Today's Online Payments Merge Security and Performance

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12/17/21, 12:45 PM

Today’s Online Payments Merge Security and Performance | Piroska Nagy-Mohacsi | Technology

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Today’s Online Payments Merge Security and Performance by Piroska Nagy-Mohacsi | Dec 16, 2021 | FinTech, Piroska Nagy-Mohacsi, Technology

Financial technologies, or fintech, are customer-facing digital technologies that ease financial management tasks. Not too long ago, fintech and traditional banking were incompatible. However, thanks to improved cybersecurity and customer demands, fintech and traditional banks are cooperating in ways that enhance the customer experience. Here is how the cooperation works.

Money Management

Think about the processes you normally use to transfer money from your savings account to your bank account. Chances are you use a mobile app to securely access your account. https://piroskanagymohacsi.net/todays-online-payments-merge-security-and-performance/

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12/17/21, 12:45 PM

Today’s Online Payments Merge Security and Performance | Piroska Nagy-Mohacsi | Technology

From there, it only takes a few taps and clicks before your savings balance dips and your checking balance increases.

Decades ago, transfers required a call to the bank or an in-person visit. You had to fill out slips, see a teller, show idenitification, and run through a whole gamut of time-consuming tasks. No wonder so many people used cash. It was faster.

Banks were hesitant to embrace fintech because they had invested so much money in their legacy computer systems. They also invested in brick-and-mortar infrastructure. They followed government regulations and were slow to change, but their customers were not slow at all.

High Expectations

Consumers began to appreciate digital forms of money transfer, especially through companies like Amazon. Credit cards were used online. Transactions were smooth and secure, for the most part.

Customers became frustrated by traditional banks and turned to startups that offered money transfers, deposits and a swift means to access accounts. Banks had to catch up or they would lose customers.

At the same time, fintech platforms had to reduce risk and promise better customer protections. They also had to comply with some government regulations or the companies themselves could be held liable for fiscal malfeasance.

Best of Both Worlds

As fintech grew more sophisticated, so did the people who used the technology. Customers moved away from cash and paper forms. They became accustomed to passwords and knowledgable of ways to keep their identities safe. Fintech became better

https://piroskanagymohacsi.net/todays-online-payments-merge-security-and-performance/

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12/17/21, 12:45 PM

Today’s Online Payments Merge Security and Performance | Piroska Nagy-Mohacsi | Technology

able to encrypt accounts and even government regulators began to set standards for online consumer protection.

Now, government-regulated banks use fintech for everyday tasks that used to be done in person. While some fintech flies below the radar, most fintech has the backing of government and traditional institutions thanks to cooperative and mutual customerservice goals.

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