2020 –The year of FinTech; and here's what moved it

What's next? Decimal Technologies and Infrasoft Technologies tell us what they're expecting.

Dec 30, 2020 09:12 IST India Infoline News Service

If anyone rose to the occassion in 2020, it was the FinTech sector. While other sectors struggled to adjust to the new world that the Covid-19 pandemic has forced upon the economy, FinTech managed to pull through and facilitate services to its users.

What's next? Players from the industry tell us:

Rajesh Mirjankar, Managing Director & CEO of Infrasoft Technologies said this about Fintechs and banking services, "2020 was the year which saw the fintech companies in India rise to the occasion and facilitate uninterrupted banking services to the consumers. The Digital India initiative by the government and RBI had already set the course of digitization & evolution of our banking and payments industry. The bankers are our silent heroes and corona warriors who guaranteed that banking services are accessible to the public even during the lockdown.

We must acknowledge the hard work put in by bankers, who staffed the counters at the banks, the data centers and various business units to ensure that banking services are not hampered.

The pandemic was a crisis that created new opportunities for fintechs and as a fintech enabler we demonstrated innovation intent in our engagement with banks by digitizing their processes and convenience for their customers with omnichannel and open banking solutions. We also enhanced the security of our payment solutions and released new offerings that could reduce fraud scenarios and enhance compliance."

On the role of RBI, Rajesh said, "The RBI has rightly looked to bring all banking services providers under a regulated environment. This will help increase focus on customer services and help banks raise capital since investors will prefer tighter regulations that assure their investments and customer funds are protected. Furthermore as proposed by the RBI, a full-fledged division for the fintech players will put the required focus on the industry and further strengthen its core, while also boosting the pace of growth of the Indian economy."

Talking about going-Digital he added, "The banking industry has responded very positively and quickly to Go-digital initiatives. The quick response from the banks has enabled the deployment of schemes like direct benefit transfers in the initial times and the adoption of UPI and interoperability of the wallets with the payment solutions. Due to the well thought Go-digital initiative, banks could support the economy in a much better manner, as they were already well equipped to handle the growing demands of digital payments and e-retailers.

Banks are rapidly transforming their processes with the Go-digital initiative and have invested towards growing their customer base with e-customer onboarding and video KYC. The customers have also seamlessly adopted digital banking behavior. The idea of digital for customers is now evolving from card-based transactions on ATM’s and POS machines to P2P payments using wallets and UPI. We will soon see Banks adopting Artificial Intelligence to render intuitive customer experience based on historic data and forecasted needs."

Lalit Mehta, Co-Founder CEO of Decimal Technologies said, "The COVID-19 pandemic definitely accelerated the digitization of the banking sector. This year Digital has been established as a mainstay and primary way of business for all small and big banks. While this year has caused much pain and grief but for banking it has accelerated the growth on the path of ways of banking. 2021 will witness Hybrid Banking become more mainstream. In a hybrid banking model, financial institutions combine the brick and mortar physical banking approach with virtual banking. The banks should be using the technology and digital for creating Integrated Banking with a Human Touch.

While the regulations like Video Banking and widespread adoption of digital opens ways of expansion, banks will have to strive for retention of customers and convert this expansion and growth to bottom line. Banks need to move in the direction where banking moves into the lives of people and not the other way that people have to come to the banks for transactions. Banking needs to integrate and become part of what people do in everyday life and there needs to be a bond between the customer and the bank and that will come from human touch which needs to be embedded in digital.

Financial services will see many specialized players integrating to create world class banking services. Banks will partner with hi-tech specialized players for both backward and forward integration. Backward integration players will help create best possible products and forward integration players will create best possible experiences for the customers. This should lead to inclusive growth that is sustainable and comes with Human Touch. Blockchain and Artificial Intelligence that have been in the discourse for years will play a major role in creating new age banking and will see rapid adoption for implementation for various use cases.

2020 has been a year that nobody expected. It forced businesses to learn and evolve. 2021 is the time to implement those learnings. Undoubtedly, it is going to be a path-breaking year, one we hope will set new milestones for the banking ecosystem."

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