We live in a world in which technology has brought about a great deal of change in the way we live and conduct business. Fintech innovations have changed the way our banks and financial institutions function and how we transact, invest and obtain credit facilities. The COVID-19 pandemic has, in fact, acted as a catalyst for the fintech revolution.
The adoption of financial technologies is firmly backed by some of the best digital Pioneer in india and is now being adopted as the norm by the administration and by financial authorities across the nation. Let us take a look at the continuing impact of these digital technologies on the financial services industry.
Digital Transformation in Financial Services
Banks and reputed non-banking financial companies such as Bajaj Finserv are now starting to adopt fintech solutions in response to the shift in consumer needs as necessitated by the pandemic and the ensuing lockdown. Banking and financial services will have to increasingly adapt to remote operations and digital service needs.
Both transactions and communication need to go online through mobile applications or web portals to ensure financial inclusivity for the masses and financial profitability and growth for the financial institutions themselves.
Setting Benchmarks in Digital TransformationÂ
With more and more retail banks and prominent NBFCs taking the digital transformation route, this could well be the benchmark for market leaders. “This is going to be a digitally driven decade”, says Sanjiv Bajaj, CMD of Bajaj Finserv and one of the best finance leaders of India. Customer expectations shall be the benchmark for financial institutions and meetings, expectations shall depend on the adoption of technologies that offer seamless and secure operations through mobile applications and similar technologies.
While industry leaders, in this sense, need to be highly intelligent, they also need to be judged on ease of operations. This will make financial services accessible to the common man.
Secure Financial Imperatives
Looking back, many of us can remember times when any transaction related to banking and investment involved long time-consuming trips to the banks. The investment was considered based on its low risk rather than ROI. With the development of the economy and money markets, we have started to look at diversification of investment and credit avenues.
The digital economy has added a whole new dimension to our economy. Security, however, continues to remain one of the top financial imperatives. This means fintech innovations will continue to focus on security, cyber protection, and fraud detection. Banks and financial institutions will need to refocus their digital transformations on these factors.
More Intelligence, More Power
The progress in digital transformation in banks and financial institutions needs to include higher investment in Artificial Intelligence, the Internet of Things (IoT), and Blockchain technologies. While financial inclusivity drives and rural expansion are increasing the consumer base of most banks and NBFCs, there will be a greater need for personalised services and customer support as well.
The use of these technologies can aid in the automation of all financial processes without cutting down on the personalised experience that is expected by the end customer.
Hiring Trends
The great Fintech revolution of India is still in its nascent stages. With time, however, it will greatly impact the hiring trends of the financial industry. With the greater emphasis on virtual banking and financial services, we should see a greater emphasis on hiring coding, AI, and Blockchain experts.
This will be done to harness local expertise and leverage digital technologies in scaling up business models without compromising on security features. Some of the best digital pioneers of India are now looking at hiring visionary techies to help their companies get to the next level when it comes to offering financial services.
The digital transformation of the financial services industry of India is still in its early stages. In a world that continues to be dictated by consumer behaviour, we are yet to see a great deal of demand for innovative and secure technologies that will help the end customer navigate investment, credit, and financial services with ease.
Financial technologies and innovations will continue to change the way our banks and financial institutions function. The digital transformation of these institutions will be focused on catering to customer expectations and providing a seamless experience to the end-user. As virtual financial services take precedence, banks and NBFCs will need to focus on AI and Blockchain technologies to offer both personalised services and security features.
