How FinTech is transforming the finance industry in India?

FinTech - Financial Technology

Financial Technology abbreviated as FinTech, uses the software to provide various financial services to the companies. FinTech companies usually are created to disrupt the existing financial models to provide great services to its customers all the time.

There are many larger companies also incorporating software solutions models in its operations that can improve the financial services offering in the future.

The prevalence of FinTech has also been increased in the past few years and has now become a multi-billion dollar industry.

In the previous few decades, the growth of India is increasing rapidly and now it has become one of the fastest growing countries in the world.

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Most of the organizations are now insisting their bodies to introduce the new technologies. For financial organizations, it has become a need to encounter the world in this technological era.

Most of the accounting functions now have been like never before. Earlier, the traditional approaches were enough for the transaction work but with the time, expectations have also been changed that have now become higher.

It has also been assumed by the business owners that efficiency can be increased with the automation and it can also reduce the cost of the organization as well. It has also been made a tool for them for the transformation in the financial sectors as well as to capture & dominate the market.

Fintech (Financial Technology) has been utilizing in the Indian fiance industry to re-create the dynamic operations and methods. We should also know that the digitalization is not the replacement to the conventional system but the utilization of technology to make the present system or services better and better.

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Many financial firms are tackling all sorts of things beyond their buttoned-up stereotypes. For example; hosting of hackathons, and diminishing formal codes rules.

In the year 2018, there were many financial technologies startups came into effect. The industry has been relying on the Fintech trends in future as well.

Here we’re going to discuss the foremost trends of the Fintech:

Biometric:

It has been assumed by some sectors that Fintech is not impermeable from cyber attacks because security is on the top priorities of the financial institutions. So a team of Fintech is trying to implement a new model for future so that security can’t be challenged.

It has started implementing the biometric technology that can curb frauds because it is one of the most secure authentication processes of the customer to recognize its security.

Customers will also get rid of remembering the password or pin that usually have been forgotten.

Blockchain:

Fintech has been proved a boon for the blockchain technology that doesn’t need any paperwork.

Cryptocurrency has also changed the way of our transaction and financial sector as well.

Fintech has made the process of verifying the identity and credit applications easier. Most of the North Americans are now applying the blockchains process for the transaction because of the blockchain campaign which is more powerful there.

Most of the European banks are also encouraging for the blockchain payment and the number of the blockchain transactions may become huge in near future.

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Automation:

Some experts believe that business is not only to provide just the product or service but it’s more than that.

In the competitive world, you should know that automation provides companies, the opportunity to expedite key processes and provide customers, more efficient service in a very short time.

This is drastically useful for the Fintech innovators that have to offer great services to the customers.

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The stat of connected devices is constantly increasing and regulatory technology has detected know your customer (KYC) and anti-money laundering software embedded with artificial intelligence pop up in the past few years.

Fintech innovation will continue to grow for the upcoming years as well because most of the companies see the Return On Investment (ROI) with the Fintech.

Digital banks:

The mode of payments has been changing drastically and after the rise of cryptocurrencies, it has completely changed. However, it doesn’t mean that the bank is encouraging to use the cryptocurrencies like Blockchain everywhere but banks are promoting for the paperless work.

The most significant thing to be considered for the Fintech is its physical location that doesn’t have a specific one and no branch exists. With digital banks, customers can avail all the banking services from his/her home without visiting the branch.

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Advantages of FinTech:

Fintech has changed financial filed for everyday people where most of the services used to access by the rich people earlier. It also shows the growth of the financial industry was incomplete without the Fintech.
You can also understand that the inclusion of new technology has only the capability to capture and process data in real-time. It shows, how business & products are convenient to manage all the time especially in a start-up and also how consumers are engaging with this process.

Technology and data are making it manageable and cheaper to get investment guidance to the crowds and it has been as earlier when it was to a critical asset level but now is open for everyone.

Here, we’re going to give you the best advantages of Fintech that completely changed the business scenario in present days:

Smart decisions:

Fintech helps the companies in compiling the data of customers to check their financial history, risk factors, credit reports, and others. Thus it makes able the banks to take the lending decisions for its customers in a quick and efficient manner.

There are various analytics tools and IoT sensor that could help the financial sectors or banks to check the creditworthiness, and give great offers to their customers.

Real-time data gathering:

Like the Internet has enabled people to explore anything around the globe, Fintech has also made the companies smart by allowing them to evaluate the registered property is especially beneficial to firms and consumers both.

Accurate monitoring can assure fair policy pricing and specific applications as well.

Exceptional client services:

The banking sector in India enabled with the IoT smart solutions that make able the banks in personalizing the consumer experience. With the help of Fintech and IoT, people can do transactions through their mobile phone or tablets easily anywhere.

It also speeds up the services providing customers, better security where the bank could install sensors on-site connecting the Fintech app to give the identification of the customers.

Powerful Communication:

Fintech helps the banks in improving the traditional financial services and also promotes incorporation of innovative new products and services.

Thus it increases the trust of the customer on the bank and hence increases the great communication between these two.

It also helps the other sectors of the economy that it has also become an important part of the plan to manage the transitioning future economy.

FinTech Growth in India:

Fintech has changed our economic preparation and assistance nowadays and expected the same for the future.

Many of the Indian financial companies and startups have been started taking adoption of the Fintech rapidly and their exceptional digital journey has been started now.

The year 2020 will be a game changer for the financial sector in India because the market of Fintech has been expected to double as today is $1.2 billion!

The innovation of Fintechs is providing the services at a far lower cost so there are many financial firms that are seeking to bring Fintech into their ecosystems and operations. Getting collaboration is an accurate mindset to adopt the Fintech successfully.

FinTech in Banking Sector:

It has been deemed that the digital revolution in the banking industry is under developing stage. But the digital disruption has a capability of diminishing the role and significance of today’s bank after grooming.

Digital payments are also better, faster, cheaper that leverage bank from a more crucial part of everyday life for companies as well as individuals.

Most of the Fintech companies are now contributing inherent, mobile, cloud-based, and responsive banking services to the customers all the time.

Banks are starting to embrace openness with collaboration, and making smart investments and it’ll give them a great result.

Conclusion:

The true challenge in the banks and financial sectors has been to introduce the new technology ever that can be made feasible for the customers. And also technology is the way that can affect any sector by improving its business model. FinTech is one of the most demanded things in the financial sectors.

The international, national, and regional companies want to become a partner of any Fintech company. The reason behind it is simple; to make the transaction easier and providing a great experience to their customers!

Let us know what you think about ‘Fintech‘, in comment section below.

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