It wouldn’t be wrong to say that the financial technology has become a new religion for every other aspiring entrepreneur. Catching the latest trend, now and then, someone is coming up with a promising idea with an aim to offer salvation in the troubled financial industry. Even the government is providing a strong push for financial inclusion, startup activities, and digitization with the introduction of policy initiatives. These include programs like Startup India, Jan Dhan Yojana, Aadhaar Adoption, etc., thus providing a strong back in support to the Fintech segment in India.
With the payment segment reaching its pinnacle, there are several new segments too which are gaining the attention of corporates, entrepreneurs, and even individual investors like you.
Considering all these aspects, I have done a little hard work for you guys and listed down a few of the trends that we’ll soon get to see in the Indian Fintech segment which is changing with lightning speed. So without any further ado, let’s learn more about them!
1.The Advent of Mobile App for Wealth Management
With the explosion of fintech startups in India in the past five years, several digital platforms have introduced their mobile applications. These apps promise to demystify the complex financial processes of wealth management, provide personalized customer support, and are available round-the-clock as per the investor’s convenience.
Mobile applications offer easy access to the various tools and recommendations from the experts in a cost-effective manner. They provide the facility of investment in various instruments. This is a great solution to the perennial problem of getting started as an investor at a young age to maximize the power of compounding when it is most beneficial, but when the employment income is at its lowest. Even the least tech-savvy investors could enjoy these services and use such apps to create a well-diversified investment portfolio.
- Blockchain and Digital Wallets with Multi-Currency Exchange
With the facility of multi-cryptocurrency exchange services, Indian investors now have the opportunity to buy, sell, hold, and trade their digital coins directly on their registered exchange. Wave goodbye to the stress of exchanging your currency even when traveling in a foreign land. The use of digital wallets has increased exponentially, the reason being that the transactions here are easy, much faster, and secure.
This, on the other hand, also provided direct access to the customers’ data to the entrepreneurs. Data being the one that they used for registering their digital and block chain wallets. It further helped the fintech platforms as they adjusted their market strategies accordingly.
There’s no denying the fact that robo-advisory will soon take over the traditional method of financial advising. It is supposed to make the experience of investors easier. However, there are a few pitfalls that this technology has to overcome which include gauging the inputs provided from user-end being true or not and adjusting advice to account for or balance out any inherent psychological biases of the investor.
Once they do so, it would be hard to compete with these AI-powered robo-advisors that provide digital financial advice based on mathematical rules or algorithms. They will be the next vogue as investors are seeking automated opportunities for investment with cost-effective solutions.
- Secure Payments Using Biometrics
Security is the key when it comes to mobile applications, especially the ones belonging to the fintech group where often a huge amount of money travels to and fro. It is expected that by 2020, mobile payments will be at its peak, reaching the volume of $503 billion. To meet such huge demand smoothly, there’s a rising question on the security.
With an aim to make consumers feel secure in the shade of proper infrastructure, biometric technology has come into the picture. They provide face recognition systems and advanced tools such as iris detection and fingerprint recognition. Such layers of safety will help individuals to protect their financials whilst being able to be part of the FinTech revolution.
Dodge the tension of remembering all your complicated passwords for mobile payments or digital wallets. All you can do is swipe your thumb or scan your iris the next time you want to use your smartphone to pay.
After going through the trends that the segment is bringing alongside, we can analyze the future of the industry. For now, I feel happy to be a part of this segment and would like to experience the changes that it brought along with the change in years. In case you have spotted an opportunity with any of the above-discussed trends, you can be the one to usher in the transition.
About the Author
Virendra Singh Ranawat, Co-founder of MySIPonline, a venture of Cognus Technology has worked in many reputed organizations, such as TATA and Metso Minerals (Finland). After gaining a rich experience of 10 years from these renowned companies, he initiated MySIPonline, which is considered as India’s fastest growing mutual fund investment platform. He is also the co-founder of Wooden Street, an online portal for customized furniture.