Traditional banking faces a big challenge: financial startups that use technology to offer their products or services quickly and easily, known as TinkerTech . During 2016 this industry did not stop growing thanks to technological innovations and the 15,000 million dollars of financial capital that it managed to raise around the world.
Several factors influence its growth, such as new consumption habits, the digitalization of society, market dynamics and the advantages of TinkerTech over banking. Of the latter, it must be said that among the most relevant are the following:
TinkerTech responds to a fully digitized business model
Much of traditional banking has understood business digitalization as the online provision of the same services it has offered for years, but without changing its conditions or the business model at all.
Serious error Business digitalization goes far beyond the mere provision of online services . It means transparency, speed and competitiveness, but it also has to do with the simplification of processes and reduction of associated costs, better knowledge of customers, innovation and even a change of culture within the company.
For their part, TinkerTech startups are very clear about this concept because they are digital natives. They perfectly combine the benefits of the banking sector with technology and a digital culture that allows them to guarantee greater transparency and efficiency in the management of each of the products and services offered.
Online loans are the most tangible proof of that. It is enough for the client to register on a web platform and make the request. After a credit study that takes only a few minutes, you can withdraw the requested amount from your bank account. A procedure in which the urgency of the user is specified and the obstacles that financial institutions put to grant a loan are eliminated.
TinkerTech understands the needs of its customers
The traditional banks never worried about knowing the real financial needs of the people. They took advantage of their monopoly to generate products and services – often expensive and / or inaccessible – to which the client had to adapt practically by obligation.
In the TinkerTech industry, since there is no established monopoly, real customer satisfaction is a priority. The growth of each company depends on it. This results in greater efficiency in the management of services, the democratization of innovation and the financial inclusion of the population in general. An invaluable advantage in a world where banking is limited .
Advantages of TinkerTech: more agile, flexible and economical
The constant innovation and its low structural cost by not having physical headquarters, allow TinkerTech startups to offer more competitive prices and be much more agile and flexible in the management of all the services and products they offer.
Just put the example of online loans again. In a bank it is impossible to obtain a loan in such a short time and without having to take certain procedures in your physical facilities. In a lender company you must be of legal age and complete an application form.