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HomeResourceFintech Are Transforming Banking In India - Know Here How

Fintech Are Transforming Banking In India – Know Here How

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The banking industry has changed aggressively to digital from physical and now it is operating on a hybrid model. All thanks to the rising fintech companies and technological advancement that are using digital tools efficiently to transform the manner we bank today. The use of Aadhaar cards and video KYC alongside cardless cash withdrawals, tap & pay and paperless customer onboarding via mobile is a few of the technology’s first instruments that reflect a considerable acceleration in the digitization of banking. Yes, you heard it right. Now you do not require visiting your banks as per their timings. For instance, if you have a Kotak bank account and an IDBI bank account, then you do not require visiting as per Kotak bank timings and IDBI bank timings, respectively, to perform your banking transactions. You can simply access their net banking portal or download their mobile banking apps to perform your banking activities with ease.

Related Post: What Does The Future Of Fintech Look Like?

Let’s have a look at the 5 fastest growing ways where fintech has incorporated higher agility into the banking sector and provided a versatile digital outlook.

Advanced self-service potential

Long gone are days when customers were required to wait for hours in long queues to finish formalities, fill out forms and access customer service for banking-linked assistance. With fintech solutions, their self-service potentials offer customers operational procedures that were previously just available through a physical branch. Such services are not just restricted to the basics like checking the account balances online or transferring funds but even others like customers now can open new accounts, go for loans, and purchase policies – all, digitally. This helps customers to know their financial position, know about various available alternatives and make informed financial decisions about themselves and their families.

APIs or application programming interfaces

A decade back, the RBI or Reserve Bank of India came up with the RTGS, and NEFT services, followed by the NPCI or national payments corporation of India introducing the IMPS service. This was led by API-led banking. Read on to know how this helps –

APIs or application programming interfaces Fintech

1. For financial institutions to conduct functions seamlessly and digitally, it is important to integrate their services and products with the 3rd parties.

2. To link both parties, they require APIs to communicate with others.

3. An API is a bridge that assists banks and the 3rd parties to connect effectively and safely and leverage other offerings and services in real-time.

4. A prudent instance would be the transfer request of money sent by mobile wallets and received by the banks during transactions, hence offering a faster and low-effort experience to the target audience.

5. Applying for different loans, checking the credit score, and profiles, and viewing the balances all can be done in a single place. All of it is possible owing to the APIs.

6. They permit banks & 3rd party companies to use their strength as well as complement one other to offer good features and services to customers in a manner than when they were done individually.

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Instant payments

While most still preferred payment through cash in the past decade, the POS (point of sale) terminals started to view acceptance around 2016. Rapid penetration of mobile net banking services and demonetization played an important role in increasing the acceptance of digital payments in India. The government has since then been offering individuals incentives for selecting online methods of payments in hope of making our country cash-light. The KYC bottlenecks were simply tackled by fintech as they innovated new technologies at a faster pace making the identification verification process simple. Now, it takes just a few seconds for the payee and payer to receive and send funds, changing the manner people shop and spend, and enhancing accountability.

Voice bots

Till now, we have viewed banks launched their chatbots on their site to communicate with customers in a meaningful manner and address their constant queries. With the advancement in technology, voice bots are most likely to replace chatbots in days to come. Such voice assistants are aimed at allowing consumers to communicate with them utilizing voice identification technology backed by AI (artificial intelligence) and language processing.

Just imagine a case, where you require generating a new password or opening a new bank account and may not be able to type. Here, you can use direct voice commands. So, now you do not require visiting the bank physically or not even require typing on the website online. Just through your voice, you can get most of your work done. For instance, considering you have an account with Kotak bank, now you do not require visiting the bank as per Kotak bank timings for most of your chores. You can get your banking work done by visiting the Kotak bank website and using your voice commands to get the work done. However, note that, for voice recognition, your biometric authentication will be done before. Alongside voice recognition, face and iris recognition too will be done.

Also Read: Why Every Business Needs to Incorporate Enterprise Risk Management

Neo banking

Neo banks are those digital financial institutions with zero physical branches. They provide a wide range of financial and banking services like instant credit options, saving accounts, mutual funds, lending products, fixed deposits, and others, which can be accessed easily through the online mode, either via the site or dedicated app in association with the licensed banks. Note that this kind of trend picked up during the COVID-19 pandemic among consumers who were looking for digital banking ways.

Get the world at your tips

Many of you will easily be able to relate, as, in a way, all of us are impacted by technology. Ranging from shopping for clothes to ordering food, all are just a tap away. Also, now you do not require carrying cash with you. You can make all the payments digitally through e-wallets. Likewise, via net banking, you are permitted to transfer funds from your account to another, check your balance, place an order for chequebooks, create recurring deposits and fixed deposits and much more.

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