FinTech: The In-Tech
Technology has changed the way we function, everything from shopping to socializing as well as even the financial services industry has turned on its head. Over the past few years, a horde of FinTech startups has emerged, using technology to make investing, making payments and even getting a loan a lot easier for people.
A convergence of technology and big data, enabling all sorts of companies to harness and analyze information in new ways, whether it’s coming up with a personalized investment plan or approving a loan through a different underwriting process, Indian FinTech companies are adapting to the new changes in Indian economy in the form of intelligent data driven platforms.
Traditionally, the Indian financial services sector is characterized by brick and mortar — branch banking, labor intensive banking services, manual and paper based processes with limited straight through processing-despite continuous investments in technology and systems by Indian Banks and Financial Services Institutions. Hence, there is a very high degree of customer friction in the areas of customer onboarding, KYC and branch banking services. This inefficiency in the system presents an inherent opportunity for data-driven analytics led FinTech business models in reducing cost of acquiring and servicing customers, eventually leading to a greater penetration of financial services and insurance products in the market.
Time has come for India to embrace this change leading to evolution in the finance sector.