Fintech refers to any digital technology that might revolutionize the financial services industry by inspiring the creation of novel financial service models, apps, procedures, and products or improving those already in existence.
The Fintech industry’s meteoric rise is attributed to the increased collaboration between enterprises and the efficiency gains that have resulted from using advanced technology in financial services. The colossal success of Unified Payments Interface (UPI), India’s flagship digital payments platform, is a glaring example quoted across the Globe as to how Fintech-collaboration can make a revolutionary difference in the way people pay. With the new normal imposed by the pandemic and a thriving digital ecosystem, there are endless opportunities for adding further convenience to financial services delivery. In 2023, it is anticipated that robust technologies and innovative solutions in Fintech will continue to drive impactful changes in both the local market and the global financial industry. Here are some of the Fintech trends the ensuing year is likely to see:
Neobanking Trends
As Fintech is evolving, it brings convenient and easily accessible payment methods. NeoBanking does not require you to have a physical bank branch like traditional banking does. It offers through online mode, everything that was once only available in a branch.
This means that customers can access all their financial services from online accounts without worrying about queues in physical banks or remembering pin numbers and passwords. All they need is an internet connection, and they’re good to go! NeoBanking promises unprecedented convenience and helps banks cut costs associated with physical branches, giving them a competitive edge in the digital age.
NeoBanking offers more than banking solutions to sustain the banking business. Globally, the neobanks are gaining more exposure by creating a digital-only version through a tie-up with fintech to increase the customer base. This has also led to enhanced engagement with existing customers by digitally customizing their products according to the customers’ specific needs. India, as compared to many developed countries, has fewer Bank branches to cater to per lakh adult population. This is where NeoBanks can bridge the gap between customers and traditional banks.
Evolution Of The Super Apps in BFSI
User experience and connectivity are the bedrock of a Super app structure. These apps focus on facilitating quick and simple usage of all functionalities. Who will not like to have all the financial services in one single app? Super apps are expected to revolutionize how banking is seen worldwide. Moving away from traditional methods, consumers would move towards these types of apps for a better, faster, and easier experience for managing their finances.
Further, the rise in Open Banking around the world would help super apps aggregate data from various banking channels to better serve their users by catering to their specific financial needs. Super apps are expected to expand rapidly, and many Indians will soon use them in 2023.
Digital Rupee Innovation
India has taken another big step towards digital transformation by launching its first pilot of the digital rupee in November 2022. The evolution of the digital rupee is set to change the future of financial transactions and will transform the very fabric of commerce.
For one, the digital rupee is more than just a digital currency. It’s an entire ecosystem designed to make financial transactions more convenient and accessible for everyone. This means you don’t need a bank account or credit card to use it–you can conduct transactions using your smartphone or computer.
As digital tokens allow for faster disbursements and guarantee the safety of digital payments and online cash transfers, the Fintech industry has plenty to look forward to. Companies in the financial services industry need to be well-prepared for work around the use cases of the digital rupee because of the expected effect on client value offerings.
On-the-Go Security & Fraud Control for FinTech Mobile Apps
Keeping everything in mind, we come to the last and the most important trend to look out for in 2023. Mobile-based digital payments have become a norm rather than an exception in India. As people become used to convenience, the digital advantage cannot be allowed to become a liability due to security & fraud incidences. FinTech may work in collaboration with cyber security experts to embed mobile apps with a security framework to safeguard customer data & prevent fraud.
Mobile App Runtime Application Self-Protection ( RASP), is an effective way to protect Fintech mobile apps because it enables app, device & network security layers on Apps and also protects and blocks malware threats.
With emerging innovations in the DigiFinancial ecosystem, Fintech is expected to fuel the next financial revolution in 2023.
(The author is Mr Manish Mimani, Founder & CEO, Protectt.ai, and the views expressed in this article are his own)
