Technology has always dominated the financial industry. The radical transformation in consumer consumption and behaviour has led to a stark increase in online payments and applications. FinTech companies have identified this business hotspot and they are set to dominate anything related to money, be it payments or core banking.
Mobile and cloud computing have given a push to on-demand finance. The introduction of new online banking and financial products has given the users an ‘easy-to-manoeuvre’ platforms for completing transactions within a few clicks on their mobile devices. The numerous options have spoilt people for choices and have practically distanced them from the bureaucracy of certain traditional financial services. The digital-banks counter all the problems of a brick-and-mortar bank, i.e., long queues that test customers’ patience, paperwork, time-spent on travelling and availing services, etc.
The financial services industry has gained traction because of Blockchain. Banks play a major role in the exploration of this technology, especially in the field of Small and Medium Enterprise lending, risk management and operation efficiency. As the banks are under national pressure of supporting SMEs, blockchain solutions will be leveraged to mitigate risks and reduce costs.
With the development of open banking, there is a huge growth potential for cybersecurity in the banking sector. When opening APIs to third parties, banks will need cybersecurity solutions to protect their own data and assets.
AI and ML
Big Data, Artificial Intelligence, Machine Learning, etc., have made a huge impact on various industries. It has become easier for companies to handle massive amounts of data generation and processing with the arrival of Big Data. With AI being omnipresent across multiple channels, FinTech companies are looking to combine the power of both – to deliver better services and experiences to their users through personalization.
Chatbots are AI-powered bots that replicate human interactions. They have access to the internet and depending on the question asked, chatbots pull out specific information. With the FinTech industry being prone to queries and questions from potential leads, new customers, existing customers and others, chatbots are the way forward to save time on redundant tasks and use manpower to focus on niche tasks.
These trends provide exciting avenues for innovation and many FinTech companies are using them to their advantage. NBFCs and many FinTech companies will go a long way in improving the financial inclusion. And that will be the all-embracing trend for FinTech in the near future.