Driving Technology-Led Growth In The Financial Sector
India, today, serves as a bright spot in the global financial landscape. This is despite looming apprehension amongst leading economies across the globe. India is rapidly consolidating its financial eco-system and has even been able to successfully perform and sustain bold moves such as demonetisation, something which initially received massive negative reactions from leading economists. To understand this audacious stance of the country, one has to analyse how the nation’s economic infrastructure is evolving. This boils down to a single conclusion – rapid technological adoption. The nation is implementing technology across fields that have long remained bereft of innovation. This, as a result, is giving a fillip to their growth while also paving the way for a unified market within the country.
Let us analyse how India can further increase the penetration of technology within the financial sector and offer the nation what it has long strived for, a double digit growth rate.
Despite recent advancements, there are multiple issues that still affect the country’s financial sector. Finance, with its inherent complexity, is largely governed by the conventional methods of operations. This not only diminishes the business opportunity with procedural limitations and delays, but also creates excessive financial burden on the state as well as business enterprises. Technology, to the contrary, offers seamless, cost-effective, and time-efficient solutions to its stakeholders. These characteristic features of technology are highly desired to create a robust financial landscape within the country.
Data collection, analysis, and security has also remained one of the primary pain points in the financial sector. Considering the sheer size of the country, even smaller market verticals cater to relatively large customer bases. This makes data management an intricate process requiring significant detailing. Compliance with norms and statutory obligations can further affect and impede individual processes and can also make them more financially demanding. However, these issues are also being actively addressed with new technologies.
Data science and Big Data analysis offer insights with highly precise and relatively faster market modelling and demand forecasting. Data storage, security, and retrieval is also becoming much easier and flexible with the deployment of cloud-based and third-party solutions. With the right use of technology, businesses can even perform some of the most challenging tasks such as sentiment analysis and devise real-time customer-centric solutions with great proficiency. In fact, a few new and emerging businesses are now aiming to predict stock movement through Artificial Intelligence as well as other advanced technological aids. Developments such as these have the potential to entirely alter the dynamics of the financial sector.
The ongoing digital adoption within the country has extended financial services to businesses and customers at the touch of a button. Credit origination, once a time-consuming and gripped with red-tapism, has made huge headways in this context. Apart from entirely digital processes with minimal paperwork, such platforms come up with very accurate credit profiling even in the absence of a credit history of the customer. Also, the credit is facilitated to the beneficiary within days of loan application. Considering the gap in the credit industry, banks can tap the technological expertise that some of the leading players possess, at least to digitally underwrite their customers.
Nevertheless, technological implementations cannot be made to the financial sector without providing it appropriate security. Financial services, given their nature, are most lucrative for cybercriminals. This is one of the key reasons why the sector has traditionally failed to attract mass adoption of technology despite its advantages. The increased participation of multiple platforms and cybersecurity firms, however, has led to the development of evolved business-centric cybersecurity solutions. Such platforms secure the network perimeter of an organisation and provide round the clock security with real-time time intrusion detection. They also have the ability to counter some of the highly sophisticated exploits given their extensive information repository. This has paved the way for a more secure digital landscape which financial entities can benefit from.
Considering its massive upsides, the financial sector and its processes can be greatly enhanced, or rather truly redefined, by leveraging technology. All it requires is increased participation of various stakeholders and deployment of state-of-the-art technologies, especially within the banking sector. With that done, the dream of the double digit growth rate can surely become a reality in the near future.
[Disclaimer: The views expressed in this article are solely those of the authors and do not necessarily represent or reflect the views of Trivone Media Network's or that of CXOToday's.]
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