How fintech is disrupting traditional banking

fintech is disrupting traditional banking

Financial technology or fintech has thrived today, how fintech is disrupting traditional banking. This is an interesting question because the development of technology often displaces old technology.

Citing speech from Vikram Pandit, CEO Orogen Group of New York-based Investment Companies said: jobs banks 30% will disappear within  5 years next.

Fintech’s (financial technology) drive towards financial inclusion has actually been felt since a number of recent periods.

People who have not been able to access finance in banking, currently helped by fintech support based information and technology.

The rise of the use of Fintech services in the midst of the community cannot be separated from the spread of technology that is now familiar to the community itself.

The application of technology in the financial world will change the pattern of transactions going forward.  On the one hand, the use of this technology will provide benefits through increasing efficiency and expanding financial services.

However, on other edges, the development of fintech also needs to be anticipated well, so unexpected thing can be anticipated.

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Effect of financial technology on banking

Looking ahead, the flow of fintech big waves will be felt in the world of banking jobs with illustrations as follows:

Customer Service

Every time you enter all banking channels, whether it is a cash office, sub-branch offices, main branch offices, and headquarters, customers will be welcomed by security and customer service officers.

Almost every bank uses 1-5 customer service personnel on each channel, adust to the needs of each channel. Inevitably, the biggest service that can be seen every day on the banking channel is Customer Service.


Now with high financial technology, the Account opening is easy, just download an application in google play store then filled data.

Teller In general, the services provided by tellers include deposit and withdrawal of cash.

Most jobs for tellers already take by Fintech, with ATM, or automatic teller machine, and cash deposit machine(CDM).

Back Office is to check and ensure that the transactions carried out by the teller are correct and appropriate, as well as making the company’s books from day to year. because already use a machine hence this job also will disappear.

Funding & Financing/Lending Officer

Lately, fintech P2P (peer to peer) lending and Crowdfunding services have been lively. Peer-to-Peer (P2P) is a system (platform) that brings together lenders (creditors) with borrowers (debtors). In P2P, the money borrowed is also subject to the charged interest per month.
In practice, P2P lending activities are carried out online. Lenders and borrowers do not meet each other.

Fintech with Fast Growth

Technology-based financial service providers, or often referred to as fintech, are increasingly showing their fangs in global and local industries. Many startups engaged in this field are competing to initiate fintech which is widely appreciated and needed by the market.

If you are interested in taking part in it, here are some fast-growing financial technology.

Trade and Investment

Generally, they rely on a sophisticated algorithm system to control trade and investment that is managed automatically. This automated platform provides big savings for users and offers easy financial planning services for large investors.

Even so, novice investors can enjoy this fintech service because there is also space that provides small capital to start investing.

So it’s not surprising if this fintech service becomes a kind of threat that means a lot to brokers and traditional financial advisors because it can be accessed very easily, efficiently, and the most important thing is, of course, smarter in mapping your financial problems.


Every person, be it small, medium, or large entrepreneurs, must need a loan to increase the value of their business. A new form of banking has emerged in the form of technology that allows and offers alternative sources of financing. The platform that relies on this algorithm engine can be relied on to save your finances and business, save a lot of time, money, and help open access to credit.

This fintech service promises easy, fast and inexpensive credit services to borrowers that cannot be overcome by the bank. Of course, this fintech service is perfect for those of you who want to develop an anti-mainstream or other unpopular research business.


Equity and crowdfunding platforms provide alternative investment sources for individuals who want to start their business. Platforms such as online crowdfunding will collect a sum of money or funds from several individuals who will collectively fund less attractive projects in the eyes of traditional banks or other large companies.

Of course, this is a new revolution in the world of capital and allows ordinary business people to develop their pilot business.
But crowdfunding is not only limited to business capital but also includes human values such as medical financing, housing construction.scholarship.etc.


Technology related to the payment system has changed the way we to do activities banking, transfer money, paying for goods.

Of course, this is also driven by the presence of smartphones, contactless technology, and technology that allows us to transact digitally. These new financial products make payment easier, faster,  and direct to a payment system without cash.

In the near future, no longer need large wallets that hold a lot of bills, piles of a credit card.


This technology will create a system that is safe, decentralized, anonymized, and tamper proof & unchangeable, unlike banks, brokers, or other brokers who store personal data. You also don’t need a bank to simply transfer or store your personal account.

That is why the blockchain can be a joint threat to other companies and industries. The potential impact of the blockchain is considered more revolutionary than the invention of technology like as telephone, printing machine, internet.

Personal Finance

The new generation fintech is developing a personal financial system more sophisticated, smarter, more affordable and more transparent.

Mobile applications and various platforms now available helped individual to develop business,budget, file taxes, invest, and even look for loans.

Not only that, but they are also able to track daily expenses, and help users to overcome the financial situation being faced in real-time. The aim is to improve financial security and literacy.

Money Transfer

For you who like to travel abroad, one of the obstacles that you have is the problem of currency exchange.

Moving and exchanging money internationally often make emotion appear because it needs time and quite expensive.

But currency exchange and money transfer companies are developing innovative platforms that make this process even simpler, faster, easier, and of course cheap.

From peer to peer money exchange that will reduce the cost of currency exchange, to smartphone-based money transfer and platforms.

Allow more effective money transfers for people who make transactions and transfer money to another country.

How fintech is changing banking

The rapid development of technology in the financial industry has greatly changed how the business map of the banking sector and other traditional financial institutions.

One example of developing fintech is Paypal. With Paypal, it is very easy to pay abroad, if there is no Paypal, it will be difficult to buy goods from abroad.

Another example is the use of Skrill, Perfect Money and so on, this is the result of Fintech which is an alternative payment other than traditional banks.

Here’s how Fintech and other financial technology companies will change the financial industry in the next few years:

Real-Time Payments

One prominent expert who is the CEO of Fig Loans, Jeff Zhou, predicts that real-time payments will quickly improve customers’ ability to manage their cash flow and account balances.

Usually, payments via bank transfer require three days of funds being deposited effectively into the recipient’s account. This can confuse the customer if they have to skip the process that should have been completed quickly and then be slow.

The result is a much longer time to avoid expensive overdrafts and costs for repayment.

Financial Products Less Than Five Stars Will Go Bankrupt

Another expert who is also Mylo’s Founder and CEO, Phil Barrar, predicts that financial products with a rating of fewer than 5 stars will go bankrupt. Today’s modern users want simplicity and ease in using the product.

But traditional banking is still notorious for transferring products that meet these expectations.

Fintech develops new innovations that focus on setting higher standards for user experience in terms of financial experience. Therefore we will see Fintech companies create a simple and easy user experience for their customers. By prioritizing speed and no friction and making searching for financial services and products more fun and easy.

Artificial intelligence

Matthew Cooper, CEO of EarnUp, predicts that the future of the financial industry will use artificial intelligence to help consumers. Artificial Intelligence will be used to help find the best payment schedule.

Offering consumers new products that suit them, improving existing products, increasing the operational efficiency of business processes, and pursuing new discoveries that offer innovative business opportunities.


Blockchain will play a greater role in B2B (Business to Business) transactions. Helcim’s CEO and Founder, Nicolas Bezique predict P2P (Peer-to-Peer) or B2C (Business to Consumer) transactions that will use blockchain technology. This will be a B2B transaction between a trading partner and a bank network.


That is a number of financial technology that is growing rapidly and is mandatory for us to learn. We must be able to advance technology as well as possible because, in addition to facilitating us in conducting financial activities, this increasingly developing technology will swallow us if we are not able to master it.

The development of financial technology has an impact on the behavior of modern human lifestyles.but also causes competition business.

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