Technologies useful for Fintech growth
India is among the fastest developing Fintech markets on the plane with 6636 new Fintech companies.
The market size of the Indian Fintech industry is USD 50 billion in 2021 and is estimated at ~ USD 150 billion by 2025. The reputation of the Fintech exchange is set to develop from USD 66 billion in 2019 to USD 138 billion in 2023, to a CAGR of 20 pr. cent.
The Indian Fintech industry ecosystem sees a comprehensive range of sub-segments, including payments, lending, wealth technology (WealthTech), personal financial management, insurance technology (InsurTech), regulatory technology (RegTech), and so on.
Kunp Jhunjhunwala, CEO and Chief Founder, airpay said: “When the COVID-19 pandemic hit the world, only a handful of industries showed an upward trend, and the Fintech industry was one of the few that performed well relative to other sectors during this period. 2022 is a year of remarkable adaptation and transformation, while 2021 was a year of unparalleled disruption. “
“As we have seen, the essential technologies and trends are increasingly integrated, giving a massive impetus to fintech and financial industry innovation. Fintech solutions and apps have received robust support during the pandemic. Given that the Fintech industry continues to make finance simple, fast, “Practical and secure for customers – individuals and businesses – by using the most advanced and cutting-edge technologies, it seems certain that this support will continue to grow in the future”, he added.
The Fintech area in India has had a subsidy of USD 8.53 billion (in 278 schemes) in FY22.
As of May 2022, India’s Unified Payments Interface (UPI) has seen the partnership with 323 banks and has registered 5.9 billion month-to-month exchanges worth more than $ 130 billion. As of June 2022, India has 23 Fintech organizations, which have acquired “Unicorn Status” with a value of more than USD 1 billion.
Key Technologies Diving Fintech Growth:
Blockchain
For fintech organizations to disseminate and communicate secure and unmodified information across a decentralized organization, blockchain helps monitor information mining and other fraudulent exercises. It helps protect information wherever it is, once it is encrypted, and makes it easier to screen, understand and evaluate AI decisions so that people can rely on machine-driven knowledge.
The stock market’s suspicious practices, such as stock control, handling of deferrals and fees, and commissions from intermediaries can be removed through the use of blockchain innovation. When blockchain technology is used in fintech applications, cash can be transferred instantly, regardless of the amount.
Jhunjhunwala said: “Authentic information is the key to any business, and the more accurate and faster it is received, the better for the company. Blockchain or digital ledger technology is a structure that helps store business transaction records in databases, known as the chain. a network connected through node-to-node nodes.A blockchain network can track data such as agreements, payments, orders, accounts, production and many more assets.Practually everything of value can be tracked and traded on a blockchain network, reducing risk and The best part of this technology is that it can only be accessed, authenticated and modified by licensed network members. “
Artificial intelligence
At present, artificial intelligence (AI) technology is a key component. It helps fintech organizations automate routine systems and further develop results on a scale beyond human intelligence. The early use of artificial intelligence enables fintech organizations to identify hazards, prevent misrepresentations, automate common business and improve the nature of administration. This large number leads to further developed productivity and higher benefits.
“AI is one of the key technologies that most companies rely on to understand consumer behavior. It is also the most discussed and discussed in recent times. AI helps us recognize and detect patterns, predict and predict future events, create rules to optimize results, make good decisions by applying rules, and communicate with other people through digital or similar media.Machine Learning (ML), one of the most important AI components, is widely used in banking in areas such as – risk management, fund development prediction, fraud prevention and customer service, among other things “, said Jhunjhunwala.
IoT
Kunal Jhunjhunwala says: “The Internet of Things (IoT) is increasing the speed of financial processes, both internally (management and team organization) and externally (client administration and communication). With an IoT network, it is possible to connect to traditional monitoring and measurement tools. financial databases and sending data directly from one device to another. These days, manufacturing and smart cities have made the biggest progress in Fintech IoT. “
IoT has given the fintech business an exciting boost, especially in terms of security and installment management. Internet-of-Things can be tracked as portable store location frames, as well as network protection devices that securely cycle and distort installment data.
Biometric technology
Biometric’s technology undoubtedly has advantages for the smooth operation of the Fintech business, for the representatives and the customers. It increases consumer loyalty and works with the client relationship due to a remarkable client experience. Biometrics improves workers’ obligations and works with the safety of remote and office activities.
“Fintech companies solve the problems associated with authentication and verification of consumers, through biometric technology solutions. Biometric technologies include fingerprints, voice prints, facial, iris and speech recognition. Financial quality biometric technology will significantly change existing processes for money transfers, transfers, operations such as involves large sums of money, withdrawals and corporate banking. are ideal for protecting sensitive operations such as external financial transactions, “said Kunal.
Biometric technology also prevents breaches, such as data fraud and illegal tax evasion. It also reduces paper waste by keeping documentary records carefully.
Cloud Computing
“Cloud computing has brought many benefits to the financial sector across several areas such as – service, security, innovation and scalability. It is mainly important in financial services as Fintech start-ups and established financial organizations compete to offer customers and end users and more. “Speed and reliability and offer scalable 24-hour service in its digital products and services. Cloud computing enables all this cost-effectively, while providing extra security at a time when regulatory compliance is becoming increasingly stringent,” said Kunal.
Part of the significant benefits of taking on cloud computing in the fintech business is expanded adaptability, better security, driven development and an increase in versatility. These benefits currently form fundamental patterns that drive development in the fintech industry.
