Financial technology is currently the most widely used buzzword in the Indian entrepreneurial market. According to this year’s PWC report, more than 95% of domestic financial service providers are looking for financial technology partners.
Fintech’s payment department is the most funded sector in the FinTech industry in India and is taking the lead. India’s financial technology investment is expected to return 29%, reflecting the industry’s high growth potential, while the global average is 20%.
However, in order to avoid ruining the industry and imitating the people in the market, making real ideas difficult to gain momentum, the industry needs to focus on building a future that transcends conventional patterns. Here are some new trends worthy of attention in the field of financial technology:
The emergence of cryptocurrency
On a global scale, the trend of cryptocurrency is widespread, but India is still lagging behind in this area. Domain names such as UnoCoin, ZebPay and CoinSecure have established several companies, but they require a wider range of coverage.
The new model of cryptocurrency is a matter of time because it is better than other trading models and is quickly catching up. Bitcoin has begun to attract users’ investment and savings purposes. The government has also set up a team to present a series of recommendations by the end of the third quarter of 2017.
New loan model
The loose regulation of the Reserve Bank of India on the financial technology industry paved the way for an alternative credit model. While seeking for exponential growth, many fintech startups are investigating new lending models, especially in the P2P lending space. An example of this can be seen on CASHe, which provides credit to credit card professionals with minimal documentation.
Some market participants (such as Paytm) have been included as part of the program by allowing users to use their fingerprints to log in to supported devices. However, FinTech participants may go further in the next few days by introducing advanced biometric inspection systems such as retinal scanning.
VR trends have attracted a lot of attention in the technology world and are able to quickly see the mechanisms developed to facilitate payments through his medium. Alibaba has implemented VR Pay. This is a system that allows virtual reality shoppers to pay for goods with a nod. Payu India CEO Amrish Rau firmly believes that the trend of adopting this mechanism for financial technology participants in India will continue.
He said: “We believe that payments related to virtual reality will be formed in the next few years, and the contact points are negligible.”
Although chatbots are limited to customer service, many companies are investigating whether they can perform computation-based work related to many loans. Multinational companies such as Betterment and Wealthfront have tried this approach, but there are still trust and relationship challenges in this area.
COD will die
Even today, it is estimated that 80% of India’s economic transactions are cash transactions, compared with about 21% in developed countries. Controlling the use of cash in offline transactions is very difficult, but online space (mainly e-commerce participants) can be found in the tip COD mode. Many websites have not yet accepted a large amount of COD, and this trend may disappear in the next few days.
Rau said: “Because consumers have multiple choices when choosing a payment method, we believe that the positive choice of COD as an online market participant will completely disappear.”