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FinTech 2.0 — The Future

Pulak Srivastava
Jun 30 · 4 min read

When FinTech 1.0 first rolled up on the scene in the 90’s and 2000’s, it brought along ground-breaking innovations in payments, online banking and lending and credit-monitoring.

In fact, it’s safe to say that in the last couple of decades, no industry has been transformed to the core as much as the financial industry.

Right from mobile payments and digital banking to the era of e-commerce, the advent of FinTech has vastly improved the experience of businesses and customers alike.

Artificial Intelligence tech has great potential to disrupt and transform the BFSI industry all over again — FinTech 2.0. This revolution will help BFSI firms meet crucial strategic objectives like enhanced customer experience, cost optimization, personalization of service/offerings and keeping pace with changing regulations and competitions.

Top Trends

Here is a quick glance into the top trends where AI will bring value to both the customer and the business over the next wave of FinTech transformation.


The cost of transacting and moving money has gotten cheaper, faster and more reliable over the course of years, and FinTech 2.0 further aims to build on these innovations. In an era where the world is globalized and businesses deliver products/services globally, it is crucial for the BFSI industry to step up and free them from the constraints on payment. The customer in turn would be free to pay however they want, boosting experience of both the parties involved.

With AI transformation upon us, it wouldn’t be far-fetched to envision financial institutions without a physical premise, instead serving customers with a digital infrastructure to process services like payments, transactions and savings.


With growing digital footprint and touch-points, new vulnerabilities in identity and security have come up which necessitates the creation of intelligent risk tools set up to foresee, prevent and stop fraud.

Crypto and Blockchain are at the forefront of security transformations. With the financial footprint of a customer dispersed among several platforms, it is a challenge to verify an asset without compromising on the offerings. AI can help make intelligent decisions/predictions and bring about a transformation.

INSURANCE 2.0 (InsureTech)

The arrival of FinTech has caused a boom among the people willing to invest and insure their commodities.

The first wave of FinTech took the archaic insurance experience from the realm of papers to a digital world. The next wave promises to revolutionize insurance for both the consumers and the providers, by transforming processes such as underwriting, claims processing, account reconciliation, standard journal entries and compliance/reporting.

The consumer base will surely diversify with a renewed ease of business, and AI will be at the forefront of this transformation.


FinTech 2.0 is fundamentally changing credit by streamlining risk assessment, speeding up approval processes, document processing and verification, changing repayment schedules and save both time and cost in the process.

With the dawn of RPA coupled with AI, a lot of credit firms have already begun on the route to transformation.

REAL ESTATE 2.0 (PropTech)

Artificial Intelligence and Cognitive Computing is fast becoming the norm in many industries, and real-estate is no different.

Advances in AI have already begun the process of overhaul of an excruciatingly outdated and outpaced real-estate industry, and the coming years will see a huge shift in the way real-estate professionals go about their business.

Machine Learning and Artificial Intelligence in Industry

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