Writer: Joey Garrand
2 min read April 2021 — Financial technology, or fintech, has revolutionized the banking industry, and its significance has grown substantially as a result of the pandemic. With fewer people going to physical branch locations, more banking is being done online and banks are in competition to provide the most seamless digital experience possible.
According to a report by TechSci Research, the global fintech market was valued at $5.5 trillion in 2019. It is expected to grow at a CAGR of 23.58% during the forecast period. In response to demand for convenient digital services, the increasing investment in technology-based solutions by banks and firms is the reasoning behind this anticipated growth.
“Fintech is now part of our everyday life, part of our regular examinations by regulators, by our auditors, everybody understands that this is it. It certainly has changed the dynamics of banking,” said Frank Leto, president and CEO of Bryn Mawr Trust, in an interview with Invest:. Further explaining the increased focus on fintech and decreasing importance of physical interactions, he added that, “The demise of the traditional retail network was obvious. We just went through six months of proving that you don’t need an open branch to continue to do business.”
Among others, Susanne Svizeny, Greater Philadelphia regional president of OceanFirst Bank, also shared her bank’s prioritization of digital capabilities with Invest:. “We are nimble in staying abreast of new technologies and ensuring we develop products that support our consumer and business clients’ requirements, with a strong focus on our digital capabilities.” Clients want to have access to their banking platform at any time, wherever they are, and they want that platform to be robust yet easily navigable.
However, not all clients are ready to bank from their bed and completely ditch their local branch, “We are always striving to provide clients with convenience because we want clients to bank the way they want to bank. But, there is also a percentage of clients who love to put their eyes on people. They like that feel, that experience. That’s what we are trying to do; a merging, not a separation, of technology and personal touch,” Bryan McCullough, Philadelphia market director of banking at JPMorgan Chase Co., told Invest:.
Fintech is also having an impact on consolidation in the sector, given the need for greater technological capabilities. “There is no doubt that fintech competition is growing and is the reason for some of the consolidation in the banking industry,“ James Whitton, senior vice president and business market leader for Tompkins VIST Bank told Invest:. Mergers and acquisitions allow not only for the combined entities to utilize each other’s technology, but also to combine their funds and offer higher-quality digital resources.
One thing is certain, investment in fintech will continue to remain a top priority for banks as they fight to remain competitive and gain ground in a growing virtual banking landscape. However, maintaining a component of personal touch and in-person availability will also remain important.
The Invest: Philadelphia 2021 Launch Conference on April 8 will feature these four banking leaders along with leaders from the education and energy sectors. It is expected to attract a broad audience of business and political leaders.
For more information and to register, please visit: Click Here