India has witnessed a big data revolution with the integration of new-age technology in the financial services space. The global fintech firm is growing and will reach $309.88 billion by the end of 2022.
According to the Boston Consulting Group report, the value of Indian fintech firms by 2025 will be $150-160 billion. Many companies in India have adopted a product-oriented approach, where the quality of products or services offered has been enhanced by syncing it with AI technology.
It has helped the financial segment to find a new source of revenue. There is fraud prevention, optimum resource utilization, automation, and customer retention and acquisition.
There is a demand for personalized financial services. Modern customers want financial institutions to go beyond their traditional modes and be active financial advisors.
Customers are asking financial institutions to share their data- geolocation, social media activity, history, and goals. They also want the bank’s intervention in customers’ financial purchases, saving guidance, discounts with personalized suggestions.
The personalization in services will help the financial companies fulfil customers’ social and monetary needs.
Growing agility across all the demographics is remarkable. But the banks also need to establish market partnerships with the non-financial services outside the company, and only 14-18% of the banks are doing it.
Hyper-personalization with technological advancements and artificial intelligence is effective in attracting and retaining customers.
The regulatory support has also helped to revolutionize the finance sector. The evolution is possible with the data infrastructure development and changing customer profiles. The regulations also need to adapt with the transformation of the finance sector to fintech.
The RBI has introduced innovative products like IDRBT and NPCI. RBI is working hard for the interoperation and participation of non-banking institutions in the fintech segment.
Low-cost and customer-friendly transaction models encourage customer participation. RBI also encourages orderly innovation with effectiveness. The real estate sector remains unautomated, even though there is AI adoption and progress in excel sheets. In the US, big data-backed AI is being used to sell real estate data.
Hopefully, with the launch of 5G networks and software, the segment can enhance customer support.
On the other hand, the retail space epitomizes innovation aided by data analytics in customer segmentation, product suggestion, pricing, forecasting, inventory management, and logistics.
AI is a pioneering development that brings standardization in processes and takes care of minor variations.
Insurance, lending, real estate, and even equity businesses use AI. It is now possible to capture images through drones and access real-time data in e-format. The introduction of payment platforms like UPI, IMPS, eKYC, and crowdfunding platforms is a step in the right direction.
But frauds have also increased with digitalization – private banks have seen a 5000% rise in fraudulent activities in 2020.
The Indian fintech system is still at the initial stage of AI adoption. Blockchain technology will further reduce operating costs and minimize traditional bureaucracy. There is a need to solve cyber security and data privacy issues and address legislative deficits.
Follow and connect with us on Facebook, LinkedIn & Twitter
