With each passing day, technology has become more advanced – how we interact with each other, how we learn, and how we operate has been influenced gre
With each passing day, technology has become more advanced – how we interact with each other, how we learn, and how we operate has been influenced greatly by technology. Things such as remote surgeries, driverless cars, and augmented reality were situations that one couldn’t envision but are slowly becoming a reality, thanks to technological developments.
Organizations are being driven through enterprise mobility, cloud, blockchain, AI, VR, machine learning, and many other technological progressions. One such legacy sector that has been reimagined through technology is the financial sector of India. From visiting the bank for every little thing to accessing banking at your fingertips and being able to perform activities such as money transfer within split seconds, this sector has truly realized its power through technology.
What differentiates the top fintech leaders from others is the early adoption of technology to increase their presence and enhance the end consumer’s experience. Harshil Mathur, Co-Founder and Chief Executive Officer of Razorpay, Vijay Shekhar Sharma, Founder and Chief Executive Officer of Paytm, and Sameer Nigam, Founder and Chief Executive Officer, PhonePe, are some of the prominent leaders in the fintech industry. What sets these top financial leaders in India apart from the rest is the ability to innovate, anticipate and respond to the ever-changing landscape.
For instance, Sanjiv Bajaj, one of the famous financial leaders in India is a good example in this regard. Bajaj Finance is transforming and disrupting the financial services sector through the provision of digitalized services that are accessible to a wide base of consumers. This is where financial inclusion comes into play where the underserved and unbanked segments get the ease of access to a wide range of financing and protection solutions.
Introduction of Technology in the Financial Industry
To begin with, banks were traditional bodies that were quite reluctant about technology adoption as they had concerns about security, the regulatory environment, scalability, and interoperability. But with time and under the guidance of some of the best fintech leaders, banks have changed how they perceive technology and deemed it an essential part of the survival of the banking system.
Technology makes the operations seamless for the banks and plays a great role in making banking simpler and accessible to a larger customer base. The pandemic further stressed the need for technological advancement in this field, which was anyway a preferred method for millennials. The trend tilted towards increased adoption of digital payments by millennials who preferred performing financial transactions on their smartphones and tablets, and the decline in cash payments became evident. It comes as no surprise that technology is revamping the financial industry. Here are some of the FinTech trends that are disrupting financial institutions.
The banking industry uses AI very conspicuously through chatbots and robots. Some of the top fintech leaders heading companies like JP Morgan, Bajaj Finance, HDFC, and Bank of America adopt artificial intelligence to enhance their customer experience by making the customer service extremely efficient.
Bajaj Finance, for instance, is leveraging AI for its lending services where big data and credit analytics is playing a vital role in making the NBFC an adversary to major fintech players in the market. JPMorgan Chase rolled out an AI-powered virtual assistant for corporates to make moving money globally such as routine payroll or mergers and acquisitions convenient. AI also makes the customer onboarding process seamless. Another major reason AI deployment is preferred is that it prevents fraud and results in security enhancement.
AI sets the foundation for other technological innovations such as voice recognition, big data analytics, and robotic automation. Thus, it helps financial institutions with risk management and their decision-making process.
Just like the internet changed media as we knew it, some of the best fintech leaders believe that blockchain is set to cause the same disruption in the banking sector. Blockchain technology is based on a decentralized digital ledger of transactions, making it secure, transparent, and fast. Financial institutions quickly realize the potential of this technology to bring down costs, improve customer experience and ensure stricter security. Blockchain improvises the credit systems by eliminating third parties and eliminating manual data handling in traditional banking ledger systems.
Voice Interfaces and Robotic Process Automation (RPA)
In order to stay ahead of the competition while providing an ideal customer experience and exceeding customer expectations, financial institutions are leveraging robotic process automation. RPA brings down operational costs, reduces labor, and enhances efficiency. According to Forrester, the RPA market will reach $2.9 billion by the end of 2021. RPA eliminates tasks that require exhaustive manual labor and automates repetitive tasks using virtual assistants and programmed robots. This gives information access to customers within seconds and ensures regulatory compliance for financial institutions.
Enhanced Cyber Security and Resilience
The financial sector is a lucrative target for cybercriminals. Cybersecurity became an essential deliberation for all businesses, especially after the remote working trend in 2020. The pandemic sowed seeds of societal fear, uncertainty, and ambiguity that were seen as an area of opportunity by cyber attackers.
Digital technology has become more crucial than ever in both professional and personal lives, increasing the vulnerability of individuals and enterprises to cyber-attacks. Since the entire landscape has evolved, so has the way businesses approach cyber-resilience. By adopting advanced technologies like modern encryption techniques and stringent data protection techniques, Cyber frauds and data breaches can be eliminated significantly By adopting advanced technologies like modern encryption techniques and stringent data protection techniques
The Top fintech leaders are steering their companies to adopt advanced technologies to make financial services more accessible to a wider population and develop the best products for the market. Customer journey enhancement, affordability, and accessibility are key to any domain. With technological disruptions enabling adaptability to the ever-changing landscapes, financial institutions will be at the top of their game.