India is currently going through an internet and technological revolution. More people are on YouTube and other social media platforms than ever before. People have started to prefer internet and mobile banking over manual cash transactions and the footfall in the traditional Banking and Financial Services Institutions (BFSIs) is lowering steadily. The institutions are also trying their best to make their services online, and decrease the response and request processing time.
Today, customers want everything promptly and they every right to expect the same. Such a behavior has given birth to a new sect in the industry, Fintech, which is rapidly transforming the environment and culture around.
Here’s how Fintech is bringing a positive change to the Indian BFSI landscape.
Every time you visit a financial service-related website, you see an automatic chatbox opening up. That’s an AI chatbot you’re looking at. The bot allows you to choose your query from the given options. You can keep switching from different types of queries and get the answers you need. This seems quite elementary but the idea behind it is not. This is an excellent use of AI and machine learning to minimize human intervention and resolve customer queries promptly. Chatbots do not always answer customer questions as they can also aid in customer support and redirect customers to specific actions and collect organic data in the form of feedback. And the best part is that they reduce costs and enhance customer satisfaction by adding value to the overall experience.
2. Use of Biometric Data
Earlier only used by the government agencies, biometric data has almost stopped the threat of scams and frauds. Even the most basic application of Fintech i.e. ATMs, use iris and fingerprint scanners. Similarly, financial institutions collect and use bio metric data for maintaining security and authenticity in their processes.
For instance, many insurance companies use fingerprints in their authentication processes to ensure that they aren’t being fished.
Another example of this can be the apps from different banks that you use. Instead of choosing a password or a key code for finalizing a payment, you can use the fingerprint scanner of your phone to authenticate an operation maintain security throughout the process.
3. Omni-Channel Banking
Fintech has enabled banking and investment banking institutions to operate without having to depend on their physical branches. Online banking, mobile banking, and banking and investment apps can initiate transactions and other actions with just a touch. This, as a result, has allowed banks to reduce the number of branches. Federal banking systems that work on the closely interconnected networks have made banking extremely easy and hassle-free. Occurrences like server-downtime and delayed payments have become a thing of the past and more and more banks are installing automated customer tellers that deal specifically with the customers who’ve only come there to get specific information.
The 2019 data shows that there were 525.3 million internet users in India and this number is growing quite fast. Thanks to the government initiatives such as Digitalization and Jan Dhan Yojna that connected millions of people to the mainstream banking along with cheap internet tariffs that allowed people to get online, India is becoming one of the fastest growing BFSI hubs across the globe.