In India Fintech is the technology and innovation that competes with traditional banking and financial methods in the delivery of its services.The FinTech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. The examples of technologies aiming to make financial services more accessible to the general audience in more and is via the use of smartphones for mobile banking and other online transaction, investing services and cryptocurrency . FinTech companies consist of both established financial and startup organisations/companies and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.
A mobile enterprise app is the most essential and necessary. In India the number of users on mobile is tremendious and thus it is the hottest market for innovation. While most of the banks already have mobile apps for banking very few of them have an analytics framework attached that can provide data at a large scale. Data is usually generated through sources like behavior insights, user interactions and repititive reviews. It is the easiest and most reliable source of data that banks can leverage to generate insights into the market.
The more hype about an application, that is at convienence to a larger number of people the more demand for its usuage increases on daily basis. This is when web application development takes a toll. Enchancing the existing applications attracts people on a large scale.
As we have seen IoT(internet of things) can play a major role in banking and finance. With time many other data points will add and the level of personalization will increase from marketing to customer service. Internet of things a.k.a ( IOT) has tremendious ability into converting the way how banks and financial institutions settle major decisions and serve us.
Banks and fintechs have their own core competencies for their existence in this financial market. Fintechs or start-ups cannot exist without banks as consumers store their money and important financial information with them, that would be required by any fintech firm to service its customers.
Following are the perks of the partnership between FinTech and BFSI
- Banks and fintechs partnership could open up gates of joint investment in technology, innovation, and various accelerator programs targeting different areas of banking for their mutual growth.
- Due to a low operating cost and high transaction volumes, banks in partnership with fintechs will be in a position to provide their consumers with a variety of offers that can attract new customers and retain the existing customer base.
- It will be a win-win situation for banks and fintechs due to such collaboration and the rate of return on investment will mostly be higher, in the long run, considering high volumes and a low operating cost.
Fintech having the access to BFSI will serve the essential purpose to people. As we know, the time is invaluable, especially if you have to spend hours trained to make payments or even just to make deposits or withdraw money. It’s Flexibility allows you to save information, query data in different alternatives that you could not previously. It also gives you the flexibility to be able to do it anywhere, anytime.
Companies can manage in a transparent and fast way. All in one click on your home community from your computer. Due to various mobile enterprise applications build for banking and finance sector which eventually helps people to perform smooth monetary transactions. Because of which obtaining a loan is easier than ever. Investments has been transformed by crowdfunding. People can make easier payment from one account to other various accounts.