FinTech trends for entrepreneurs beyond 2020

Entrepreneurs in the FinTech space have had to rethink their strategies to drive growth across their product offerings and are applying technology to revolutionise access to credit and payments.
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"There are decades when weeks happen and weeks when decades happen"

This has been one of the most repeated quotes of this year. 2020 and the Covid-19 pandemic have left a deep impact on millions of lives around the world. Much has been written, spoken, and analysed about a microscopic organism that managed to bring the tallest to their knees.

With recent news suggesting that there is a positive downward trend in the infection rate in India and things beginning to look up, one can only hope that this is a trend that continues and we emerge out of this crisis.

Every crisis is an opportunity and this one is no different. Monumental levels of behavioural shift and transformation have occurred which was neither imagined nor predicted before March.

This behavioural shift marked by a heightened focus on health, improved awareness for basic hygiene, and corporate India's adoption of work from home policies.

Financial situation in most families continues to be fragile and the pandemic is reinforcing, albeit harshly, the importance of being smart with money. This behavioural shift creates a huge opportunity for entrepreneurs in building technology that touches a billion lives.

A few trends within FinTech are emerging as clear indicators, and it is important for businesses of all scale and size to rethink their approach to evolve at a robust strategy to not just survive but thrive.

Retail investments and trading

A trading boom in the US added a record number of retail accounts and daily average revenue trades mirrored in the growth shown by a few companies which continue to add lakhs of retail users to the platform every month, a clear trend emerges in the space. According to recent press releases, a leading Indian financial company averages about 50-60 lakh daily trades. Clearly, there's a long way to go and this sector is only getting started.

Personal finance

The fragility of not just job security but also, and more importantly, human life is now more real than ever in recent history. There is an immediate need to not only manage finances easily but also to come up with new products and solutions aimed specifically at users with limited finances.

Innovation in this space would be driven by a product's ability to show real and measurable value to a user (If you thought D'uh, I'm probably with you) just as how innovation in trading is driven by the need for low-cost models.

Payments technology

Is payments technology new to India? No

Has it been the among the fastest growing business models in India? Yes

Is there extensive digitisation of products and services? Probably

Is the adoption of technology such as UPI happening at a rapid scale? Yes

Has the value to consumer maximised? No

And therein lies the opportunity. An interesting product that a Hyderabad based NBFC launched recently is set to revolutionise how Indians are going to access credit and payments through a unified interface. Through this solution, hoping to become the default credit option for the little guy, and the payments eco-system at a fundamental level.

Blockchain

Blockchain is a word many use but few understand and fewer still have been able to adopt. However, with the rise in awareness of the underlying technology, we might be able to find more ways to adopt it into our products and drive innovation.

There are indicators that blockchain technology would get adopted in a larger, institutional sense in operational processes.

Data, privacy and security

A recent twitter trend involving Airtel and its data policy brought forth an interesting and much needed discussion on how companies collect, store and utilise data. And this is a lot more relevant as we look to build products that are relevant for 2020 and beyond. Adoption of digital banking and financial products presents new challenges every day.

Consumers everywhere are, rightfully concerned about ensuring that their data remains safe and accessed only for such purposes are relevant to the services they need. As the awareness of this issue grows, it also creates an opportunity to provide creative solutions which address the consumers' concerns.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)