An analysis of modern banking trends shows that about two billion people in the world do not have access to financial services due to lack of credit history, limited access to transfers or low level of financial literacy. Fintech companies are helping to significantly overcome these challenges in the banking industry. Modern FinTech initiatives are successfully closing the trade gap through institutional funding and rethinking the customer experience through digital solutions.

The most effective FinTech initiatives recently were:

• The Digital Negotiable Instruments Initiative (DNI), which digitizes promissory notes (B / E) and promissory notes (PN) based on a combination of electronic signature and advanced document management technology, which allows to create an electronic payment enterprise (ePU);
• The Sector-Level Trade Finance Distribution Initiative (TFD), promotes the global distribution of financial resources in trade through open membership for both banks and non-bank financial institutions;
• Technology Experts for Regulatory Actions (TERA) – created to assist global membership in their efforts to promote trade digitization regulations by digitizing trade documents, bills of lading, and negotiable instruments.

FinTechs movement activates the latest technologies in the banking industry. Banks have advantages but also disadvantages that make the adoption of technologies a slow and ineffective process. They lack an entrepreneurial approach and have a complex legacy IT system. In contrast, FinTech companies are flexible and can run complex operations virtually with the help of technological advancements. In addition, FinTech startups improve the quality of bank customer service, help debureaucratize the regulation of financial markets, and ensure uninterrupted cooperation between different sectors of the economy.

As a result, the future of the banking industry will be based on business models of cooperation between banks and fintech firms, which will intensify the use of new technologies and form a new era of banking standards.

At PayCompliance, we have 18 years experience of supporting the success of payment institutions across 6 countries. Our customized AML and ATF compliance services help you meet FINTRAC requirements as a Real Estate broker, sales representative or developer.

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