The increase of digital players in the financial space and increased reach and access to digital platforms in the last few years has eased the common man’s struggle to get access to funds. Fintech has emerged as the most effective lending channel, changing the traditional ways of banking and transforming the end-to-end customer journey. It has unlocked various opportunities for tapping the wide substantial database of customers enabling a strong digital foundation.

The entry of new-age lending platforms has catered to the larger segment of people who are in need of funds. Digitalization has helped the consumer achieve financial independence by obtaining quicker access to affordable finance. Fintech platforms allow easy and transparent access to individuals, in achieving financial needs to cater their requirements, simply by sitting at the comfort of their homes or offices. The need to visit branches and standing in long queues has been eliminated.  

India is one of the fastest-growing economies, where FinTech platforms are gradually scaling up to a greater value proposition. And this is made possible through the following:

Redefining customer experience through AI

FinTech Platforms enable consumers to compare financial products and services offered, make an informed choice and then shop, all at the tap of a button. As a result of the spread of technology and easy accessibility to smartphones, FinTech is now at the forefront of the financial services industry. The AI power to transform customer communications and the growing preference for self-service in banking should also be top-of-mind for banking executives as they navigate the evolving digital banking landscape. While some may view AI capabilities as futuristic or out of reach for current generations, they are already making a big splash in the financial services marketplace – with chatbots and predictive analysis.

Chatbots for hyper-personalization

Chatbots, also known as conversational agents are shaping the customer experience, and transforming the back-end operations in an unprecedented manner. Chatbots,equipped with artificial cognition and understanding of the natural human language, interact with humans via audio or textual media to interpret and respond to questions, most of the time without any human intervention. They enable organizations to provide a simplified, personalized, and seamless experience to their customers at efficient and effective service costs. Fraud prevention is a critical factor in any bank’s operational strategy. A chatbot can be programmed to monitor and identify warning signs of fraudulent activities so it can instantaneously notify the affected customer in real time via a messaging app. It also helps to maintain a high brand value among their customers.

Robotics for intelligent automation

Robot-led automation has the potential to transform workplaces as dramatically as the machines transformed the factory floor during the Industrial Revolution. Robotic Process Automation has the potential to make business processes more efficient, in very different ways. Robotic course automation tools are best suitable for process with repeated, predictable interactions with IT applications. These processes typically lack the scale to warrant automation via IT transformation.  Entire end-to-end processes can be performed by software robots with little human interaction.

Adoption of technology for advanced cyber security

To cope with this emerging AI security threat, organizations need to adapt their security strategies to not only accommodate AI and innovation, but also prioritize protection of data. In the digital economy, the main aim of hackers is to exploit data as this is where the money is. Organizations should use data-centric security models underpinned by information assurance to protect data, as well as continue all the innovations surrounding AI, while continuing to adopt a prevent, detect and response strategy.

Technology in banking isrevolutionizing the customer experience by enabling the mobile communicationthat is needed to accomplish routine daily banking tasks, as well as extending thehours of service and the speed of service a financial organization can offer to its customers.MSME’s form the backbone of the Indian economy contributing to India’s employment and it’s GDP. Digital lending has the potential to catapult the IndianMSME’s productivity, offering a meaningful market opportunity for both innovative start-ups as well as traditional lenders.

Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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