FinTech Financial Institutions Are Shaking Big Banks

FinTech financial institutions use technology to offer financial services that keep costs lower and it’s no wonder Internet-only operators like EQ Bank can offer to pay high interest rates on its savings account.

The EQ Bank high interest savings account just works like a regular checking account that can do all the necessary jobs of a checking account, but it gives you high interest on your deposits plus additional features for free.

Let’s take a look at some of the features available for free:

– High interest, which is currently at 2 percent

– No fees whatsoever

– No minimum balance required

– Unlimited transactions

– 5 free Interac e-Transfers® each month

– Neat smartphone app

A CBA (Canadian Bankers Association) survey shows that only 13 percent of Canadians are using branches as their main banking method and 55 percent are doing the majority of their banking online. FinTech financial services such as Borrowell, MOGO, EQ Bank, and so on are putting a dent in traditional banking services and all Big Banks are keeping a close eye on the market.

Instead of just researching and collecting data, some big banks have already refused to sit idly doing nothing and started taking action. For example, TD started a partnership with Moven for mobile money management tools and CIBC started a partnership with Borrowell to deliver digital borrowing experience. Other big banks are also working on similar projects.

As the Internet and technology are making lives easier with lowering costs, you will see more and more Uber-like entrants in the financial sector, disrupting big banks and the way they provide services and collect fees. Consumers are on a solid path to benefit from these disruptions.