Fintech is playing its important part in the financial industry’s transformations. There have been remarkable advances in retail banking, asset management, and payments in just the last ten years. Consumers are now turning to fintech for even better financial services, and the trend is growing in popularity with each passing day.
The global pandemic triggered by COVID-19 has elevated fintech’s importance in the financial world. As a result, let’s take a look at a few areas that are developing as key markets for entrepreneurs and will remain so beyond 2021.
1. Payments made with a contactless or digital device
There has been a noticeable shift in customer behavior in terms of payment mode to reduce virus transmission. Consumers used cash to make purchases and transactions in the pre-COVID period. However, the pandemic has altered the situation. Face-to-face payments are becoming increasingly uncommon in the retail sector.
As a result, this shift in customer behavior is hastening the shift from in-person to remote and digital transactions. Given the global health crisis, it is only fair for customers to do so. At the end of the day, in a world where physical contact poses a health risk, the contactless user experience is bound to win out.
2. Lending via the internet
With its innovative solutions, the lending industry has also proved to be a game-changer. It allows people to use a touch-of-the-button consumer interface to fix their financial troubles caused by the pandemic.
With digital transformation and ideas like open banking, there has also been a lot of progress on the integration front. To put it another way, digital lending is the way of the future. People now have a strong desire to avoid the conventional pitfalls of the lending process, which include red tape and complex procedures. The whole process is now paperless and much more efficient thanks to tech-driven lending platforms.
Furthermore, as data continues to grow, the onboarding process for lenders has become simpler as it becomes easier to profile a potential borrower. Taking advantage of such increased service capability is now a must. The conventional lending process takes three to five weeks, with a three-month average time to cash.
3. Control of one’s wealth.
Digitally assisting people with their money management – saving, analyzing, and counseling – is an environment ripe for creativity while remaining consistent with industry regulations.
Over the past few years, India’s net disposable income has risen in tandem with the country’s digital adoption. HNIs and Ultra-HNIs are also on the rise in India, and they often use wealth management services.
Fintech platforms have been able to create cutting-edge solutions based on technology such as Artificial Intelligence and Big Data thanks to the ever-increasing data. In the aftermath of the COVID-19 outbreak, Indians, in general, are gravitating toward unorthodox investing tools other than real estate and bank deposits.
4. AI assistants in the financial sector
Chatbots are one of the most common fintech technology developments in recent years. There have already been some exciting advances in the year 2019. That is to say, the financial services and banking industries are open to dialogue.
The rise of gadgets and applications that can listen, analyze, and respond to our questions and concerns has occurred over the last decade. Because of advances in Natural Language Processing (NLP) and speech capabilities, artificial intelligence-based chatbots are joining the scene and actively driving changes.
Conversational banking is now a possibility, thanks to the same technology that can be used to improve and take financial services to a new stage.
Financial institutions such as Morgan Stanley, for example, are now using AI to detect fraud and conduct trades. HSBC tends to be more aggressive in its use of AI, as it employs robots to uncover fraud, money laundering, and other financial crimes.