Digital wallet services, UPI, and BNPL (buy now, pay later) platforms are just a few examples of how India is leading the way in innovation. Within a decade, innovations from fintech companies have changed every aspect of the banking industry, including payments, infrastructure, access to financial services, distribution. The pandemic significantly increased customer desire to explore new digitised banking services, accelerating innovation in the fintech industry. While the pandemic accelerated the global economy’s digitisation, India’s fintech sector is reshaping the financial services sector by prioritising customer experience and accessibility. With that in mind, here are four technologies shaping the future of the Indian fintech industry.
Banking is now available at our fingertips thanks to fintech companies. However, given the daily rise in cybercrimes related to banking, it has also produced numerous security issues. As identity verification grows more widespread, biometric technology is taking on a progressively larger role in financial technology innovation. Authenticating online transactions, simplifying account access, and even replacing passwords altogether are all facilitated by biometrics. The biometric sector is currently undergoing a transformation as a result of several substantial changes. Future banking security will place more emphasis on authentication techniques like fingerprint scanners, speech analysis, and facial recognition software.
The operating model of the fintech sector has undergone a full transformation due to blockchain technology. Transactions can be carried out securely and safely because of this cutting-edge technology. Banks and other financial organisations are rapidly adopting blockchain technology to take advantage of it. Businesses can utilise blockchain technology to sign contracts, record transactions, record transactions, safeguard data, and improve traceability. Blockchain has enormous development potential. But there are some hurdles to overcome before it becomes widely used.
The fintech sector will continue to embrace AI to aid people to make quick decisions and save money. Artificial intelligence (AI) offers targeted product recommendations to enhance the customer experience and automatically upsell customers. AI uses chatbots to help organisations save time and effort by resolving customers’ queries, in order to free up staff time for more high-level work and customer service requirements.
Customers can use chatbots to aid them with a variety of routine tasks, such as creating new accounts, scheduling transfers, and checking account balances. This would speed up financial transactions and increase customer satisfaction while assisting businesses in reducing their spending on customer support. Backend processes like security checks, customer onboarding, etc. can also be automated using robotic process automation that is integrated with AI.
Robotic Process Automation
By automating manual operations, financial markets use robotic process automation (RPA), a modern technology, to speed up processes. RPA in finance enables repetitive, tedious processes to be automated in a human-like approach. RPA is a software technology that makes it simple to create, use, and manage software robots that mimic how people interact with digital devices and software. RPA works incredibly well for back-end tasks and it can manage data-intensive manual operations like accounting reconciliations and data entry.
Software robots are capable of performing a wide range of predefined tasks, including understanding what is on a screen, making the necessary inputs, navigating systems, and extracting and identifying data. This technology is already having an impact on the fintech sector, as businesses use RPA to save time by automating many of their business procedures.
Fintech is redefining how organisations and individuals manage, save, and spend their money. It increases the number of individuals who have access to financial services, lowers transaction costs, broadens the range of payment options available to consumers and businesses, and encourages competitor collaboration. High levels of digitisation in fintech also bring about new difficulties. However, the above mentioned technologies shaping the future of the Indian fintech industry all share one thing in common that they significantly simplify the lives of consumers and businesses.
(S Anand is the Chief Executive Officer and Co-Founder of PaySprint)