Financial technology is becoming more popular as the new generation becomes more accustomed to technology. Fintech companies arrived as the drivers to cater for the service to the people of India while contributing to the rise of the economy by generating over $800 billion through payment transactions every year. Fintech through its journey focused on the convenience of customers with the help of technological advancement in financial solutions.
Companies are gaining attention for their efficient technical assistance in the banking space rather than being a replacement for traditional banking. India has now the third highest number of fintech companies at 7,460, behind US and China. This does not hinder the working of traditional banking rather it functions hand in hand with banking services to make it more effortless for people.
Services by Fintechs
India’s fintech sector grew by 20% outgrowing the growth percentile of the US, the UK and China. Over its course of growth financial technology improved the automation of investments, trading, banking services, insurance, and risk management.
Digital banking
The most common aid of technology in finance is reducing hard physical work for bank services. Customers benefit by making and executing banking choices easily with the help of smartphones and the internet. The companies provide extra facilities to consumers through cost savings from the reduced cost of manpower, papers, and real estate required for physical banking.
Digital wallets
Digital wallets arrived in the digital world in the form of virtual money savings. The wallets must be preloaded in order to be used both online and offline. Several businesses and merchants use these wallets for selling their products.
Extra applications
Fintechs are providing a helping hand in online transactions while giving access to free products such as expense management applications and managing the expense to be spent on further investments. Budgeting applications assist consumers in saving from their accounts by tracking their expenditures and managing their income.
Payment gateways
These are the platforms that enable users to pay for the products and services on the merchant’s site. Fintech companies merge various payment methods such as debit, credit cards, and digital wallets into one application for merchants’ affordability as well as for shoppers’ accessibility.
Digital Insurance
Financial technology operating in the field of insurance created an online platform for health and life insurance services. These companies offer more affordable choices to customers that can be operated from anywhere.
Peer-to-peer lending and loans
P2P (individual to individual) and P2B (individual to business) lending has become easier with the innovative technological help given by fintech companies that creates a platform to match the borrower's requirements with the lender's profile and serve to both the users in a secure manner.
Previously in the month of June 2022 RBI barred these businesses from providing credit lines, but later in August 2022 RBI released a press that demands immediate implementation of a few key aspects in terms of loans such as,
- Fund flow must be direct between lenders and borrowers’ accounts without any third-party interference.
- Borrowers can only have fully KYC-compliant PPI accounts and no bank accounts.
- NBFC’s (Non-Banking Financial Company) and banks have to acquire borrowers’ all economic profiles before extending any loans through apps.
- No extension or activation of a credit card is allowed to the card issuer without the consent of the customer.
Benefits of fintech for businesses
Easily obtain funding for business with quick access to required loans from a suitable lender with the help of fintech applications.
Eliminate mediators, automate every financial need, and boost financial efficiency by converting traditional financial processes faster which leads to quicker funds disbursement and management.
Create a work environment with faster cash flow of the business funds, especially for small businesses where the capital is limited and needs to be managed accordingly.
Fintechs’ core function is based on better customer experience which leads merchants and businesses to lure customers towards their products by empowering customers with AI, delivering personalization, creating feedback loops, and providing analytics and graphs.
Distribute personalized products for better customer acceptance and bestow employees with many products and services designed for their suitability.
Conclusion
Unlike traditional banking, fintech companies pivot on innovations that carry costumer’s interests and offer products and services according to consumers’ convenience. Companies such as BankIT make life easier by carrying financial services directly to the hands of consumers through various products like physical and virtual cards, applications, and websites.
BankIT’s services
Find faster and easier financial assistance with the BankIT application and website.
Transfer cash to any NEFT/IMPS bank account with DMT service (Domestic money transfer) with the help of BankIT’s agents.
Use BankIT’s vast variety of physical or virtual prepaid cards for various purchases from any online and offline stores with the help of the application and website.
With the help of BBPS (Bharat Bill Payment System), pay all kinds of bills online. Streamline bill payments by converting from cash or checks to online payments.
BankIT gives AEPS (Aadhaar-enabled payment system), UPI access, DMT, BBPS, and prepaid cards to help you digitalize the payment methods.
A BYOCP (Build Your Own Card Program) service is given to help businesses design their cards and personalize the data according to the company’s requirements and policies.
A 24*7 customer service to prevent fraud and thefts is given to the customers.
