FinTech Industry

India has become one of the world’s leading countries in FinTech adoption. Digital technology is used by individuals on a daily basis, and this benefits the growth of FinTech industries resulting in increased adoption of FinTech services. The Indian economy has had a positive impact because of increased FinTech adoption across multiple sectors. This growth in digital transactions has allowed transparent, secure, swift, and cost-effective mechanisms, benefiting businesses, consumers, and governments.

With the huge impact faced by the FinTech industries because of Covid 19’s first and second wave, how should Indian FinTech companies prepare themselves for the upcoming third wave? 

Amidst the rising fears of the third wave spread, there shall be more challenges as well as opportunities in front of the FinTech industries.

Precautions that should be executed by FinTech Industry 

Strengthening customer’s digital accession experience

Since Covid, offline customers are increasingly signing up with the help of E-KYC. In the financial year ending March 21, around 11 million new accounts were opened. So, there is a need to enhance and fasten the process of customer digital onboarding to meet the demand for faster, easier and virtual EKYC.

Scheme for financial pressure

FinTech industries should ensure the management of proper cash-flows to control future financial crises. There might be situations where there is a demand for higher loans and massive new loans, and to tackle situations like this, FinTech companies need to pre-plan for financial stress. They should be prepared to create credit lines for additional funds.

Enlarge infrastructure to 3-5 times than current maximum volumes

 FinTech industries should prepare themselves for increased transaction volume and line up their hardware, cloud infrastructure as well as software. This will lead to uninterrupted growth with constant offerings that will satisfy the customers.

Emphasize cybersecurity

 The omnipresence of the internet in the financial service industry has resulted in the rise of cybercriminals. Especially, FinTech start-up companies are prone to malevolent threats to their security. Thus, cybersecurity has become a big challenge, especially in the post-covid period. Such crimes may result in loss of important information, strain business relations, and can also lead to reputation damage, and have several legal ramifications, as a result of which employee morale can be affected to a large extent, increasing the rates of employee erosion. Therefore, the FinTech industry should invest more in cybersecurity.

Intensify more efficient remote working infrastructure

 The FinTech industry should enhance hardware, software, and other related infrastructure in order to provide support to workers working remotely. Also, the industry should keep backup resources as a shield to fill in for any team members who might fall sick due to covid third wave.

2021 Fintech Trends to Keep in Mind for the Industries 

In 2020, with the help of UPI payments, many people switched to online banking resulting in increased online brokerages. With more people switching towards FinTech transactions for their finances, there will be great opportunities opening up for the FinTech industries.

  • Big data management- All financial organizations gather a large amount of data, some of which are organized and some are unorganized. To identify potential risk and to make improved decisions out of it, the data must be managed using a powerful analytics tool such as big data analytics.
  • RPA- To mechanize backend office management like security checks, customer onboarding, mortgage processing, and credit card, robotic process automation (RPA) is used. To finish tasks more efficiently and effectively, to improve organizational productivity, RPA will be used at an increasing rate by the FinTech industries.
  • Blockchain- Blockchain technology enables the FinTech industry to make transactions safely and securely. Blockchain focuses on minimizing centralized procedures. Also, it ensures that the information stored is protected with end-to-end encryption.
  • Artificial Intelligence and Machine Learning- According to Autonomous Research, AI will reduce 22% of the bank’s working expenses by the year 2030, as a result of this, all the banks are now looking to merge AI in their processes. FinTech applications may continue in utilizing AI with more efficient and effective chatbots in order to address customer queries. AI can also be used to control rising cybercrimes by recognizing financial frauds and threats.
  • Digital Banking- A huge percentage of the population turned into digital banking as digital banking made it easy for people to get access to a wide range of financial information and perform crucial tasks without visiting the banks. AI, biometrics, cybersecurity, and open banking brought advancement to digital banking.