The disappearing divide between Urban and Rural
Any new disruptive technology like blockchain is stringently evaluated for the benefits it is likely to bring in for people, companies and the economy overall. FinTech innovations are put to the same test time and again, and put to good use across the world to improve the overall security of financial transactions online, along with generating a significant trust in such services. We have reached a point where carrying out financial transactions online, moving away from traditional methods has become the norm. In India especially, this trend has been adopted at breakneck speed with the introduction of instant payment redressal solutions like UPI, NEFT and more.
In urban centre’s like Bengaluru, Delhi and Mumbai, the adoption has been accelerated by a growing early-adopter population – tech-savvy people who jump on to the next best thing very quickly. A whole new crop of digital-only companies are coming up everyday and some have been exceptionally successful. Much of this growth has been made possible due to the booming growth of digital infrastructure for carrying out transactions easily, lending small loans faster aided by the huge influx of cheap cellular data plans due to the fierce battle in the mobile cellular service operators space. This has left a significant impact on the entire nation as it is now possible for the rural population to access everything which they have not been able to do in the past due to connectivity being largely restricted to bigger towns.
With this growth in the reach of people able to access services online, fintech is anticipated to enter and make a difference. This is bound to happen as according to a report from the World Bank, close to 1.7 billion people still don’t have access to or are not part of a substantial financial system.
Expect major changes in FinTech over the coming years, and we are betting on the following:
While already here, RPA (Robotic Process Automation) will become more mainstream in FinTech – this is necessary to optimize efficiency and deal with a large-scale spike in user growth.
The personnel freed from their mundane tasks through automation could be utilized for higher purposes. Customer onboarding, security checks, reporting, compliances and more will be taken care of by the automated systems. Rule based systems will make loan approval and repayment airtight – doing a whole list of activities automatically. Predictive analytics can predict in detail the likeliness of an individual or a company to repay loans. Underwriting is an area where automation is heavily in use today as well.
Search with voice, not text!
Cognitive artificial intelligence is here, and some of us use it on a daily basis. Many of us already have a virtual assistant in our houses and workplaces in the form of smartphones, speakers, smart gadgets and more. In 2019 alone, the number of digital assistants across the globe was close to 3.25bn. Over 72% of the people in the US use voice search to seek certain information.
As per latest metrics, over 50% of all searches being read out, not typed in. With time, this will only go higher, and get adopted by other industries as well – including FinTech. We are already seeing examples of this where tele-banking services are authorised with voice recognition prompts instead of PIN codes.
Some other areas where we beleive that this technology will make its impact felt includes:
- Getting credit balance
- Overdue notifications
- Due date
- Request statements
- Initiate service requests
- Check market conditions for investments
- Much more
A releated trend – people prefering text messages over calls – has shown it’s impact already. We have seen bots on messengers that allow you to take significant actions for your account. People are available financial services by chatting with an intelligent bot, or interacting with a human over emails, texts, and raising tickets. Gone are the days when people would call up customer support or visit a bank.
Some of the sources where these touches happen include:
- SMS/Text messages
- Instant messengers like Facebook messenger
- Social media platforms like Twitter
Exploring new markets
Currently, US dominates fintech investments globally, but this is set to change with hubs growing incredibly in Central and North Asia, and South America.
Our team at Getafix is themselves a part of this shift and are consistently investing more ofour time and efforts introducing new, innovative FinTech solutions with our partners every year. We already have made strides in technology delivering projects such as neobanks, credit approval automation, underwriting and much more.
Digital only banking/Challenger banks
Like we mentioned in the previous section, companies like ours have invested significant resources into making a digital India reality. Concepts like virtual banks, neobanks and digital wallets are being used everyday in real life by the end users with great success. The benefits of these alternate banking solutions are a great proposition for a country that is pushing digital transformation in all spheres, and with 2nd largest population as the audience base, the rewards for enterprises to enter this field are immense.
With cloud banking and free-floating platforms already well-adopted, we foresee a completely online banking industry in the near future. It is an easy statement to make given the current state of things.
Our team is already planning for tomorrow’s world of virtual banking – with our Neo banking solutions, and we look forward to helping move the fintech industry through to the next evolution in finance.
Crypto is staying, and growing
Crypto is volatile, yes. We have seen billionaires made, and bankruptcies declared in the past decade due to it. But, the interest in stablecoins along withcentral bank digital currencies will begin to open up tremendous opportunities in the cross-border payments space. This decade seems to be the time it goes mainstream – with countries and governments opening up to crypto currencies.
Fintech as a service
Cloud and SaaS solutions are probably the hottest trend in digital transformation space. It provides great benefits that are hard to overlook for any industry. Fintech is no different. Financial applications have also begun to be shared as a service/digital product. While one might not want to invest in a heavy infrastructure for their investing and financial management requirements, they can always use existing Fintech as a service.
Some of the services that are widely available as a SaaS app include:
- Billing management
- Transaction processing
- Payment regulations
This approach bridges the gap between the best technology that is available for financial applications and what is commercially viable for businesses and consumers to access.