The pandemic has further amplified this creating an upsurge in digital transactions. India’s digital payments volume soared to a staggering 25 billion transactions in the year 2020, making India the world leader in digital payments. The rate of technology advancements has changed the very nature of work and led to emergence of new business models.
Changing Scene in India
The Indian economy has been on an exciting digital transformation journey facilitated by the India Stack — the application program interface incorporating the JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile).
With the pandemic, as people fretted over safety and social-distancing, they sought a touchless experience for transactions extending to daily needs. Facilitated by the India Stack, online transactions have seen an uptick especially with the small businesses even in the rural corners of India. Now, transactions as low as Rs. 10 can be made thanks to the permeation of mobile phones, UPI, Digital wallets, QR Codes, and other low-cost digital payment services.
Online transactions once characterized by High Value – Low Volume has now evolved into Low Value – High Volume transactions. According to National Payments Corporation of India (NPCI), which manages UPI, the volume and value of UPI transactions has grown three-folds in the fiscal year 2020-21, growing from 999.6 million transactions with a value of Rs. 1.5 lakh crore in April 2020 to 2732 million transactions with a value of Rs. 5.04 lakh crore in March 2021.
Emergence of New Businesses and Services
With the changing scene and focus on faultless customer experience, small and large businesses alike have been leveraging technology for re-imagining their businesses and introducing new use cases and services. FinTech’s are introducing newer offerings such as micro-lending, short-term insurance etc, aided by Government initiatives like Aadhaar-based payment, eKYC, DigiLocker etc. Start-Ups and Enterprises are investing in deep technologies to drive newer channels of customer engagement and service offerings.
Role of IT for seamless business operations
The rising transaction volumes which have been straining enterprise IT and the bulky nature of UPI Apps, has increased transaction failures caused by business and technical declines and system outages. Additionally, security risks due to data leaks and fraudulent transactions have become rampant.
Such tectonic shifts and scale have challenged IT Operations team of enterprises especially Banks, Payment Gateways and FinTech’s making them reimagine themselves. They are adopting more technological advancements in not only providing superior application experience but also introducing AI/ML and automation to sift through mountains of data to be fault resistant, fault tolerant and more importantly, integrating business and operations systems.
At the crux of this are investments in a robust, resilient infrastructure to support at scale, a modular application architecture driven by API related services, modern unified visibility and analytics solutions that monitors and delivers insights and automation replacing traditional workflows. The unified view is also simplifying the necessary audits, compliances and dispute resolutions in case of failures.
Secondly, IT Operations are adopting data and AI centric platforms to support massive streaming and create offline data lakes to replace traditional warehouses. They are accelerating their journey towards AI/ML driven operations by contextualizing AI/ML models to their environment, to generate actionable insights to identify customer churn, fraud and degradations in customer experience.
Another key dimension is the improved collaboration across Operations, Business and Support teams.
Future of IT
While the enterprise and associated IT Operations are leapfrogging into the modern digital world, what will be relevant is being driven by business outcomes.
Ashwin Ramachandran, CEO, VuNet Systems said, with our business journey monitoring platform, vuSmartMapsTM, monitoring over 3 billion transactions a month, we are helping enterprises transition from traditional IT monitoring to business outcomes driven IT operations to realize enhanced customer experience and higher operational efficiencies at reduced operational cost.
The author of this article is Ashwin Ramachandran, CEO, VuNet Systems
The views and opinions expressed are not of IIFL Securities, indiainfoline.com