However, it is difficult to imagine a world without banks. They have been integrated into our everyday lives. Our everyday lives and businesses could stop without banks.

Fintech, technology-based financial services, provides several banking services that can compete with banks. Fintech is also regarded as a disruptor to banking. Some fintech firms have succeeded in acquiring customers. Some banking customers have also migrated from banking to fintech.

Yet the capacity of fintech to disrupt banking is limited. Fintech is an infant industry and needs considerable time to prove that its services are as good and secure as those of banks. Regulations limit the nominal value of transactions through fintech platforms for security and customer protection reasons.

Banks can fight back and try to excel in this competition by adopting open banking using Application Programming Interface (API) technology, digital banking and other strategies.

Future financial customers will be tech savvy and keen to have simple, fast and cheap services. They are millennials who are eager to have more personalized services. They feel that they have to be understood by financial institutions, not the other way around.

The reason for the establishment of fintech is the notion that the intermediary function is expensive lacks the capacity to serve customers’ needs. The products and services issued by financial institutions are mass products, except for personal banking, which serves high-net-worth individuals.

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