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In the last couple of years, India has gone through a digital makeover, rapidly transforming how businesses operate today.
The makeover has also resulted in a paramount shift in the conventional money management and banking services industries as fintech has construed into a series of disruptive innovations.
The current Indian fintech space
India is no longer holding back from leveraging the latest technology to simplify financial services, and UPI is an excellent example to support that statement. Since the innovation of UPI, there have been many apps contending to be “the one” while Google Pay has been the go-to app for many. These apps have significantly hit the high spots, making payments easy and instant.
The current ecosystem comprises of fintech startups, digital payment companies, banks, multinational technology pioneers, and insurance companies.
India encourages innovation
Payments have seen a significant revolution in the last few years, particularly because of the disruption of e-commerce, mobile commerce, and online payments. Although financial inclusion is much more than just payments and transactions, payments are thought of to be the gateway for financial inclusion.
Consumers and businesses will continue to embrace digitized payments while UPI will still remain to have its firm ground for both P2P and P2M transactions.
Suggested reading: UPI in 2019 – A Story of Numbers
Increased partnerships between fintechs and corporates
The Fintech Times says 2019 will be the year of smart collaboration – partnerships between fintech innovators and corporates, where corporate companies would much preferably invest in Fintech, rather than purchasing solutions.
We will also observe banks teaming up with fintech to clear out irregularities to provide value-added services and smooth customer experience, along with a series of advanced features to ease operations.
Simplified personal wealth management
There’s a rising change being experienced by the Investment Advisory administrations with the development of computerized wealth advisors, also called “robo-advisors.” And, by “robo,” we mean digital wealth management platforms rather than actual robots. They can provide advice about wealth management by utilizing algorithms, helping customers make financial judgments on their behalf.
The ideal result is the capacity to yield custom-made, significant advice to investors without the involvement of human emotions, and at a lower cost. This helps in creating scalable business models that are sustainable even at low-profit margins.
Implementation of cloud computing will reduce costs by a great extent because no additional investments are needed for managing resources as the costs associated with dedicated hardware are software are eliminated.
Cloud adapts to the changing demands and provides resilience to serve the changing needs of customers. Cloud resources also scale upon requirement and allow easier integrations with advanced technologies.
Increased security in digital payments
Security will be widespread since financial transactions are subjected to threats and attacks. An EY report says, technology like Blockchain will be all the rage, attributing to its exemplary features like transparency, immutability, traceability, and auditability.
Blockchain will be able to provide a high level of security when it comes to the exchange of money and sensitive information, allowing users to draw off its transparency while lowering operational costs.
Seamless interaction using NLP based chatbots
There is already a wave of disruptive technology in businesses in banking and finance. It is well-known that customers are always trying to find better ways to interact with companies, be it banking or otherwise, seamlessly.
According to PwC India, Fintech will create a whole new sensation by employing NLP based chatbots and innovating Conversational User Interface (CUI) to reform mobile banking. These chatbots will be able to respond to customer problems and provide feasible solutions in real-time, thereby elevating customer experience.
Fintech is improving customer experience by providing tailored arrangements and administrations to suit the customer’s individual needs. The eventual fate of fintech will see customized illustrations that can envision significant occasions in a customer’s life.
Implementing Artificial Intelligence (AI) and Big Data for personalization will result in improved risk identification and qualification, which can be utilized in the advancement of modern service models.
Neobanks provide all the benefits of traditional business banking, along with customised reports, flexibility for bulk upload, easier failure identification, scheduling of payouts, and so much more. And, RazorpayX is at the forefront of the banking revolution in India.
With RazorpayX, businesses can
- Manage their contacts and end-to-end payout operations via powerful APIs
- Make 24*7 payouts, disbursals, and refunds through UPI, NEFT, RTGS, and IMPS
- Offer 24*7 instant refunds and payouts to their customers and vendors etc., without any manual intervention
- Instantly access and download financial reports and summaries of their contacts
- Get complete control and visibility of their finances with real-time summaries, without any help from financial analysts
- Automate and execute payroll, compliance, and contractor payments with a dual tax regime compliant payroll software
Long and short of it
While 2019 was a massive contributor to the Indian fintech space, creating a solid foundation for innovative technologies to emerge, fintech will remain an industry that will be on the leading edge of innovation.
As India is evolving to be a digitized country, we can only expect more advances to cause a breakthrough in the Indian fintech space.
Read next: 2020 – The Year for Neobanking in India