[Trends 2020] Collaboration Is the New Innovation
The biggest collaboration boosting the growth of different businesses in India is the partnership between banks and fintech companies.
We're at the dawn of a golden period of fast business innovations. One of the budding innovations is collaboration between different entities, the primary cause of business disruption.
As per a PwC report, collaboration is already a priority for many CEOs, with 86 per cent stating collaboration as a very important skill. These industry experts and influencers believe that a collaborative approach is remarkably effective, and its aim is to provide solutions and better services in running SMEs, MME's and large-sized businesses.
Currently, the biggest collaboration which is boosting the growth of different businesses in India is the partnership between banks and fintech companies irrespective of the company size. Banks can either choose to embrace fintech and innovate together or lose the competitive edge to other banks.
But directly or indirectly, each collaboration results in benefit of the mass. For instance, let's take the QR code payment solutions provided by the different payment wallets such as Paytm, Google Pay or POS service providers such as ePaisa, Pine labs and more which help people to experience a two-step hassle-free transaction.
It won't be wrong to say that banks and fintech collaboration played an important role in digitalising and introducing various payment options for India.
In all such partnerships, banks are the service providers but fintech executes those services in a user-friendly application or software for customers.
It has also been witnessed that fintech across all line of business are building innovative framework and banks are upfront partnering with them. Just not payment processing, but the entire ecosystem in banks is getting digitalized, i.e. standard operation process, human resources engagement, etc.
Banks do have innovative ideas but the challenge is executing the ideas into technology which is actively done by bank and fintech collaboration. Due to these innovative ideas, there has been great growth in the fintech sector globally which is helping all other business sectors to grow as well by digitalizing them.
Now let's take an example of the easy commute we can do because of the easy recharge options, the instant bill payments we can do because of all payment wallets, how a shopkeeper can manage his inventory and do quick billing simultaneously with one single point of sale, etc. All these are being possible because of experts coming together with something new, something more useful for the people.
In the future, innovative ideas that are the result of collaborations will take the market into another level. For instance, the implementation of artificial intelligence by banks developed by fintech is improving customer experience and gauge business strategies, among others, and these collaborations will become ever more popular in the marketplace by the increasingly driven forces of digital disruption. The digital future which will be forged by cloud services, smart mobility, social media and big data analytic power will help each and every business to flourish and grow rapidly. But all these won't be possible under one roof, only an industrial mash-up can provide these.