Technology is constantly evolving, and the banking and finance sector are trying their best to keep up with the exciting potential these innovations offer. The world of fintech development is now abuzz with novel applications, and Indian financial institutions are ready to jump on the growth bandwagon. Let us look at some of the latest fintech developments that have kept Indian institutions on their toes.
Digital Currencies For The Win
Digital currencies have been in circulation for almost a decade now, and while the techies swear by them, the common man continues to remain apprehensive about their validity. Moreover, the fact that most countries, including India, do not have clear legislation regarding their use has added to the apprehension. With institutional investors entering the digital currency space, it is likely that fintech leaders are now throwing their weight behind crypto and digital currencies. As a result, it is expected that fintech companies worldwide will start doling out products based on digital currencies.
Mobile Payments And More
One change we noticed during the COVID-19 pandemic is the sudden rise in the acceptance of mobile payments. Mobile payments are now accepted across the economy, from street vendors to large organizations. Moreover, with the introduction of UPI and the unification of digital payment platforms, Indian fintech companies have been keen to build on mobile payment systems. Some of the famous visionary leaders of India, like Sanjiv Bajaj, the Chairman and Managing Director of Bajaj Finserv, refer to this as a welcome trend.
The Age of Biometrics
With mobile banking and digital transactions taking center stage, the one challenge that many economies have experienced is a rise in scams, fraudulent practices, and phishing. Most banks, NBFCs, and financial institutions have used biometric authentication systems to counter this challenge. In addition, fintech innovations have made it possible for mobile apps, ATMs, and POS to use biometric data for enhanced safety and security of authentication. The age of retina scanners, fingerprint recognition, and other biometric authentication has truly arrived. This is one trend that financial institutions must ride to make their systems secure for their customers.
Customer Experience Is King
With banking and financial institutions and products mushrooming across the globe, the key differentiator that will set the market leaders apart is, indeed, customer experience. This term no longer refers to in-branch customer satisfaction but to using smart and intuitive technology such as AI bots, speech recognition systems, digital payment advisers, etc. to understand personalized needs and provide solutions. These help banks and financial institutions analyze huge volumes of data and develop accurate analyses to help the institutions and end customers. Machine Learning backed systems are the latest fintech trends to watch out for.
Banks Vs Brands
With more and more people worldwide identifying with brands such as Apple, Google, and Amazon, the relevance of traditional banking is now in question. We are far from transitioning to a completely digital banking experience, but Neo Banks with a digital-only presence are here to stay. Their ability to leverage technology like AI and machine learning and the excellent customer experience makes them a hit with the newer generation. Fintech market leaders like Jitendra Gupta, the Founder and CEO of Jupiter Bank, are predicting a phenomenal rise of neo banking in the country.
Blockchain is the future of transparent, secure, and large-scale DLT (Digital Ledger Technology). In 2022 we are seeing an increase in the adoption of blockchain-based technology by financial institutions like SEBI. This is definitely a trend to look out for in the banking and fintech space. With more such technology being put to use in the finance sector, we are likely to witness an increase in transparent record-keeping, reporting, and monitoring of finances. Global fintech leaders like Marc Kenigsberg are backing blockchain tech, and Indian entrepreneurs are not far behind.
It is in the nature of technology to bring about smarter and more intelligent processes. Indian banks and financial institutions are waking up to a new world of possibilities with fintech innovations. The timely adoption and large-scale implementation of these will not only benefit the finance sector but will also bring great benefits to the untapped rural markets of India.