CEO- Trust Systems & Software Pvt. Ltd.
1. How the breakthrough technologies like AI, Blockchain, intelligent automation and IoT are reshaping the financial services space in India?
In terms of customer behaviour management, in terms of offering various financial services, IoT, although it’s not that predominant right now, but in coming days, most other things will be machine driven rather than the human intervention and AI is going to play very, very crucial role in giving feedback mechanism to the entire applications so that the services will be improved, customer will have multiple choice and thereby the cost, end of the day is going to come down. Today it’s typically 2 percent, which is substantially high.
With automation and all these AI and IoT, the operational cost should come down to 0.5 percent, which will be benefit to customer as well as to the bank.
• Please talk about few use-cases where these technologies have transformed the financial business processes and overall customer experience?
Some of the finance companies, they are using this AI for offering multiple products to the customers and they’re able to acquire those customers online. Like if you see you’ll find a lot of messages coming to you, pre- sanction loans coming to you. These are all basically inputs from various credit agencies, your behavioural pattern, surfing pattern. All these data captured and based on the intelligence, the offers are made to the customer.
2. Please talk about the operational and financial benefits Fintech solutions offer to SMB and enterprise customers?
Both SMB and Enterprise behave differently.
For the enterprise or the industry expects that there has to be end to end solution for its employees, for its own organization and for its customer. What SMB typically, it is a cost and the service which matters. So, when we talk of fintech and latest platform and the technology, the service turn- around time has drastically reduced.
Most of the things are automated just like KYC. Earlier, it used to happen that the account opening itself used to take two to three days. Now it’s a matter of few minutes, your account gets open. NEFT has started 24/7, very shortly RTGS will also start 24/7.
So, basically banking will be 365 days 24 by 7.
Branch operations, probably may get reduced to five days working, which will also increase the service to the entire community as well as to the banking industry.
3. Payments have been at the forefront of India’s Fintech revolution with UPI, mobile wallets, mobile banking growing aggressively. What are the emerging trends in the digital payments segment in India?
Although, you find a lot of ATMs, cards. But going forward, cards may not be required. Your mobile becomes your digital payment system. Your QR code will suffice the needs of payment and authentication. Slowly, we are moving to card less economy and maybe very shortly a cashless economy.
4. InsuranceTech and WealthTech are also finding great acceptance with the growing Fintech space. What are the emerging trends in these segments?
Once the customer is acquired because of the technology and because of the various options available, every fintech company or a bank wants to provide a maximum solution through the same customer and thereby increasing their bottom line. That’s why fintech are now moving on to insurance segment where the risk is low and turn- around time is also low.
5. With the boom in digital transactions, the security of customers’ payment data has become extremely crucial. How are we securing the digital transactions and customers’ data?
New trend is coming. RBI has mandated some of the masking of master data.
The encryption, earlier used to be 64bit data encryption. Now it is mandatory that you have 256 kb of data encryption and VAPT: Vulnerable Assessment Penetration Testing. Every instance, every installation is mandated by RBI.
It has to be VAPT compliant, so a lot of security. PCIDSS compliance has also come up.
Now at every point, the secrecy, security and the penetration is very important. RBI is controlling all these and ensuring that their data is safe and secure.
6. What are the challenges that exist in the Fintech space in India?
The biggest challenge is that people still feel that bigger infrastructure, bigger banks are required.
In the Western world, the banks are changing. Entire banking is now moving on mobile.
In next 10 years, we will find there’ll be a banking, but there will not be big infrastructure for the bank. There’ll be a digital infrastructure.
7. What are the opportunities IT channel partners have in the Fintech space? How can they address their customers’ financial requirements with the partnership with Fintech players?
It’s always good to have partnership with fintech players and in I.T. space, it’s always the authenticity, secrecy, commitment of the partner. Is service commitment to the customer because of which he gives business.
So, if he has a relationship, then the partner relationship with customer works with fintech will definitely give better results.
8. What are the future opportunities you see in the Fintech space in India?
In terms of digitization, there’s going to be a paperless banking, all documentation. Government is planning to have digilocker, so you will find that it is completely, 100% paper less. Right now we have a location for the branch, for the customer. Once it becomes digital, all their documents will be authenticated using the document I.D. at the digilocker. A lot of paperwork will move out. It’ll be anywhere bank, serviced by person, sitting anywhere and service given at any location.
It’ll be independent of geography, product and it will definitely reduce substantial cost, end of the day of the service.