In the last 15 to 20 years, there has been a surge in the number of fintech (combination of the words financial and technology) companies worldwide. This is a result of emerging technology helping financial institutions deliver services in faster and newer ways than was conventionally available. The emergence of fintech has transformed virtually every aspect of how we make financial transactions. Today from a consumer’s ability to see their financial transactions online to mobile apps that track expenditure to the tools that let institutions make quick lending decisions are all part of this transformation.
Some of the major fintech companies in India include ClearTax, PhonePe, BankBazaar, Paytm, Paisabazaar, and many more.
What are the Fintech Trends & Analysis?
The transformation in the financial industry will continue as companies make the shift to nurturing innovation. Fintech products have eased the way people are making cross border remittances, automated regulatory functions, raised the number of data points used to make lending decisions, and more. Here is a list of some of the trends that we are likely to witness in the fintech industry:
- Mobile payments: With the penetration of internet to remote areas and easy access to mobile devices, today almost everyone has become a part of the financial system even without having to open a traditional bank account. As a result, mobile banking will continue to grow, mostly in areas dependent on technology. Another development that will support mobile payments is the deployment of 5G technology.
- Artificial Intelligence (AI) and Robotic Process Automation (RPA): AI will dominate fintech in new ways. Last year we saw businesses use AI to develop new commercial interfaces, especially the companies looking into voice assistants. Today, consumers have easily adopted digital assistants, and many are now available for use at home. AI for voice will witness a growth in call centres, with bots making direct calls more quickly and easily.
- Blockchain technology and financial inclusion: With financial inclusion, a large section of people will adopt mobile banking, which is driven by blockchain implementation. Blockchain technology has pushed fintech into the spotlight, and it will drive mobile banking adoption outside the high-growth areas. Blockchain offers unbanked individuals a verified online identity that will allow more people to be financially included.
- Regulatory Technology (Regtech): With increasing investment driven by the increasing amount of regulatory oversight, large financial institutions will slowly implement regtech instead of hiring more compliance employees. Regtech will address issues relating to compliance checks, regulatory reporting, risk management, transaction monitoring, and identity management.
The environment today is encouraging the growth of fintech and demands for tech-based financial solutions are not showing any signs of abating. Get in touch with 3i Infotech if you are keen to implement fintech tools to give your business a helping hand and reach out to more customers.