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Technologies Helpful In Fintech Growth
India's fintech industry is developing with various technologies that are reliable and trustworthy
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India is among the quickest developing Fintech markets on the plane with 6,636 Fintech new companies.
Indian Fintech industry's market size is USD 50 billion in 2021 and is assessed at ~USD 150 billion by 2025. The Fintech exchange esteem size is set to develop from USD 66 billion in 2019 to USD 138 billion in 2023, at a CAGR of 20 per cent.
The Indian Fintech industry ecosystem sees an extensive variety of subsegments, including Payments, Lending, Wealth Technology (WealthTech), Personal Finance Management, Insurance Technology (InsurTech), Regulation Technology (RegTech), and so forth.
Kunal Jhunjhunwala, Managing Director and Principal Founder, airpay said, "When the COVID-19 pandemic struck the world, only a handful of industries showed an upward trend, and the Fintech industry was one of the few that fared well relative to other sectors during this period. 2022 is a year of remarkable adaptation and transformation, whereas 2021 was a year of unprecedented disruption."
"As we have witnessed, the essential technologies and trends are increasingly integrating, delivering massive impetus to fintech and financial industry innovation. Fintech solutions and apps have gained robust backing during the pandemic. Given that the Fintech industry continues to make finance simple, quick, convenient, and secure for customers – individuals and businesses - by utilising the most advanced and cutting-edge technologies, it seems certain that this support will continue to grow in the future", he added.
The Fintech area in India has seen a subsidising of USD 8.53 billion (in 278 arrangements) in FY22.
As of May 2022, India's Unified Payments Interface (UPI) has seen the cooperation of 323 banks and has recorded 5.9 billion month-to-month exchanges worth more than USD 130 Bn. As of June 2022, India has 23 Fintech organisations, which have acquired 'Unicorn Status' with a valuation of more than USD 1 billion.
Key Technologies Diving Fintech Growth:
For fintech organisations to impart and communicate secure and unmodified information over a decentralised organisation, blockchain assists with overseeing information breaking and other deceitful exercises. It assists with guarding information in any event, when encoded, and makes it more straightforward to screen, comprehend, and review AI decisions, permitting people to trust machine-driven knowledge.
The stock market's suspicious practices, like stock control, handling deferrals and charges, and the commissions of middlemen might be removed with the utilisation of blockchain innovation. When blockchain technology is utilised in fintech applications, cash might be transferred right away, regardless of the amount.
Jhunjhunwala said, "Authentic Information is key for any business and the more accurate and faster it is received, the better for the company. Blockchain or digital ledger technology is a structure that helps to store transaction records of businesses in databases, known as the chain in a network connected through peer-to-peer nodes. A blockchain network can track data like agreements, payments, orders, accounts, production, and many more assets. Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved. The best part of this technology is that it can be accessed, authenticated and modified only by network members who have permission."
As of now, artificial intelligence (AI) technology is assuming a pivotal part. It is helping fintech organisations automate routine systems and further develop results on a scale past human intelligence. The early use of artificial intelligence empowers fintech organisations to distinguish dangers, forestall misrepresentation, automate regular undertakings and improve the nature of administration. This large number leads to further developed productivity and higher benefits.
"AI is one of the key technologies that most companies are relying on for understanding consumer behaviour. It is also the most discussed and mentioned in recent times. AI helps us to recognise and detect patterns, anticipate, and forecast future events, create rules to optimise outcomes, make good decisions by applying rules, and communicate with other people through digital or similar mediums. Machine Learning (ML), one of the key AI components, is widely used in banking in the areas like - risk management, fund development prediction, fraud prevention, and customer service, among others", said Jhunjhunwala.
Kunal Jhunjhunwala says, "Internet of Things (IoT), meanwhile, increases the speed of financial processes, both internally (management and team organisation) and externally (client management and communication). With an IoT network, it’s possible to connect traditional monitoring and measurement tools to financial databases and send data directly from one device to another. These days manufacturing and smart cities have made the biggest progress in Fintech IoT."
IoT has given the fintech business an intriguing lift, particularly with regards to security and instalment handling. The Internet-of-Things can be tracked down going about as portable retail location frameworks, as well as network protection apparatuses that securely cycle and scramble instalment data.
The technology of Biometric has undoubted benefits for the smooth running of the Fintech business, for the representatives and the clients. It increments consumer loyalty and works with the client relationship because of a remarkable client experience. Biometrics improves worker undertakings and works on the security of remote and office activities.
"Fintech companies are solving the problems associated with the authentication and verification of consumers, through biometric technology solutions. Biometric technologies include fingerprint, voiceprint, face, iris, and speech recognition. Financial-grade biometric technology will significantly change existing processes for remittances, transfers, operations involving large sums, withdrawals, and corporate banking. Biometric technology involves identifying patterns that are unique to each person, such as the face, the voice, and the fingerprint among others, and using them to verify users of services of all kinds. As these patterns cannot be imitated, they are ideal for protecting sensitive operations such as remote financial transactions", said Kunal.
The biometric technology also forestalls violations, for example, data fraud and illegal tax avoidance. Also, it lessens paper wastage by keeping documentary proof carefully.
"Cloud computing has brought numerous advantages to the financial sector across several areas like – service, security, innovation, and scalability. It is mainly important in financial services as Fintech start-ups and established financial organisations are competing to provide customers and end-users with more speed, and reliability and offer scalable round-the-clock service in their digital products and services. Cloud computing cost-effectively enables all of this while also providing additional security in an age where regulatory compliance is becoming increasingly stringent", said Kunal.
A part of the significant advantages of taking on cloud computing into the fintech business is expanding adaptability, better security, driven development, and an ascent in versatility. These advantages are presently forming basic patterns that are driving development in the fintech industry.