But, the majority of customers still choose more traditional financial institutions. Fintech, although making a technological revolution, has some issues and challenges ahead of itself. Some of the bigger problems are lack of trust, low transparency, security breaches and certain customer habits. In this article, we will review these problems in detail and try to figure out how to overcome them.
Because of this, even large reputable institutions, such as national credit bureaus and leading Forex brokers, might suffer from data leaks. That was the case with Pepperstone, a leading Australian brokerage whose customer data was stolen in August 2020.
However, digital transformation makes companies more dependent on their software products, shifting focus to Fintech innovations and development. Some purely technical factors start to make a huge impact in business, namely:
- Quality of application code, its flexibility, maintainability and scalability;
- Overall performance of the system;
- UX design and quality of customer-facing features;
- Security and scalability of infrastructure;
- Software development and bug fixing speed.
As the world becomes more and more digitalized, there is more and more untrekked ground in regard to the safety of an individual’s privacy. While businesses widely benefit through the adaptation of fintech, there is left behind the question of the individual. In the case of the elderly who already have a distrust of technology, fintech isn’t as attractive to them. While all ages of people may experience distrust in fintech, the elderly lack knowledge in the logistics of the safety algorithms. They are just more likely to stick with what they know. In a digitalize world though, this can hurt the elderly who already struggle with complex financial issues and the burden of aging.