FINTECH is the buzz word in the banking and financial services industry. Its innovation and the extensive use of technology at its best. Fintech refers to financial technologies and technical platforms related to money transfer and transactions, whose domain extends from banking to payments to investments.
Numerous fintech startups have mushroomed in the past few years with a focus on helping consumers save, invest, borrow and pay in a better way. The word Fintech may sound complex, but it’s the simple task of replacing paper-based processes with technology and apps.
Fintech has been around for many years, aiding banks in back-office functions, executing transactions and managing customer databases. The term fintech was coined in 2011 and it’s widely used today to describe innovative financial technology.
Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
You May Also Watch:
In the new avatar of disruption, the power of Fintech is coming to the fore. A wave of innovation has swept the financial services sector and disruption has serious potential to unsettle the traditional banking and financial services industry. Fintech leverages the power of digital transactions aiding online shopping, foreign currency exchange, stock investments and money transfers at investors fingertips.
Fintech draws its power from mobile phones and the thousands of mobile apps blooming across the banking and financial services industry. The mobile is at the heart of the fintech revolution in India.
A comprehensive study by Omidyar Network, found that mobile penetration in India is set to rise to 85-90% by 2020 from the current levels of 65-75%. According to a report by the World Bank, with just 1.57 Billion accounts, 80% of Indians save outside banks. Mobility brings banking services to customers doorsteps and is the key to financial inclusion in the country.
Fintech has transformed banking as customers no longer wait in queues for mundane tasks like depositing money, requesting a cheque book or withdrawing cash. The Smartphone revolution has led to the birth of online payment apps which integrate with bank accounts allowing seamless online shopping, mobile-to-mobile payments, money transfers and customers checking bank account balances through apps.
The disruption of fintech is happening in many ways. Fintech has led to the extensive use of chatbots in customer service. Chatbots are bits of software which use machine learning to continuously learn from human interactions and automate tasks. Banks, Insurers and other players in the financial services industry are using chatbots to streamline customer-facing interactions like handling queries, providing investment advice and directing customers to relevant departments. Chatbots enhance customer satisfaction and cut costs, freeing agents in the financial services industry to look into more pressing matters.
Fraud can cost players in the banking and insurance sector losses in crores. Data losses affect customer confidence and lead to negative brand reputation. Fintech uses machine learning and AI to detect fraudulent transactions and money laundering. The process involves a combination of technology and human intervention. Technology red flags suspicious financial transactions and human investigators look into the matter. Machine learning algorithms look for patterns in historical records and predict the possibility of frauds even before they occur.
Fintech reduces the need for bank branches, cutting costs. Banking takes place through digital channels like mobile and social, reducing the need for brick-and-mortar bank branches. Financial Inclusion in India is attributed to the JAM Trinity. Fintech is bringing banking and insurance services to the furthest corners of the country, where traditional bank branches can never reach.
Fintech has led to the birth of robo advisors who automatically select investments and build diversified portfolios. Robo advisors provide investment advice, aiding financial advisors in decision making. They are excellent for Companies who don’t have the money to hire financial advisors. Robo advisors cut down costly investment mistakes. They remove the emotional aspect of investing like gut feeling and don’t make mistakes.
Fintech has a powerful ally in biometrics where voice patterns, iris, thumb impression and facial recognition add an extra layer to authentication and security for transactions. Biometrics increases the efficiency of financial transactions through quick authentication, reducing the need to remember multiple passwords. Banks are looking to biometrics-based authentication systems which use forward-facing cameras to scan the iris. Smartphones have in-built scanners which can be used to strengthen security.
Tech-savvy customers are forcing banks and insurers to adopt the latest technologies in the ever-transforming financial services industry. Banks are collaborating with Fintech firms to streamline processes and reduce hassles faced by customers. Partnering with Fintech Companies helps banks with quick information processing and speedy loan approval. The insurance sector is adopting chatbots which function as digital agents. Customers interact with chatbots resolving queries and understanding insurance processes. Banks and insurers are finding fintech startups the perfect match. Fintech startups offer innovation and help players in the financial services industry maintain compliance, while offering customers real-time access to financial services.
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Be Wise, Get Rich
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.