Every decade an industry leader or an evangelist comes out with a buzzword that best defines the transformation and transition that is taking place in a business landscape. This decade has witnessed the term ‘FinTech’ being thrown around by anyone and everyone to best describe the transformation that is taking place in the financial industry. A term that has become mainstream, and a concept that isn’t foreign any longer, FinTech has become an offering by almost any and every technological organization.
How can we define FinTech?
For anyone living under a rock, FinTech can be simply defined as products and services that make use of online and digital technologies across financial and banking industries. As with any transformation, there is someone who is bearing the brunt of this development. In this case, it is the banking sector. Having seen minimal innovations across decades, the banking sector has stagnated heavily, finding it extremely difficult to keep up with the present times.
A disruptive force for business, fintech is helping organizations and verticals improve their operations by providing wealth management, payment-related processes among other myriad offerings. Along with adding exponential value to businesses, fintech based revolutions are creating higher value for consumers by accentuating their experience through cutting-edge and seamless processes. Owing to its universal reach and practicality, fintech has now found its importance across numerous business verticals.
Business benefits of adopting fintech solutions?
Fintech is all about transforming and re-shaping a business.
- Saves time and reduces costs considerably
- Improves business processes for SMEs
- Expands your financing options
- Streamlines the finance workload by automating bookkeeping and accounting
- Provides solutions to all your business needs in the financial market including Payments, Lending, Investing, Digital Banking, Crowd-Funding and much more
- Faster and 100% secure processing
FinTech across industries
Indian Tech-friendly companies have been rolling out financial services since quite some time now. A lot of industry big-wigs have taken the fintech route, going full throttle on the strategic mind-set of customer-first values. Ola, India’s leading cab-hailing company entered the fintech segment way back in 2015. They took a strategic decision to provide innovative and trustworthy financial products available at the customer’s fingertips and provide them a hassle-free experience. Ola Money offers services such as short-term credit, mobile wallet, insurance, and utility bill payments to its users. E-Commerce major Flipkart is also quite deep into its fintech endeavor. From providing consumer credit, device insurance to seller financing, Flipkart’s fintech category grew 40% in the year 2019.Flipkart gave way to industry-leading Fintech initiatives like No Cost EMI and Flipkart Pay Later which were truly appreciated by the consumers.
One of the most prominent verticals that makes use of fintech solution provider(s) is the on-demand economy. From hailing a ride to ordering your next meal, platforms with integrated payment gateways have become a part of our daily life. With unprecedented demand, these platforms are expected to perform numerous financial solutions, like facilitating payment transactions, enabling expense management, delivering automatic invoices without any time lags.
Another segment that has made rapid progress by embracing the transformation brought by fintech is the healthcare industry. At a time and age when patients and healthcare providers are looking at a swift and efficient exchange of services, there was a dire need for seamless payment solutions. Fintech not only brought a tidal shift but revolutionized the whole experience for every party that is involved. This mechanism has also enabled numerous healthcare startups to spurt that include the likes of Practo, Pharmeasy among others.
While the healthcare industry needed a change, one place that no one expected fintech to create the waves that it did was the retail industry. Since the introduction of fintech, customers can interact and experience the retail world better. Through the omnichannel approach, retail has integrated fintech technology to offer a simplified payment mechanism, easing out the checkout process, thereby helping retail expand its wings to a wider audience. The payment gateway integration has also brought in loyalty programs, ensuring customers are catered for throughout the retail experience.
Along with revolutionizing prominent sectors, fintech has also brought a breath of fresh air to crowdfunding platforms. While the intent was persistent, security measures and unreliability always came in the way for individuals to explore the crowdfunding platform. Prominent fintech organizations have streamlined the process by making peer to peer payment and transactions simple and effective.
Easebuzz, a fintech organization stands as a testament to this development, wherein it facilitates transactions between parties with the help of a simple link. Thanks to the ease in completing payments, Easebuzz has seen a remarkable growth in traffic, from freelancers, crowdfunding initiatives, entrepreneurs, merchants among others.
With the growth of fintech, there has been a steady change among the banking firms in the world too. In India and across the globe, traditional banks have started collaborating with fintech organizations to expand their offerings while focusing on growth. It is also noteworthy to mention that fintech organizations across the world have moved to a lending phase, which over the years has matured with well-established norms and boundaries.
Future of FinTech
– Influence across blockchain and cryptocurrencies
Though we’ve stated that fintech is the hottest buzzword around town, one must keep in mind that the innovations and transformations the segment is bringing are just the start. Its expansion is bound to be unprecedented across various verticals. One of the areas where fintech is molding itself for the future is blockchain and cryptocurrencies. Still in its nascent stage across the globe, without a defined set of rules and regulations, the impact of fintech in this segment will be exciting to watch. Similar to how fintech challenged the conventional norms of banking, blockchain technology holds similar potential, especially with its impetus on the safety and security of sensitive information.
– Influence of AI
While artificial intelligence or AI has slowly seeped its way into our daily lives, its influence in fintech has still not been explored in its entirety. With mobile transactions on the rise, one cannot overlook the impact of artificial intelligence coupled with fintech. AI will also bring with it machine learning and predictive analytics that understand consumer behavior better and deliver an experience that is unparalleled.
– Enabling the Emergence of Digi Banks
While traditional banking has already seen a considerable disruption, there will be propulsion towards digital-only banks. Utilizing fintech without physical space and entities, these banks can focus their energies on catering to the consumers better.
Owing to these changes, one can see a massive influx of investments across the segment in the coming few years. With surging demand for an efficient fintech solution provider in India, the new decade is just the start for a busy future. It is also the right time for businesses across verticals to power themselves up with the right fintech solution provider to be prepared for what the future holds.
Financial Tech is here to stay. Are you ready to ride the fintech wave? Easebuzz is a leading Fintech API solution provider helping businesses build their Fintech Ecosystem. Get in touch with us at firstname.lastname@example.org