India has embarked a new era - The Era of Rising Fintech
S Mohini Ratna, Editor, VARINDIA
Digital transformation (DT) is driving the life better for both employees and IT, opening doors for new ways to work and providing more options for infrastructure and service delivery. DT is ranging from important success factors, overcoming challenges, and more. It is increased value and reducing time.
Digital businesses are giving employees the tools to be more connected, engaged, and mobile. Driving digital transformation in a company is not easy. Many business leaders are looking to transform their business processes and achieve tangible business outcomes. To do this, they need to collaborate closely with IT leaders to develop the environment, resources, and technology solutions required for digital business.
Across industries, we saw a rapid evolution and implementation of artificial intelligence-driven technologies, automation of processes and widespread migration of data and assets to the cloud. 2020 will mark the beginning of a new era for technology as innovation and disruption flourish. The Indian fintech software market alone is to double itself and reach USD 2.4 billion by 2020.
India being a developing country encourages innovation. The banking industry is in a digital arms race. Banks around the world are already realizing how investments in digital technologies could benefit customer acquisition and satisfaction. Online and mobile have become important and the Indian digital payments industry is estimated to touch $500 billion by 2020, contributing 15 per cent to the country’s GDP.
Secondly, Banking and securities organisations are investing in emerging digital technologies such as artificial intelligence and blockchain to create new product offerings and also to respond to evolving customer demands. India’s banking and securities sector is expected to continue to invest in digital business, with spends estimated to grow 9.1% to $11 billion in 2020 as per Gartner.
New technology in banking is already altering the financial sector, and the traditional banking landscape is set to rapidly change in the foreseeable future. Mobile banking has become a go-to process for users to make deposits, account transfers, and monitor their expenditure and earnings. Lately, the banking sector has become an active adapter of artificial intelligence and has explored and implemented this technology in new ways.
The payments industry will continue to be one of the most dynamic areas of innovation in the banking industry. Impacted by changing consumer expectations and driven by technological developments, innovation will continue to come from traditional financial institutions, fintech firms and big tech players. Data-led AI, machine learning, and customer analytics will become the driver of client engagement in the coming years.
As per the survey, out of the total technology investments being made in the Indian banking sector, 23% are for digitalization of internal services. This investment is expected to grow 9% over the next two years. The fundamental applications in AI include bring smarter chat-bots for customer service, personalising services for individuals, and even placing an AI robot for self-services at banks. Beyond these basic applications, banks can implement the technology for bringing in more efficiency to their back-office and even reduce fraud and security risks.
Transformation makes a difference by improving lives, improving society, improving experience. Digitally maturing companies are increasingly participating in ecosystems to drive innovation. There is no deny in the fact that, delivering delightful customer experiences is key to winning and retaining business, strengthening loyalty, and maintaining credible sustained differentiation and the right strategy into digital transformation will provide increased efficiency and expanded scope of opportunity,
India has disruptive potential in the finance sector, resulting in a record-breaking number of digital transactions as merchants and consumers both embrace the ease of digital payments. We will also see an increase in the mobile payment volume in 2020. It is projected that digital payments in India will supersede cash by 2022.
With the present crisis of Covid-19 outbreak which is described as Pandemic, Businesses are in an unprecedented situation, while the neighbours as Singapore, Italy and South Korea are grappling with the virus outbreak, can India convert this into an opportunity and move toward a relocation of production away from China? Can we replace China as the next global manufacturing hub? A right set of policies and near-term supply chain diversification would perhaps be the two necessary conditions to achieve this. Many are thinking seriously to make India an attractive investment destination in the wake of the recent turmoil in the global financial markets.
Uncertainty breeds fear, and fear breeds panic, but it is the bold one emerges as the winner!!