We are sailing into a technology-driven economy and this shift to digitalization in the banking industry is not new; factors like customer satisfaction, competition, and changing regulations have always kept the banking industry on its toes. 

Today banks are working towards a digital future, and the pandemic has created the environment to demonstrate what is possible. It has spurred financial inclusion and driven a large increase in digital payments across the globe. 

This has benefited the new-age startups as they can now enjoy all banking benefits at their fingertips. Recently some banking trends have popped up in the financial field.

Let’s understand the game-changing banking trends startups should know about:

1.Tech-first banking: for innovation driven businesses

 Business banking has evolved to accommodate the demands of fast & agile businesses who  want to enjoy on-the-go banking. Technology driven banking comes with easier  accessibility, better security mechanisms, lower charges, no hidden fees and more transparency making tech-first banking the only way to bank. 

2. Fintech + banks: a revolutionary collaboration 

This collaboration holds immense potential as India moves towards a truly digital age. n With fintech companies offering seamless front-end services like fund collections, customer acquisition, advanced servicing, marketing, customer support channel, payment management, etc. and back-end operations like monitoring of accounts and administration has been ever increasing. 

Advanced features like smart dashboards, instant payment methods, automated payroll, quick tax and vendor payments etc have been a major game changer for fintech firms. Fintech startups have redefined financing and have made a special place for themselves in the banking ecosystem.

3.Neobanking: Banking for digital natives 

Neobanks cater to the Tech-savvy customers who want everything at their fingertips,  they are becoming increasingly popular amongst founders and business owners as they are more customer-centric offering more personalisation and AI enabled data insights which organisations can use to make data-driven decisions. Moreover, since neobanks don’t have physical branches, they can also offer attractive interest rates, lower fees etc thereby making themselves the natural banking choice for tech-savvy businesses. And can afford this because of the nil overhead costs of running physical branches.

Smart Dashboards, instant payment options, easy Vendor payments, quick tax payments and so much more are being offered by Neobanks today.

Supercharge your banking experience with RazorpayX. Get onboard with a supercharged banking experience armed with a collateral-free corporate card, compliance-ready payroll in 3 clicks, one-click Vendor Payment & so much more.

4.Blockchain

Blockchain technology has been around for quite some time now. Blockchain is a fixed ledger that enables the process of keeping a track of transactions and assets in a business curriculum . Record-keeping systems can be vulnerable to fraud and cyberattacks. Limited transparency can slow data verification. The arrival of IoT have resulted in explosion of transaction volumes. This in turn can have an impact on the bottom line which means we need a better way. Enter blockchain.

The prowess of this technology is detecting fraud, speeding up transactions, eliminating intermediaries, peer-to-peer lending, and improving transparency, building greater trust and security and that is something banking and financial institutions must be watchful of. 

5.E-RUPI: smart alternative to traditional credit disbursal systems

E-RUPI is the contactless and cashless solution for digital payment launched by RBI. The idea behind E-RUPI is to seamlessly pass on the benefits of various schemes to the beneficiaries as SMS-based e-voucher. The central bank’s digital currency is in the form of prepaid vouchers that are sent to the mobile phones of eligible beneficiaries. Though this currency can be used for purchasing goods and services, E-RUPI cannot exchange it for cash. 

In banking terms, E-RUPI has the potential of taking over the credit disbursement process where the proceeds are meant for a specified cause. With 80% of the Indian population having access to smartphones and E-RUPI nullifying all physical interference, it makes sense why E-RUPI could revolutionize digital payments in India. It would speed up the acceptance of technology-based payments hence lowering the country’s cash dependence even further.

6.Credit Card x UPI

The payment landscape in India has been evolving rapidly, especially since the pandemic and extensive digital adoption across industries.  RBI has recently announced the linking of credit cards to UPI. This is expected to be a great payment option.

This integration will solve multiple hassles in the customer payments journey right from erasing the need to carry credit cards and swipe at the Point-of-Sale machine/fill card details online to enjoying more secured payments. The move will thus deliver a more convenient customer payment experience, in turn widening the scope of digital transactions and merchant tie-ups in India.

The future of Banking for Indian Startups

Fintech startups have been blooming progressively and revolutionising digital payments in India. With this, dependency on a stable banking system to handle their financial operations has been ever-increasing.

This is what helped Neo-banks take the fin-tech industry by storm. 

They leverage its modern digital platform to analyze customer data and make data-driven decisions. Along with better customer experience and seamless transactions, Neobanks provide digital financial solutions payments, money transfers, money lending, and more. Banks and financial institutions are rebranding themselves only to be more agile and responsive to changing customer behaviours.

Here’s how RazorpayX is changing the face of fintech.

RazorpayX- Revolutionising Fintech

RazorpayX is the Neo banking Business Unit of Razorpay. What’s Neo about it? RazorpayX was born out of the need to deliver the best business banking  experience for merchants. 

 

RazorpayX is a full stack banking suite which supercharges the current accounts

  • Banking which provides end-to-end automation with powerful features
  • like Automated Accounting, OTP management, Maker-Checker Flows
  • Corporate Cards with 20X higher limits
  • Forex & Funding Management
  • Automated Vendor Payments
  • Payroll – India’s ONLY payroll with Full compliance automation, Employee Insurance management and TDS filing)

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Content Marketer at RazorpayX. Travel & Scuba Enthusiast. Makes the best vegan coffee.

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