Amidst the global economic downturn in India, Fintech is laying a track path for the digitisation marathon. Also, the Indian digital economy is expected to grow at CAGR of 4.6% between 2020 to 2026. Banks and financial institutions are facing a rapid technological transition enabled by new digital technologies. Fintech is a dynamic sector which is growing with an extensive potential to bring efficiency and cost-effectiveness in Intermediation, Financial Inclusion, and Retail Payment Services. Retail payment solutions based on financial technologies are widely being chosen by people over brick-and-mortar bank-based transactions. Fintech is ever-evolving and aptly highlights the integration of Finance and Technology, and the innovative concept enfolds every financial feature from mobile banking apps to mobile payment apps.

Financial Inclusion of underbanked and unbanked segment of the country is a major consideration for the companies in the FinTech landscape. Here are few reforms that can propel the Fintech ecosystem, lets understand how banks and financial institutions embrace new technologies and moreover the possible ways in which FinTech can help achieve better financial intermediation and meet social objectives like serving the rural belt of India where people still wait in the banking queue for hours .

Artificial intelligence has already made significant contributions to the FinTech sector and will continue to do so in the future. The combination of AI and FinTech has the potential to transform the way we manage our finances, invest our money, and make payments. Artificial Intelligence and financial security through face and fingerprint authentication adds the extra security ply to prevent frauds and exploitation in the hand of swindlers. AI is used in finance to enable data patterns that can be automatically recognised, examined and modified, however if there is any sudden disruption in the pattern, then warning of suspicious activities is generated promptly.

Here are some of the ways in which AI is already being used in FinTech:

• Fraud Detection
• Personalized Financial Advice
• Credit Soring
• Trading
• Chatbots for 24x7 Customer Support
• Improved Risk Management
• Improved Customer Experience

Being able to pay with a gesture instead of cash, card, or any device is a different feeling and convenience altogether. Wearable devices in FinTech have already made a significant impact in the industry and are poised to play pivotal role in the future. These devices are worn on the body and can potentially monitor various health and fitness metrics while revolutionizing the way we manage our finances. Undeniably it is one of the most potential payment trends for enterprise in India.

Wearable gadgets enable banks to access voluminous data as the devices can be worn by customers most of the time. Gained Customer intelligence can be further used to design personalised services, enhancing customer experiences. A combination of IoT and wearables can lead to an omnichannel customer experience.

Here are some of the ways wearable devices are used:

1. Payments
2. Identity Verification
3. Fraud Detection
4. Real-time Financial Advice
5. Biometric Authentication

Alternative finance refers to any form of financial services managed outside the parameter of the traditional banking system. It is becoming increasingly popular, especially in the fintech industry, for providing access to businesses that failed to obtain funding through traditional channels. The futuristic FinTech reform helps financial inclusion by providing financial accessibility to the underbanked section of society. With transparency and accountability, it conducts end-to-end transactions in a secure environment.

Benefits of Alternative Finances

• Increased Access to Capital
• Faster Access to Funds
• Diversification of Funding Sources
• Flexibility
• Innovative Financing Models
• Transparency

Buy Now Pay Later or BNPL is one of the most influential trends to redefine the future of Fintech in India. BNPL offers an exceptional customer experience by allowing customers to purchase without having to pay upfront. The feature can be useful for consumers who do not have access to credit card or other forms of traditional credit. BNPL enhances sales for merchants by making it convenient for consumers, giving them more options leading to significant revenue increment. Few years down the lane, BNPL providers could categorically partner with traditional financial institutions to stay competitive in Fintech space. This could provide consumers with a more holistic view of their finances making it easier for them to manage their money.

Finance and Technology have been evolving, and every so often, a new and more innovative change appears in the market that adds to the convenience and the layer of security for customers . Pay10 is amongst the leading payment aggregators in India, and that has been putting in efforts to enhance financial inclusivity and empowering the underbanked section of the society. We drive our passion for supporting SMEs by elevating the customer experience with our device-agnostic platform and robust infrastructure. We offer highly secure and certified services besides responsive customer services to ensure that the issues are resolved in the minimum time possible. For more information, check our website or connect with our experts.