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A recent Bain & Company report recognized India as one of the first leaders to boost the global exposure of the country’s fintech sector. Moreover, the report states that smartphone penetration in India will cross 1.1 billion units in FY26, which could push the net valuation of fintech services in India by 3.5 times, from $100 billion to $350 billion in four years One hundred million U.S. dollars. Experts believe that digital transformation has played an important role in enhancing customer experience, enhancing value delivery, increasing revenue, and extending product offerings to multiple applications.
GenZ ventures into financial literacy
In recent trends, Gen Z users are heavily influenced by e-commerce and online purchases, often using Buy Now Pay Later (BNPL) options, and as a result, the market expects consolidation across sales and services. According to FIS Worldpay’s Global Payments Report , by 2024, BNPL will account for 9% of the country’s overall e-commerce market share, becoming the fastest growing e-commerce online payment method in India. So much so that many companies have adapted their business models to this new trend and are developing strategies to meet the demand for BNPL among younger consumers.
Keeping in mind the influence of Gen Z and social platforms, transparency, customer experience and predictive approaches need to be brought to drive a new era in banking and the financial products offered. India’s young working population is appreciating the personalized financial solutions neobanks have to offer that makes this industry so alluring. An interesting survey by the C-suite (CXO) reveals that fintech infrastructure (for banking as a service), consumer finance and neo-banking have emerged as the most bullish term fintech issues for business executives in the short to medium term.
Nowadays, young people are more comfortable with digital technology as they grow up with it. It is easier for them to move not only to the web, but directly to mobile applications. This also applies to their financial service needs – payments, investments, loans and more. With this in mind, organizations are now understanding their needs and building a lending infrastructure that will solve their real-time funding problems. These services also include many BNPL products such as healthtech, edtech, etc. which make them affordable and scalable.
Leading the development trend of the fintech industry
Thus, fintech has developed a safe and simple payment method for everyone. Here are five technology trends that will define fintech in 2023:
Decision making with AI and ML
Artificial intelligence (AI) is driving an emerging trend in fintech, including banks and other financial institutions. Fintech companies can disrupt fraudulent transactions because it can help identify patterns of fraudulent activity and prevent fraud from happening. On the one hand, artificial intelligence technology can speed up the process and provide more convenience.
However, given today’s difficult circumstances, the fintech industry could end up being targeted by cybercriminals when online fraud is on the rise. To prevent these fraudulent transactions, AI and ML are powered by underwriting models, which help reduce the number of defaulting customers who are automatically approved.
These tools not only help new customers with no credit history maintain proper scorecards, but also create updated variables and data points that help create increasingly complex models that improve risk predictions or automate processes. This increases the efficiency of security measures and advances the use of data outside the program’s list of mainstream lending practices. Therefore, future market trends can be predicted more quickly and accurately.
As a pioneer in the field of personalization, the fintech industry is delineating the choices, preferences and needs of potential customers to a new level. The concept of hyper-personalization works well with AI, where the customer’s data is used to operate the process.
AI helps develop patterns and draw conclusions that businesses can then use, using consumer data such as past experiences, reviews, purchases, and even clicks. In today’s world, consumers expect their fintech providers to fulfill their requirements and recommend relevant products and services, just like any other store.
Rather than delivering the next best product in context, this personalization uses data and analytics to anticipate customer needs and deliver them to customers at the right time. This may increase trust in existing customers by extending new ones and deepening existing ones.
Super Fintech App
Today’s mobile banking apps are designed to cover many financial products. By now, it is clear that super apps are becoming the new trend, a one-stop shop for these consumer needs.
This trend has evolved globally, shifting lifestyles towards digital banking and financial services. These super apps are aggregators that continuously develop online experiences and connect customers to marketplaces. This builds on an existing ecosystem for digital banking and financial services; so it solves problems by providing and extending.
voice control technology
Voice assistance can prevent fraud because speech is the most natural form of communication and one of the hardest to imitate.Artificial intelligence (AI)-enabled voice assistants can process payments, card activations, password resets, and set payment reminders for customers, freeing up customer support staff to focus on more difficult customer inquiries.
The fintech movement is gaining ground rapidly and is expected to flourish further in banking and payments by 2023. Nonetheless, the fintech industry and its associated developments could have a significant impact on the organization. Along with these emerging trends, fintech will transform banking into a safer and simpler experience for consumers.