New technological innovation has come to existence that aims to compete with traditional Financial methods to deliver varied financial services. FinTech is an emerging technology friendly industry that uses it to improve activities in finance. Smartphones are used widely in making financial services more accessible to the general public for mobile banking, investing services and cryptocurrency. There are startups, established financial institutions and technology companies who are trying to replace or enhance the usage of financial services provided by existing financial companies. To improve and develop services, many existing financial institutions are implementing FinTech solutions and technologies. Thus, developing their services as well as gaining an improved competitive stance.

Comprehensively we can say that the term fintech defines a new financial industry that applies technology to improve financial activities. It is the new application, process, product or business model in the financial services industry. It is composed of one or more complementary financial services that provide an end-to-end process via the Internet.

Ever since the globalisation took place, we have seen a constant change in how businesses happen. This has been fueled by innovative technologies and rapidly evolving customer expectations. To stay ahead in disruptive situations even the highly regulated banking and financial sectors in recent times have witnessed constant metamorphosis of its business models.

Trends To Be Followed

Ever since the globalisation took place, we have seen a constant change in how businesses happen. This has been fueled by innovative technologies and rapidly evolving customer expectations. To stay ahead in disruptive situations even the highly regulated banking and financial sectors in recent times have witnessed constant metamorphosis of its business models.

When it comes to the financial services ecosystem, the FinTech industry plays a significant role in determining how the financial sector moves forward. Today, FinTech is changing how everything works; starting from lending, payments, insurance to credit settlements, and more. Banks and traditional financial institutions are either partnering with FinTech companies or are involved in developing and deploying their own solutions. A PwC report backed it up that titled ‘Financial services technology 2020 and beyond: Embracing disruption’ and stated that global investments in FinTech have more than tripled since 2014 and has crossed $12 billion. In the financial services value chain FinTech solutions play an important role. It is truly a wonder what are in store for 2019:

• Intelligent Banking Channels – By understanding the behavioural aspects of the customers, financial service providers are tailoring each channel to adapt intelligently the personalisation of the user-interface. This will translate traditional banks to gain a competitive edge because of the personalisation and end-user satisfaction offered.

• Voice Assisted Banking – Voice banking has started to acquire popularity. Soon, we will see it offering regional and vernacular language support. With the risen popularity of voice assistants and smart speakers, NLP (Natural Language Processing) is also becoming mainstream. It is not very far when virtual assistants and smart speakers will enable a user to perform banking transactions and would be the most preferred option.

• Narrow AI In Banking – Artificial Intelligence has helped businesses to find new heights. In the banking and financial sectors, operational efficiency and accuracy have found a new pathway using AI. This has opened a wide gateway to focus on activities that are more value generating by automating tasks that are repetitive and manpower intensive in nature.

• Connected Cloud Services – Cloud-based banking is now turning to be common. There are different cloud formats depending on which the banks can choose without sharing its sensitive data. Many bank and financial sectors are using Software-as-a-Service (SaaS) for business processes – CRM, HR, financial accounting and more. Recently, few core services are getting moved to the cloud that includes – payments, remittances, credit scoring, account billing and more.

• Data Privacy Framework – Security and privacy are the primary concern for every bank activity. The more banks handle sensitive data, the more the industry is setting to get advanced. It is really tricky the way banks collect, use and preserve Personally Identifiable Information (PII). The RBI is trying hard on norms and technical advancements that will dictate this space both inside and outside India.

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