The future of FinTech

The technologies associated with FinTech and creative ideas have largely changed the face of Indian financial services. With a world adoption rate of 87%, India is way ahead of the global average of 64% in the FinTech adoption race. By 2030, the promising Indian FinTech market is expected to generate $200 billion in revenue and $1 trillion in AUM, as suggested by a study conducted by EY.

Over the past ten years, FinTech has had a significant impact on the global financial services sector. Indian FinTech is growing as a result of a number of encouraging initiatives taken by the government and relevant regulators, a thriving funding environment, a thriving VC ecosystem, undeniably huge demographic opportunities, high FinTech adoption and access to talent and technology for the entrepreneurs creating the new India .

There are certain issues with this, including privacy and data security threats in partnership settings and uneven use of digital financial services, but every cloud has a silver lining, and it’s a significant one in this case. FinTech has enormous opportunities compared to its difficulties. In view of traditional FS players’ under-penetration in rural, aging population, unorganized and gigs, financial inclusion continues to be a government priority.

Opportunities for FinTech:

• The traditional banks in India have done a poor job of providing affordable and quality financial services to the general public, no one wants to visit a physical bank, wait in long queues and complete a lot of paperwork. This is why digitized-only banks are now being created to allow account opening and money transfers anytime and from anywhere. It can lower costs, expand availability
• Digitization is one of the sweeping revolutions that has affected all industries, including banking. Massive technological and structural changes are currently taking place, and they are quickly emerging as the new norm. Efficiency and user-friendliness have increased with the rise of digital-only banks. Because financial services.
• FinTech has completely changed how financial transactions are carried out and completed. Most payments are now made online through online banking or mobile apps, eliminating the need for people to physically visit banks for such basic tasks.
• FinTech services are flexible, fast and cheap, achieved by advanced technology. Virtual operation, flexibility and not being regulated like a deposit institution or cash from venture capital means that FinTech can be efficient even with lower prices.

Challenges

Data protection and application security

Due to the nature of their business, FinTech companies retain vast amounts of extremely sensitive customer data, including social security numbers, credit card numbers, income and investment data and more. This information is always vulnerable to transfer because telephone and online banking services are used more frequently. This information is therefore very sensitive. Therefore, there is always the risk issue along with the application security and data protection of FinTech. Information security is becoming more and more important.

Regulatory and Compliance Laws

Starting a financial business is challenging. It is now much more challenging to get approval to start a FinTech business due to fraud alerts and data breaches. Apart from being difficult to comply with, these restrictions also make it challenging for FinTech companies to enter the Indian market. Make the regulation work as a strict regulation to prevent fraud. They also act as major obstacles for new FinTech firms. Before they can start operating, FinTech start-ups must satisfy a wide range of conditions.

Personal services

As we all know, it can be challenging for businesses to adapt and offer customized services. Despite being the most important and vital component of banking, businesses find it difficult to provide. In today’s context, personalization is interacting with a user in real time via their preferred channel. Customers define personalized services as services that are specifically designed to meet their unique needs. On any other basis, they are not willing to come to an agreement.

Technology is developing at a rapid pace and the Indian population is adapting quickly to these developments. Also, people are increasingly relying on mobile phones for almost all payment and banking needs. This evolution of financial services is making people’s lives smarter!

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