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A recent report by Bain and Co. recognized India as an early leader in increasing the exposure of the country’s fintech industry globally. In addition, the report states that the boom in smartphone adoption in India, which is expected to exceed 1.1 billion units by FY26, could increase the net valuation of fintech services in India by 3.5 times. , from 100 billion dollars to 350 billion dollars in four years. Experts believe that digital transformation has played a significant role in improving customer experience, strengthening value offerings, increasing revenue, and extending product offerings to multiple applications.
GenZ launches into financial knowledge
In a recent trend, Gen Z users are heavily influenced by e-commerce and online shopping, with frequent use of “buy now, pay later” (BNPL) options. Therefore, the market expects an integration of sales and services. . According to FIS Worldpay’s Global Payments Report, BNPL will account for 9% of the country’s overall e-commerce market share by 2024, making it the fastest growing online e-commerce payment method in India. So much so that many companies have adapted their business models to adapt to this new trend and are developing strategies to meet the demand for BNPL among young consumers.
Keeping in mind Gen Z and the impact of social platforms, there is a need to bring transparency, customer experience and a predictive approach that could drive the new era of banking and financial products on offer. India’s young working population appreciates the individualized financial solutions that neobanks have to offer, which is what makes this industry so alluring. An interesting survey by C-suite (CXO) executives indicates that fintech infrastructure (for banking as a service), consumer finance, and neo-banking emerged as the top three fintech issues for which business leaders are the most optimistic in the short and medium term. term.
Young people these days are much more comfortable with digital technology because they grew up with it. They are more comfortable not only towards the web, but also directly towards mobile applications. This also applies to their financial services needs – payments, investments, loans and many more. With this in mind, organizations are now understanding their needs and building a lending infrastructure where their real-time money problems are solved with solutions. These services also include many BNPL products such as health tech, education tech, and many more, giving them affordability and scalability.
Trends leading the fintech industry to grow
Thus, the fintech is developing a secure and simple payment for all individuals. Here are five tech trends that will define fintech in 2023:
Using AI and ML for Decision Making
An emerging trend in fintech is being driven by artificial intelligence (AI), including banks and other financial institutions. Fintech companies can thwart fraudulent transactions because they can help identify patterns of fraudulent activity and prevent fraud from occurring. On the one hand, AI technology can speed up processes and provide more convenience.
However, given today’s predicament, with online fraud on the rise, fintech sectors could end up being a target for cybercriminals. To avoid these fraudulent transactions, AI and ML are supported by a subscription model, which helps reduce the number of defaulting customers who are automatically approved.
These tools not only help new customers maintain proper dashboards, which don’t have a credit history, but also create new variables and data points, which help in the creation of increasingly complicated models. that improve risk prediction or automate processes. This increases the effectiveness of security measures and advances the use of data outside the intended list of common lending practices. As a result, future market trends can be predicted faster and more accurately.
A step ahead in the world of personalization, the fintech industry takes the choices, preferences, and demands of potential customers to the next level. The concept of hyper-personalization works well with AI, where customer data is used to make the process work.
AI helps develop models and draw conclusions which are then used by businesses, using consumer data such as past experiences, reviews, purchases and even clicks. In today’s world, consumers expect their fintech providers to meet their needs and recommend relevant products and services, just like any other store.
This personalization is not about the next best product on offer, but about using data and analytics to predict customer demands, delivering them to customers at the right time. This can eventually increase trust with existing customers by developing new customers and deepening existing customers.
Great fintech app
Mobile banking applications today aim to cover many financial products. At present, it is very obvious that super apps are becoming the new trend and the one-stop-shop to meet the needs of these consumers.
The trend has evolved around the world, shifting the lifestyle towards digital banking and financial services. These super apps are the aggregators, which continuously develop online experiences and connect customers to the market. This created an existing ecosystem for digital banking and financial services; therefore, it solves problems by offering and expanding.
Voice activated technology
Voice assistance can prevent fraud because voice is the most natural method of communication and one of the most difficult modalities to imitate. Artificial Intelligence (AI)-enabled voice assistants can handle payments, card activations, password resets, and set payment reminders for customers, allowing customer service employees to focus on more difficult customer demands..
The fintech movement is rapidly gaining momentum, and in 2023 it is expected to thrive more in banking and payments. The fintech industry and related developments could nevertheless have a significant impact on the organization. With these emerging trends, Fintech will help transform banking into a safer and easier experience for consumers.