- Fintechs can help banks enhance customer experiences, achieve compliance, expand services
- They can lure away customers with lower fees, disrupt revenue streams, fragment financial services
Bankless Times talked to Nikolay Denisenko, the co-founder and CTO of Brighty app, a Swiss neobank that combines convenient crypto functions with fiat financial services.
What is your take on the digitalization of the finance industry?
The finance industry’s digitalization brings efficiency through automation, improves customer experience with online services, fosters fintech evolution, and provides valuable data insights. However, challenges like cybersecurity risks and regulatory adjustments need attention.
What are some of the ways fintechs can benefit banks?
Fintechs can help banks enhance customer experiences, achieve compliance, expand services, and quickly adopt emerging technologies. Collaborations with fintechs can provide them with a competitive edge, help them reach new markets, and avoid becoming obsolete in the long run.
Can fintechs be damaging to bank activity in some way?
Yes, absolutely. Fintech can be damaging to banks in a number of ways, such as intensifying competition, luring away customers with specialized services and lower fees, disrupting revenue streams, fragmenting financial services, and potentially triggering stricter regulations. This will be especially relevant when regulators start to perceive fintechs as a risk to overall financial stability.
What requirements should central bank-issued digital currencies fulfill?
CBDCs should enable security, privacy, accessibility, interoperability, stability, user-friendliness, fast transactions, resilience, scalability, cost efficiency, and transparency.
Is collaboration between banks and fintechs a good option for consumers?
Yes. It can foster better customer experiences, access to new services, financial inclusion, personalization, and faster technology adoption.
Is it possible or feasible to transition from traditional banking to purely digital banking?
Transitioning to purely digital banking is possible and feasible due to recent technological advancements, such as providing services that used to be reserved for traditional financial institutions, like consumer preferences or cost savings.
How is consumer trust best earned in the relatively new fintech industry?
Earning consumer trust in the fintech industry involves proving your transparency, security, and regulatory compliance. One needs to focus on building user-friendly platforms, social proof, ethical practices, data privacy, consistent performance, partnerships, and clear communication. These strategies demonstrate credibility and commitment to customer needs.
Does crypto regulation have any effect on fintech companies?
Yes, crypto regulation has a substantial impact on fintech companies. It affects their operational compliance, market entry, security practices, cross-border transactions, and legal risks. Fintech companies must navigate evolving regulations to ensure compliance and successful operations in the cryptocurrency space.
What do you think is the best approach to crypto regulation?
Developing effective crypto regulation involves engaging diverse stakeholders like crypto users, researchers, developers, service providers, and industry representatives while also understanding blockchain technology, which is challenging to many lawmakers.
