A Peep Into The Future Of Fintech

A Peep Into The Future Of Fintech

The financial and technology verticals have played a major role in shaping the economic and industrial set up of the world. They can be credited with heralding groundbreaking changes in the global economy and in determining how business is conducted around the globe. Hence, it’s no surprise to see the two industries cross paths and fashion what is called the Fintech sector. Imagine, you can now apply for Loans and Credit Cards online.

To put it simply, Fintech is the child born out of a marriage between the technology and financial sectors. It showcases how the finance industry can leverage technology to simplify and speed up processes which are often considered complicated and time-consuming.

Currently, there are two trends shaping the Fintech sector. They are:

  • The mobile revolution and
  • Advancements in digital technology

We were curious to know how the two trends could help temper the troubles in the Fintech world. And look who we found to give us a low down on the topic! Our in-house genius – Chief Technology officer, Murari Sridharan.

Murari is our high-speed processor; our Master of Technology. His work and insights have been crucial toward ensuring fast turnaround times on all loans and Credit Card applications received by us. With that said, let’s find out Murari’s take on the trends and challenges currently prevalent in the Fintech industry.

Let’s knock down the challenges at the outset.

Q. Which are the biggest challenges faced by the Fintech Industry?

“Issues like cybercrime and security continue to remain core concerns for the Indian Fintech sector.”

The biggest threats to technology are cybercrime and breach of online/ offline security. When you are looking to secure the tech make up of a Fintech, it requires a lot more smarts than setting up anti-virus on your laptop. At a company, you have to pay attention to network security and hardware security (servers, storage) while keeping a sharp eye on the radar for any unwanted incoming.

On a broader scale, Fintech industry requires implementation of strong security measures across servers, IT assets, point-of-sale machines, ATMs, Credit and Debit Cards and everything else that can fall prey to cybercrime and unauthorised access.

Q. Having said this, the next question that comes to mind is what makes Fintech so vulnerable to cybercrime?

It’s the rapid technological advancements! Evolution and innovation in the tech industry happen at lightning speed. As you warm up to a certain tech way of life, a superior and better technology is thrown in your face. Deal with it now! If you do not keep up to date you risk falling victim to the hackers and other online goons who, in spite of the outlawed nature of their work, always excel at their job.

Though there are many sophisticated security measures in place to keep the criminals out, there are many other challenges that the Fintech industry must combat.

Cybercrime aside, it is extremely difficult for banks and other financial institution to keep pace with the speed at which technology improves. If you look at products of the Fintech world—mobile wallets, paperless loans disbursal, robo-advisory services—they come from tech labs rather than as innovations from the finance industry.

Another facet of this problem is acceptance of new technology. Service providers and consumers both need time to accept new technology. Mobile wallets have been around for some time now, but they have gained acceptance and widespread popularity only in recent years. People take their time, and for them to accept a technology it should be easy to use and easy to integrate in their daily lives.

“What is more important is to build a modular scalable infrastructure that can keep up with the evolving technology and handle increasing volumes,” says Murari, adding that this needs to go hand in hand with in-depth data analyses of digital footprints left by banking customers. He emphasizes that the next piece in the Fintech puzzle is going #Paperless. This involves eliminating the process where documents need to be handed over to a banking representative in person.

An interesting point Murari makes here is that in spite of all the technological innovations, technology in itself is not a ‘competitive advantage’. It’s not about having the smartest analytical tool, latest hardware, or the most interactive software; it’s about making the best use of the technology you own.

Additional Reading: Go Paperless With Your Loan Application

Q. What is BankBazaar’s role in the Fintech industry?

It’s safe to say that BankBazaar is a pioneer of the paperless, presence-less banking. What does this mean? You can apply for Loans and Credit Cards online and not worry about the documentation process. You can upload those too online. So, beginning from your search for a loan to final disbursal, you complete each step online. This speeds up the application process and cuts short the turnaround time.

Now, implementation of every new process brings new security challenges. To this end, BankBazaar has paid due attention to building an infrastructure system that is secure and one that can be seamlessly tied in with new technology.

“By tying the two together, BankBazaar has tried to gain a deeper understanding of the customer. As a result, it has helped to provide personalized service to every customer instead of taking a one-size-fits-all approach.”

Q. Mobile is everywhere. What role does it play in the Fintech sector?

Technology is a boon for the finance industry. The biggest challenge for the banking world was to reach out to the masses with its offerings and win new customers in a cost-effective manner. As the banks struggled to find a solution to this problem, smartphones made an appearance. Thus, banks found an effective way to connect with large sections of the population. Apps offered 24 hours banking. This change was augmented by the introduction of online payment. No more queues and taking breaks from work to deposit and withdraw money. Democratising of the financial industry threw open the playground to pure tech players, who used their ingenuity and expertise in the field to find solutions to the problems of the banking world.

In the same nerve, it’s the dual forces of mobile and online payment that have brought about an incredible, positive change in the banking industry.

Q. What’s the latest in the Fintech Space?

One thing that is happening already, and is expected to gain further momentum in the coming days, is instant, presence-less, paperless, cashless delivery of financial products using digital and paperless techniques.”

Reiterating the previous point, mobile has definitely been one of the biggest drivers of the paperless move. This coupled with Unified Payment Interface, biometric recognition and e-sign services have made banking services ubiquitous.

What’s next? It’s the role big data and artificial intelligence will play in the Fintech sector. Big data and artificial intelligence, though, have been around for a long time, gained momentum as companies moved their businesses to the cloud and the need for excellent customer service became paramount. One can cite the example of Microsoft, a household name, which moved its entire suite of office tools to the cloud and launched its artificial intelligence tool Cortana in 2014. This helped the company put a check on piracy and record a rise in revenue.

The same trend is expected to sweep across the Fintech sector. Big data analytics and artificial intelligence will help make money management and the process of investing simpler and customer specific.

If we talk about security, the cryptography method ‘blockchain’ has been garnering all the limelight. You’ve probably heard the term during the Bitcoin rage. Blockchain decentralizes online transaction procedure, thus allowing for faster and safer money exchange.

Q. So how will blockchain help the banking industry and the consumers?

For the banking industry, it means access to technology that provides a faster, safer and cheaper method of transaction. For the consumers, it means benefits on transaction fees.

“We foresee the use of blockchain technologies for specific cases within the banking industry.”

To sum it up, banks are poised to go paperless. This will result in increased efficiency for the consumers and a dip in costs for the banks. Going paperless means taking banking to every nook and cranny of the country and to every individual, even those without a credit history.

“Banks will adopt new technologies like Aadhaar online authentication and India stack services like eSign to reduce service delivery times from many days/weeks to instant service.”

Additional Reading: All About The Paperless Initiative

The banking industry is indeed poised to undergo major changes. It’s wiser to stay prepared by joining the digital wave. Moreover, with demonetisation underway it’s a good time to ditch your leather wallets for online wallets. To load your online wallets, we are here to help with amazing Credit Cards.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: 'Note' worthy Aadhaar ExpertSpeak News

About Murari Sridharan - CTO, BankBazaar

When it comes to technology, Murari is the undisputed superstar! With a PhD from Iowa State University, this former GM Engineering at Microsoft Redmond ran the engineering team that launched Microsoft's digital assistant Cortana. Murari packs a hefty punch with 12 patents at Microsoft and has chaired two global internet standards groups, which have, among other things, set the global standard for TCP's congestion control mechanism that enables proper functioning of the internet.

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