The Next Step of Evolution in Fintech
The various frontiers fintech is pushing today !
Fintech companies are continually pushing the boundaries in payments, lending and personal finance space. This has attracted a lot of investor interest in fintech in recent times. Various new startups are working towards coming up with new and effective ways of transacting.
Recently in its report, KPMG identified 7 major areas of interest in fintech financial sector.
- Next-generation payments– Fintechs in this area are working towards disrupting the way we have transacted till now. Soon the traditional credit cards will give way to newer, more secure ways of payments. Contactless RFID credit cards use passive Radio Frequency Identification enabling customers to pay with just waving their credit cards in front of the RF terminals. Then there is bitcoin, which would be the currency of the future. snapCard, a U.S.-based startup, provides eWallet service for your bitcoins.
- P2P lending– Also known as Peer-to-Peer lending, many startups are now exploring and offering such services. It is a simplified online platform for lending money to individuals or businesses. These platforms match lenders directly with creditworthy borrowers who are looking for funds. One such startup in this space is Delhi-based Lendbox that is working towards making lending and borrowing easier and more transparent. At the same time, such services prove lucrative to the lenders as well.
- Bank in a box (BiaB)-It is a banking solution aimed at assisting non-banking financial companies with tech support for traditional retailing, call centers, mobile banking and such. Such services can be very useful to non-banking companies planning on accepting deposits. Major IT players like TCS and Infosys are already providing this service to big companies.
- Financial inclusion– It is the delivery of financial services to those who cannot get access to them due to low income. Government schemes of Aadhar enrolment and Jan Dhan Yojna aim at reaching such segment of the population. Fintech startups are working towards financial inclusion by increasing financial literacy, introducing easy to use tech that is non-predatory and safe to use. Smartphones have already done a lot to empower such population with mobile eWallets and banking apps. Some examples of such startups are Freecharge, MobiKwik, and BankBazaar.com (where one can buy policies and loans easily).
- Blockchain– Since the coming of bitcoin, the technology has grown in various ways. We told you about this new technology called Blockchain in our previous article, CM Chandrababu Naidu Building A High Tech State. Many big names in the IT consultancy sector are now focusing on investing in blockchain technology. These companies include Cognizant Technology and Infosys Ltd. The researchfor more possible applications of this technology is still underway. But it is believed that blockchain will be a game-changer soon.
- Roboadvisory– With everything becoming automated, even fintech startups are now bringing in automated robos to give investment advice to clients. Some Indian startups too have raised venture funds in this space. These include Scripbox, Tauro, Wealthy.in and Goalwise. The robo-advisory technology uses AI and specific algorithms to access, analyze and return investment related advice to users.
- Security and biometrics– Already the market is full of smartphones with biometric locks such as thumb-impression and retina scanner. With respect to the retail market, biometrics can solve the traditional problems concerning password and PIN authentication. This will speed up the entire process. SayPay is a startup in this space that offers voice recognition platform to banks and e-commerce merchants to authenticate payment. BehavioSec goes more in depth with analyzing a user’s interaction with his device- key pressure, style of typing, swipe speed, typing speed and finger positioning. All these startups are bulling a more robust, hack-proof payment mechanism.
Seeing such development, people are even saying that the next Uber of startups is going to come from the fintech sector.
Do you think such tech advancements are going to make fintech more secure and robust, or does it plainly leaves the industry more prone to cyber attacks? Do share your thoughts in our comment section below.
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