Fintech is seeing an unprecedented rise in today’s day and age. It stands directly alongside traditional banking, evolving every single day to meet customer needs that didn’t even exist a few years ago. In less than a decade, our country has seen a transformation from cheques and bank tellers to more modern payment methods. Changes that are paperless, and now even wallet-less. We are also moving into a time where we need not carry our cards to complete a payment transaction. All one needs is a mobile phone with an internet connection to complete any transaction. Fintech has also revolutionized money transfers across the whole planet. With more and more neo-banks popping up, fee-free exchange of foreign currency is now possible. All these developments in their nascent stages, are promising for various fintech developments in our country. While the future seems bright for fintech solutions in India, it is bound to revolutionize further. Let us look at a few of the emerging trends to watch out for:
Payment innovations are happening every single day. We’re seeing contactless payments, mobile payments, mobile wallets, and interfaces that couldn’t have been conceived a decade ago. While the millennials are giving up on going to a traditional bank to process any financial transaction, the Gen Z will be the first generation to have completely cashless transactions. With mobile transactions ramping up more than the $1 trillion value in 2019, this future is bound to hit us sooner than anticipated. Additionally, technological companies that have never been in the payment space are making pathways for themselves, by offering various add-ons. This can be seen through the likes of Google, Apple Tencent among other big tech organizations coming into this space. Moreover, the effect of the pandemic is evident wherein various fintech solution providers in India are building new technologies making upcoming payment innovations both exciting and rewarding.
Personalization in today’s day and age is a boon. And enough marketers have already spoken about the need for hyper-personalization to keep existing customers intact and attract potential customers. With existing technologies including the likes of big data and AI, firms have data and insights making hyper-personalization possible at mass scale. Thanks to this data, fintech service providers have the requisite data about their customers’ behavior making them customize their offerings based on the requirements. An amalgamation of AI and big data provides a personalized experience, influencing the financial market to a scale that was never seen before. Owing to its unprecedented influence, AI is also expected to reduce the operating costs for banks by 22% by 2030, making it a trend to watch out for.
The blockchain technology in India is still at its very nascent stage, yet the potential it holds cannot be ignored. It holds the potential to change the face of financial transactions across the globe. Its decentralized and distributed nature of working makes it the ideal way to conduct financial transactions. It also holds the potential to be an efficient mechanism that is free from identity theft or frauds, saving billions of dollars every year that succumb to such malpractices. At the very moment, the US and China are leading the way by conducting the maximum number of transactions using blockchain technology, with various other countries still being skeptical in adopting it. While bullish investments have increased the reach for the technology, regulations must still fall in place for its widespread adoption.
In a way, that was never predicted before, the pandemic paved the way for digital-only banks to thrive. While this is a significant moment in the fintech revolution in India, one must also pay heed to the numerous financial regulations that are in place which could make it difficult for numerous players to enter the digital-only bank space. This development has led to a trend that no one has anticipated before. Numerous established financial institutions and banks are looking at technological innovations to reach a wider audience and instead of splurging money into developing their own technology, these institutions are tying up with fintech service providers to pave a new chapter in the financial landscape. Numerous big players that include the likes of Goldman Sachs, Visa, and PwC have collaborated, promising an exciting future for numerous such collaborations.
In a country like India, fintech service providers intentionally and unintentionally broke down barriers that had been ingrained in the Indian financial landscape since time immemorial. By offering benefits to consumers directly, fintech solutions in India integrated numerous socioeconomic elements that have always used cash for financial transactions. India also stands as a testament to how proper planning facilitates fintech service providers to help the marginalized. Fintech powered solutions when coupled with telecommunication services in a country like India would reap unprecedented results, assuring and expanding financial inclusion and independence.
The aforementioned 5 trends just mark the beginning of how fintech is bound to revolutionize our lives and the financial sector as a whole. From easy access loans, payment gateways, hassle-free transactions to e-commerce, the rise of fintech solutions in India are just bound to rise. More so with fintech solutions reaching new corners of the country, the likelihood of fintech shaping the country’s economy in the future is rather evident. Your business should not be left behind. Get in touch with us to learn more about our new age Fintech API solutions.
