With the world moving towards digitization and latest technological trends, India doesn’t lie behind anymore. In fact, India is emerging as a country that would give neck to neck competition to the financial giants in terms of FinTech establishments.Gaurav Dutt
FinTech companies are basically those business organizations that put technology to use in the context of finance. Putting finance and technology together, they generate optimized business results and provide better quality product/service outcome to the consumers.
Operating in the classes of personal finance, retail, financial institutions, and lending, the FinTech startups have already tossed a serious challenge to traditionally working finance based companies. Having said that, it is quite worth seeing which all trends of FinTech are rising or are going to be on the boom in the year 2018
Let us delve into the trends to get an overview of the Top FinTech trends for 2018 in India
The peer to peer lending methods has emerged to provide a way to people coming from different working and financial backgrounds to lend money from individual investors or from a group of investors in the P2P lending marketplace.
The new guidelines of RBI and the shift towards digital transactions have put P2P Lending startup into a sweet spot. With these, people can opt for money lending at a dignified interest rate from individual investors. P2P Lending is a win-win method of lending for both investors and borrowers.
India Stack always has had a big hand of Government as a support. Maybe, that is the reason for it being on the top charts of FinTech Trends. Again, the boom of digital transactions is to be thanked. India Stack basically provides a common and unique digital infrastructure to different ventures based out of technology and of course finance to up their market value.
Different entrepreneurs, collaborators, and creative contributors have relied on India Stack frameworks to reform their initiatives. Working on the 4 prime layers of the technology namely presence less layer, paperless layer, cashless layer, and consent layer, the India Stack has evolved as one of the top FinTech trends of India.
As for developed countries, the flows of cash payments have been estimated to be only 21% wherein India sees a yearly cash flow for payments to be calculated as 80%. The digitization and online payment methods have not only empowered smartphones but also have empowered the proximity-based payment methods.
While these payment methods are still taking baby steps in India, this particular FinTech trend is going to be a boom in the year 2018. The quick QR Code scanning or one-click payments is always considered as an easy and convenient option for payment rather than sticking towards cash flow. In India, Bharat, QR, Tez etc are some names of popular options.
The Blockchain technology which works on the Distributed Ledger Technology abbreviated as (DLT), has empowered its presence in the digital assets market. This year, a major exchange of Bitcoin was empowered through the Blockchain Technology.
The two major pillars of this technology are transparency and reliability that are heading towards the stage where the most number of people are continuing the usage of Blockchain Technology for ledging their digital currency and bitcoins. This has embarked the growth of the Blockchain which is also termed as the backbone of internet transaction these days.
The DLT, on the other hand, keeps the secure record of a person’s identity along with a proof receipt of the transactions done by the person.
The AI technology has not only took over the IT industry but also proving its knack in the investment market. In the FinTech zone too, the AI has a great potential in capturing personalized customer experiences, needs, and expectations with a particular business venture.
As a result of which, more and more business ventures are heading towards the AI technology to keep a track of their potential customers. Most BFSI based companies are planning to shift to this technology in the near future to capture regular insights of their business growth.
Seeing a rough time in previous two years, the Indian Banking System has been planning to go under a deep reform. Since everything is associating with technology trends today, so is Banking.
A number of FinTech companies have found to be collaborating with different banking organizations and with other financial organizations to provide them with software solutions for risk management, regulatory compliance, and fraud detection. On the other hand, some banking organizations have been adopting recommendation engines to capture the basic user’s requirements.
Insurance Tech basically acts as service providers to the insurers and big Insurance giants. With the latest technology and recommendation engines, they generate a report file for potential users and help in improving sales.
Not only that, they also help in managing risks associated with insurance amount and thus help in effacing profits. Insurance Tech has a huge scope to act as service providers not only for the individual insurers but also for banking organizations and other financial institutions. The technologies they empower are Machine Learning, AI, and the Internet of Things (IoT) to provide solutions and to gather consumer data.
Crowdfunding has been able to shift its name to one of the top trends of 2018 of FinTech. Crowdfunding operates on the idea of drawing a little portion of money from a large number of people through the internet (mainly). Since the idea of crowdfunding financially lends a helping hand to new business entrepreneurs and start-ups, it is becoming a wider concept.
Crowd Funding can be branched out to its two types: Reward Based which is not location based and Equity Crowd Funding which is basically a collective effort of a group of individuals to lend a support to a specific organization at one time.