Fintech has changed the lives and habits of people by making it easy to trade, bank, exchange money, take loans without the need for physical human interaction.
Innovations and revolutions are what the technology sector has been witnessing in the last few decades. Especially finance technology, which is evolving as the fastest and most growing area in the global business today.
In a very short span of time, fintech has changed the way people transact and think about money. It has enlightened the need for digitalization, by bringing value exchange in real-time and the digital world “Cashless” alive. Businesses all around the world are bringing reluctant consumers forward to adopting the habit of digital transactions.
With this digitalization, lending services have become as easy as any other commodity, just at your fingertips. It is all through greater internet penetration and technologies that have made the whole journey of digital lending frictionless. Finance Minister of India Nirmala Sitharaman in an interview said that the valuation of India’s fintech industry is expected to surge to $150 billion by 2025 from the level of $50-60 billion seen in 2020.
Fintech is digital technology that has the potential to transform the provision of financial services spurring the development of new – or modify existing – business models, applications, processes, and products. Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), blockchain, and cloud computing are some technologies that are helping in building the trust factor between the consumer and fintech companies.
By integrating technology with financial services, the fintech industry has boosted its popularity worldwide and brought huge investments by various business verticals, increasing the efficiency of the businesses and their partnership for innovation and research. The fintech industry has been developing itself through the latest advancements. They have been following up on the trends to stay updated.
1. Financial Inclusion – Fintechs has the potential to reach to next billion. Technology cut the cost of operating small-size products at very reasonable cost of operations. Ability to service Tier 3 and beyond, servicing mid-income Indians is big potential.
2. HealthTech – HealthTech is driving innovation on products and digital distribution to increase the penetration of healthcare products. Indian healthcare services expenditure stood at $115 billion this year, with over $72 Billion of that being spent by Indians from their pockets (i.e., not paid by insurance). The Fintech for Healthtech, with payments simplification, is driving this change. Fintech aims at bringing modernization into the healthcare sector by bringing digitally specialized solutions. With the use of powerful technologies like AI, blockchain, machine learning and more, the inefficiencies which are commonly found in healthcare payment plans are eliminated. With fintech, the accessibility and affordability of medical care are bound to increase.
3. Artificial Intelligence & Machine Learning- AI and ML solutions have the potential to transform how financial firms deal with regulatory compliance, financial fraud, and cybercrime. And by using customer data for greater personalization, fintech can continue to offer products and services tailored to individual consumer needs.
4. Blockchain- With the use of blockchain technology, digital lending has become safer. It is a decentralized, distributed and public ledger that records transactions across many computers so that the record cannot be altered. With increasing focus on the payments segment and closely followed by securities and trade finance, blockchain will focus on evolving complexity and delivery timeframe; this will improve the operational efficiency of financial institutions.
Conclusion
The fintech industry though has revolutionized itself with the latest technologies still, this is just the start. As it is known that technology is everchanging, new advancements are made every day but never stop. Similar is the case for fintech which continues to work to bring simplicity and modernity together.
The risk of not adapting and thriving in the fintech revolution is bigger than not adopting while ensuring it follow the regulatory framework and cyber security.
It is no exaggeration to say that fintech is literally changing lives and habits by making it easy to trade, bank, exchange money, and take loans without the need for physical human interaction. This has been one of the biggest boons for this industry. The fintech industry has the potential for a big future, ultimately aiming to bring ease to the lives of everyone.
