Technology has been a driving agent in building a financial ecosystem that is creating a drastic change in terms of innovation through technology. In the emerging world of technology-driven financial assistance, no commercial entity can afford to operate in isolation. Creating a sustainable and inclusive economy demands a collective effort from all stakeholders. The development of an ecosystem that gives individuals the chance to use financial instruments in their ordinary routine and allows banks to effectively utilize the growth of fintech and non-financial firms operating within those remote locations is expected to be a major driver of financial inclusion in India.
Fintech has the potential to increase capital access for both banked and unbanked populations and help in liberalizing financial services. Considering the favorable response of the historical cash-based Indian economy to the fintech opportunity seen in increased acceptance and use of e-commerce and smartphones. Fintech has also led to increased use of mobile banking and payment platforms; this will help in providing services to people who didn’t have an access to banking services and help in financial inclusion which is important for economic growth and for eradicating poverty.
Technology can also be used to improve transparency and accountability in finance. Blockchain technology can help reduce fraud and corruption by creating a secure and transparent ledger of financial transactions. This can improve trust in financial institutions and increase the efficiency of financial systems. As more and more transactions are happening online it’s important to the adoption of eKYC and biometric authentication needs increase, in no time biometrics might negate the facial recognition tool for consumer interaction.
Numerous lending in order to quickly penetrate the market and make the introduction of digital lending products simple, NBFCs are also considering implementing Bank in a Box solutions. Some of these institutions are utilizing the SaaS model, which considerably lowers their capital outlay.
Robo advisers are the next stage in the advancement of asset management and investment planning, particularly pushed by millennials. For wealth management companies that target both mass market and well-known individuals, providing digital assistance has become an important requirement. Thanks to robo-advisors, investment management is now available to a wider spectrum of people, including those with less financial experience or lower incomes.
Technology can be used to promote sustainable business practices, companies can use data analytics to track and reduce their carbon footprint or implement circular economy strategies to reduce waste and promote resource efficiency. Players in the fintech sector in India should aim to utilize the current IT ecosystem to produce some successful examples of sustained development for financial institutions. These use cases may pave the way for Indian fintech companies and IT companies to expand internationally. By leveraging technology to promote sustainable business practices, companies can reduce their environmental impact and contribute to building a more sustainable and inclusive future.