive at the core. Some
processes, alongside legacy systems and their regulatory
framework, make it difficult for banks to adopt new technologies.
It’s going to require plenty of effort to implement changes. Fintech
bodies are fully customer-driven. Their motto is to form it as easy
as possible for a customer to perform all their financial activities.
Therefore the partnership between customers and fintech can
cause an entire transformation of how traditional banks work
while increasing tech dependency for the banks.
Now let us check out the issues that fintech can solve:
Security Concerns

4. People are now more concerned about their financial information
than ever before. The safety measures like PINs that were wont to
protect people’s data might not be so secure. For hackers, it’s not
so difficult to guess the four or six-digit number. Fintech is
stepping ahead to unravel security concerns by integrating
biometric security measurements into certain programs. ATMs
now can scan a person’s fingerprint rather than asking them for a
PIN. Other sorts of biometric identification are biometric
identification and voice recognition.
Reaching people that can’t afford a checking account
Few years back only a couple of people had bank accounts. Even
now, a substantial portion of the population doesn’t have a bank
account- the first reason being insufficient money. Fintech can
solve this issue by broadening access to financial services and by
expanding the range of monetary services available. As an example
, instead of requiring a minimum account balance which may be
unaffordable for somebody on a coffee income, a fintech app can
help an individual open a bank account and save whatever they
will afford, like $5 per month.
Access to Investing Being Limited
Fintech has helped people that were traditionally reluctant to take
a position by expanding access to investing. Previously,
investment firms wont to target male customers, ignoring women

5. who may need been curious about investing. Certain apps are
designed to specialize in opening investment accounts and
creating portfolios for patrons who may need been ignored by
brokerages.
News Source:
How Fintech Can Solve Major Problems Facing the
Financial Industry?
Significant Challenges Preventing Banks and Fintech to
Work Together