How Promising does the Fintech Industry Look in 2018
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The Indian fintech sector underwent a rapid transformation in 2017. Landmark initiatives like the interoperability feature of e-wallets, mass adoption of the real-time payment system United Payment Interface (UPI) and Aadhar payments have reiterated the government's commitment to usher in a cashless society with an emphasis on creating a financially inclusive ecosystem.
Digital Innovations to be the Key Driver
The Indian fintech industry is estimated to enter into a consolidation phase driven by digital innovations and customer-friendly regulations initiated by the government in 2018. Technologically advanced communication interfaces in the form of chatbots are replacing conventional business models are being driven by personalized data-driven mechanisms which are expected to redefine customer interactions. The creation of 'IndiaChain', the country's largest blockchain network by the NITI Aayog is a step in the right direction which will help in building a robust fintech ecosystem by reducing instances of fraud and emphasizing on transparent transactions. Blockchain is emerging as the new-age disruptive technology of the future with financial institutions increasingly capitalizing on its anti-hacking features and creating a robustly secure operational backend.
Artificial Intelligence (AI) to Augment Automation
Artificial Intelligence (AI) is revolutionizing the functional paradigms of the financial services sector in the country. Financial institutions are expected to usher in large-scale automation of their backend tasks through AI implementation and use machine learning to fortify their security architecture. AI can help organizations to attain scale and operational sustainability through the accurate detection of fraudulent transactions, checking for suspicious behavior and creating a pathway for protection against future security attacks.
Social Media Marketing and Customer Interactions set be Become a Crucial Component
"Fintech Marketing" or "Finleap" are the emerging buzzwords in a rapidly changing online marketplace as social media trends determine consumer mindsets. Businesses are increasingly realize the massive outreach of the social media and utilizing platforms like Facebook, Twitter and Instagram to reach out to prospective consumers and create a loyal consumer base. Social media channels will increasingly be used to provide a wide array of financial services and help people perform simple functions like opening an account, apply for loans or open a bank account. An increasing number of banks and financial services companies are expected to use social media for enhanced retail customer interactions and provide core services in a real-time milieu. Social media marketing will also form a key component of the overall marketing strategy of fintech companies. With the increasing proliferation of social media and their growing role in financial inclusion, emphasis will be high on data security and consumer privacy as regulators enforce strict compliance measures.
Collaborations to Shape the Road Ahead for Fintechs
There is no denying the fact that fintech has emerged as a major disruptor and has overwhelmingly transitioned the way in which the financial services industry functions. Rather than being at crossheads, financial institutions like banks and fintechs will have to increasingly collaborate with each other to leverage the competencies of an advanced payment ecosystem. All the stakeholders in the financial services industry will have to recognize the fact that synergy of operations and combining of expertise between both entities will lie at the core of improved customer engagement and service. In recent years, fintechs have displayed a greater capacity to design and execute innovative tech-based products which are better suited to cater to the need and requirements of a new generation of discerning clientele, a fact that is being largely noticed and appreciated by banks. While products marketed by fintechs are characterized by a low cost base and agility, traditional banks have the accrued advantage of a reputed business identity, credibility and a huge customer base.
Going ahead, the Indian financial services sector is anticipated to witness greater integration and collaboration between fintechs and banks creating an evolved banking experience for customers.