Nishant Arora began working in finance even before graduating with a bachelor’s degree in commerce from the University of Delhi in 2016. He started his career as an Articled Trainee in an accounting firm in 2013 and was later promoted to Senior Associate, where he remained until 2017. He worked on Statutory Audits of leading companies in the housing and real estate, consumer goods manufacturing, engineering, heavy equipment manufacture, textile, automobile, hotel, entertainment, and banking industries throughout his time with the accounting company.
India’s fintech market is the fastest growing in the world, with 67 per cent of the more than 2,100 fintech firms in existence having been established in the last five years. The fintech market in India is already worth US$31 billion and is expected to grow to US$84 billion by 2025. The rise might be ascribed to these fintech organisations’ digital adoption to make life easier for their customers.
Following COVID-19, the average time spent on a smartphone by an Indian user increased by 39%. According to App Annie, India ranked third (4.6 hours per day) on the global list of average time spent on smartphones by ordinary users, with Indonesia (5.2 hours per day) and Brazil (4.8 hours per day) holding the top two spots. In today’s homes, there is a proliferation of mobile and smart devices that are continually linked, storing and passing data back and forth. Users readily give a lot of data, which helps Fintech companies to build more tailored services for their consumers.
You no longer need to visit physical sites or wait days for transactions to be completed. Fintechs have developed cross-border financial services that enable real-time data sharing. Fintechs have forced established players to adjust by allowing for more tailored options in financial services. Fintech organisations can be more nimble and adjust fast to changing market conditions because they are founded on current technological platforms.
Finance is undergoing a significant change. Payments, loans, insurance, and wealth management are all being reshaped by digital technologies, a process that has been expedited by the COVID-19 pandemic. While technology makes financial services more diversified, competitive, efficient, and inclusive in many economies, it may also increase market concentration.
Data is being used by fintech companies to better serve customers. Algorithms, Artificial Intelligence (AI), and Machine Learning (ML) can process the massive amounts of data generated each day and turn it into useful information. The information given can be utilised to anticipate and predict client behaviour. Customers can be informed about potential items, cross-sells, and strategic planning as a result of this.
The more information fintech companies have on their customers, the better they will be able to service them. Segmenting potential consumers can assist target marketing and services in addition to analysing credit scores and other hard credit characteristics. Clients can be segmented into several categories, which can provide information about which products best fulfil their needs. Segmentation can also help identify the high-value customers who are most likely to buy financial products.
The fintech business is rapidly changing. All financial institutions’ customer experiences and expectations have changed as a result. Customer experience has evolved into a differentiator and a primary driver of customer expectations. Fintech has been able to get customers away from traditional financial institutions as a result of this.
On one side, digital technology allows niche providers to address a certain customer base while being financially viable. Customer acquisition, funding, “assembly,” and switching expenses, on the other hand, tend to favour larger digital financial services providers. Fintech Startups are breaking the stereotypes and becoming a bridge to shift the entire economy towards paperless practices. Future belongs to easy and user-friendly online applications, accounts, CRM, support centres, etc.
Even the banking sector has started moving towards an all-online process. It’s always easier to be a user of such services online where all the info can be accessed at fingertips. The government has started allowing API access to the majority of its portals like GST, Digi locker, etc which makes it easier for Fintech firms to connect with the consumers seamlessly and provide solutions and services like never before.
Fintech firms, with the help greater than ever, reach of technology till commoners have transformed sectors like insurance, retail, investment advisory, etc. Nonetheless, there is still an infinite scope of the turnaround in sectors like consulting, financial planning, wherein online competition has still not moved the industry.