Leveraging a Million Possibilities for Fintech Entrepreneurs & Businesses
You would agree, Fintech is playing an important part in the transformation of the financial industry. There have been remarkable advances in the last decade or so, across retail banking, asset management, and payment mechanism. Amid the unprecedented disruptions of 2020, the adoption of Fintech has become a global imperative.
And, since the consumers are now turning to fintech towards improved financial services the trend is now growing in popularity with each passing day. As the economies begin to emerge from the recent setback, we’re witnessing a million possibilities that have opened up in the current business environment.
Here are some changes I anticipate and foresee emerging at a greater scale in the times to come.
· Big Data & Advanced Analytics is the game-changer:
Financial services are the most data-intensive industry vertical globally. And, big data is transforming it by changing the way it generates value, identifies risks and prevents potential fraud. Renowned financial institutions are trying to harness newer ways to apply the data they have accumulated to keep up with emerging industry challenges. Machine learning and predictive analytics have the potential to deliver actionable insights. In the face of industry disruptions and market hindrances, this becomes something of prime importance. Besides, advanced analytics can even help predict customer behavior, leveraging technology to deliver their services more efficiently. Additionally, do give this article a read about how to leverage transaction data to delight customers & drive business efficiency by harnessing the speed & accuracy of analytics.
· Digitization of banks pave the way forward:
With prolonged social distancing measures and mandated lockdowns in place in different places across the globe, digitization has impacted all walks of life. The increase in eCommerce transactions over the last year has been phenomenal. The spike has given birth to payment processing companies that allow customers to use digital payment services. These include payments that wouldn’t have warranted an online payment before. As finances are driven by banks, their digitization and the advent of new technologies like UPI have made it easier to channel funds from one place to another. Here’s an interesting read about why enterprises in the financial services vertical would like to go about creating that perfect digital landscape.
· Personalized offerings can further generate value:
The next stage of digital banking is here. New applications in big data and AI enable banks and Fintech services to offer digital experiences that are highly personalized to consumers. When companies work on solutions that are customer-centric, they see an increase in response rate, customer activation, loyalty, frequency of spending and card usage.
Amidst all this change, how can businesses and new-age entrepreneurs leverage technology? How can they use it to ensure security, analytics at the core and privacy? I’m trying to offer a quick glance at the key global trends that could shape the Fintech industry’s future. It includes:
· Blockchain: The world economy is changing like never before. Fintech’s adoption of blockchain technology has shown us how seamless and effective transactions can be. While this tech approach can undo inefficiencies in the current banking procedures, it is most effective in risk management and fraud prevention. Its indestructible list of transactions, or its digital ledger assists Fintech companies to share data securely and curb data breaking entirely.
· NFT: The non-fungible token (NFT) market has grown over 299 percent in 2020, which is three times its actual market share. These unique digital assets are linked to the blockchain but are not interchangeable with other assets. Hence, they can bridge the existent gap between physical economies and virtual ones. It offers a great market of digital goods for Fintech that can be collected and traded. This lays the foundation for the creation of a future mainstream economy.
· DevSecOps: As consumers’ preference for online transactions has increased exponentially, so has the growth of the Fintech industry. Short for development, security and operations, DevSecOps has allowed Fintech companies to ship better code. It has helped them embrace cloud transformation to better engage consumers while preventing potential threats of malicious attacks. Security shouldn’t be a concern as businesses grow digital — and DevSecOps ensures that.
Further, the increased demand for digital business experiences also requires a safe passageway as more and more Fintech start-ups are going to open-source with their code libraries. It provides a way to integrate security without hampering further deployment or innovation. Read more about everything you need to know to implement a smart DevSecOps strategy.
Despite the setback in recent times, the Fintech landscape has grown rapidly in terms of its geographical foothold and user profiles. In my opinion, the said trends would continue to shape the global economy and the way the Fintech industry functions, today and tomorrow. But the changes incumbent might be a little too unprecedented to predict. Companies would have to continue to respond to changes and opt for a customer-centric approach that delivers the needs of consumers without compromising their security. Have you started moving in the same direction? Do you have any reservations or thoughts — pls comment.
About Author:
Saumil Shah, the CIO at Rishabh Software, is a technocrat with a successful track record of helping clients solve complex business problems. Under his strategic presidency, Rishabh has established a prominent market presence across multiple domains like Healthcare, Retail, Manufacturing, FinTech & more. He is an alumnus of IIT-Kanpur & London Business School and has been on the advisory panel of industry-leading bodies like NASCOM and GESIA. When he’s not busy solving business technology challenges, he enjoys playing tennis or football.
