The emergence of FinTech players in the Indian market has revolutionized the financial service industry. It has accelerated the digital transformation and reached to more people who are either underbanked or unbanked. The consumer-centric approach with an innovative interface made these companies popular and the conventional banks have started utilizing these benefits in their offerings.
With this article, we are trying to discuss five new trends the FinTech companies brought and that have now lead to a disruption in the banking industry.
Adoption of AI-ML: FinTech companies adopted elements of artificial intelligence (AI) and machine learning (ML) in their products and services in order to automate various banking operations. This eases the back-office and front-office processes and has enabled seamless core banking services. AI-enabled Chatbots reduce the time and efforts of various banking activities. Effective data analysis with the help of AI helps to deliver personalized financial solutions to the customers.
Blockchain: FinTech players have overwhelmingly integrated blockchain in their products and services. This technology improves efficiency and security of the financial service industry thereby saving the costs for checking fraud and identity theft. It is expected to increase the use of blockchain in digital payment and smart contacts.
Robo advisory: Though third-party financial service assistance portals have started using Robo advisory, the mainstream banks are yet to explore this technology. Going forward, this has the potential to transform the financial advisory area, that is mostly the responsibility of human beings. Like all other emerging technologies, the Robo advisory is also introduced by FinTech companies. We will soon see this technology taking over the advisory role from human beings.
Financial inclusion to the unbanked population: As said above, the advent of FinTech and its customer-centric approach take financial services to the common public thereby catalyzing the financial inclusion of a large number of unbanked and underbanked segments. The current pandemic situation has intensified the adoption of digital banking solutions. The payment banks and digital branches eliminate the boundaries that have arisen due to the pandemic. For an individual living in the remotest location, he/she has can easily access banking services now. The traditional banks are also launching digital branches to explore these segments.
Coalition for better banking: The initial inertia of banks towards FinTech companies have now diminished. The collaboration of banks and FinTech companies are increasing to cater to the demand of their customers. Many leading banks are investing in FinTech companies to improve the financial technology sphere. The development of more innovative products from this coalition is bound to happen
These are five areas where the FinTech companies have disrupted the banking industry. Now, the banks have started investing in R&D of FinTech companies to build advanced solutions. The FinTech players are recruiting more and more fresh talent to intensify innovations. Individuals having skills in new-age technologies can start a successful career in FinTech companies with a competitive salary.
Manipal Global Academy of BFSI in collaboration with Axis Bank offers a FinTech program at the School of FinTech. The program aims to prepare engineering graduates to be future Fintech managers. The expert-led program will give hands-on training on cutting-edge technologies and its integration with financial services. The School also ensures the placement for all the students. This is the first-ever high-intensity coding school for the BFSI sector in the world.