How Fintechs Have Transformed Traditional Banking

The rapid growth of fintech companies—digital businesses operating within the financial sector—over the past decade has forced traditional banks to evolve at an unprecedented pace.

As customers became accustomed to the speed, convenience, and innovation offered by these new competitors, banks had no choice but to adapt in order to retain their market share.

In the end, the biggest winners have been consumers, who now enjoy a wider range of features, better service, and greater cost savings across the financial system.

After all, fintechs are everywhere today, from online betting platforms such as Bizbet to faster everyday payments for small purchases and transactions between friends.

In this article, you’ll discover how these companies have reshaped the banking sector—and you may even uncover some benefits you didn’t realise were available to you.

Easier Access to Investments

At the start of the century, investing was largely limited to wealthier individuals with strong financial knowledge.

Today, investing is far more accessible to the general public—and fintechs have played a major role in this shift.

To establish themselves in a competitive market, many of these companies targeted new investor audiences rather than focusing solely on high-net-worth clients.

As a result, they began offering educational content to help customers understand how investing works, significantly expanding access to financial knowledge.

At the same time, the process itself became far simpler. Instead of visiting a physical bank branch, speaking to a manager, and completing complex paperwork, people can now invest directly through mobile banking apps in just a few taps.

This convenience has encouraged many individuals—who once believed investing was only for the wealthy—to start building savings and working towards long-term goals.

Traditional banks have followed suit by expanding investment access across a wider customer base.

With more financially informed users in the system, both banks and customers ultimately benefit.

The Rise of Loyalty Advantages

In the past, premium credit cards with perks such as rewards points and airline miles were typically reserved for high-income customers.

Digital banks disrupted this model by offering attractive loyalty cards to a much broader audience as a way to lure customers from traditional institutions.

Today, many users can access these benefits without even providing proof of income—sometimes simply by investing or holding funds with the bank.

Alongside this shift, online content discussing loyalty programmes has surged, enabling more people to understand how to use points, cashback, and perks to travel for less or even generate extra income.

Loyalty programmes are now common across multiple industries, including restaurants, online retailers, telecom providers, and even betting sites and online casinos such as the Bizbet App.

Fintechs have not only transformed traditional banking in this area but have influenced how rewards are offered across entire sectors.

Faced with growing competition, established banks were compelled to extend premium card benefits to a much wider customer base to avoid losing users to digital rivals.

These benefits often include:

• Free access to VIP airport lounges
• Points earned on every purchase, redeemable for flights and products
• Discounts at partner restaurants and retail stores
• Cashback credited directly to monthly card statements
• Cashback on purchases made with partner merchants

Changes in Customer Service

One of the defining promises of digital banks from the outset was fully online service, eliminating the need for long queues at physical branches.

This model quickly gained popularity among customers who were tired of waiting for in-person assistance.

In response, traditional banks invested heavily in mobile applications, allowing customers to carry out most transactions remotely while also offering faster online support channels.

App-based banking is now firmly established and unlikely to be reversed.

Customer service, however, has entered a more complex phase.

While automated chatbots and AI-driven support improved efficiency, dissatisfaction with impersonal service and difficulty reaching human agents has led some customers to return to traditional banks that still prioritise face-to-face and human support.

This highlights an important shift: while technology drives convenience, personal service remains a key factor in customer trust.

Global Digital Payments: Key Data

It comes as no surprise that fintechs have left a lasting mark on the global banking system. Digital payments are now fully embedded in everyday life and show no signs of slowing.

According to data from Statista:

With nearly 4 billion people already using digital payments, continued transformation within the traditional financial system is inevitable.

Beyond standard digital payment methods tied to national currencies, new financial technologies have also become firmly established.

The most prominent example is cryptocurrency. Emerging with Bitcoin, cryptocurrencies have gradually overcome early scepticism to gain recognition as a legitimate investment class.

Their price volatility can be dramatic, but for many investors, this also presents significant profit opportunities.

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