Microinsurance is a type of insurance designed to cater to the needs of low-income individuals and households, who often face financial insecurity due to a lack of access to formal financial services. It provides a safety net against unexpected events such as illness, accidents, and natural disasters, which can cause significant financial strain for those living in poverty. For low-income groups, micro-insurance can be crucial in providing financial stability and protection against risks that could lead to financial ruin. Many individuals in this group have little to no savings and live pay check to pay check, making them particularly vulnerable to financial shocks. Microinsurance plays a critical role in promoting financial inclusion and economic empowerment for low-income households. By providing access to insurance, these individuals can begin to build assets and investments, which can help break the cycle of poverty. In addition, it also promotes social welfare by reducing the burden on public services and resources, particularly in developing countries where government resources may be limited. By providing access to affordable insurance, the need for government assistance in the event of a crisis can be reduced, freeing up resources for other needs. Healthcare is a basic yet expensive necessity and microinsurance allows individuals from the poorer section of society to access it. Currently, individuals limit themselves to only government healthcare offerings, therefore, barring them from better healthcare facilities. Microinsurance cannot offer them the best of the facilities however, it has the capacity to elevate them from the basic healthcare offerings. This also reduces the government’s assistance and allows them to use resources for other needs. Last but not the least, a very significant aspect of microinsurance is its ability to build creditworthiness among the individuals who avail of it. It gets them introduced to the financial database thereby helping them to avail of larger financial services in the future that otherwise could be unavailable to them. Overall, microinsurance can help low-income groups build financial security, protect against unexpected events, and improve their access to healthcare and other essential services. This can help them break the cycle of poverty and achieve greater economic empowerment. How can Microinsurance be offered to low-income groups? A number of methods have been set up to reach the underserved segment to offer them microinsurance and bring them to the base of financial products. As stated in the figure above, commonly used methods to offer microinsurance are Microfinance institutions, Community-based organizations, Mobile network operators, Public-Private Partnerships, Innovative Business models, etc. Community-based organizations find it easier to tap this segment as there’s a trust factor already imbibed between them. Nonetheless, all methods to reach the said segment have proven to be effective and slowly yet steadily, the financial domain is getting to the low-income group.
Month: May 2023
Financial Literacy and the need for Financial Inclusion
Financial literacy is an extensive concept that involves several aspects like budgeting, saving, investing, debt management, financial planning, etc. It encompasses the ability to make informed and responsible financial decisions that can positively impact an individual’s financial well-being. Financial inclusion, on the other hand, refers to the accessibility and availability of financial services to all individuals, including those who are traditionally excluded from the mainstream financial system, such as low-income individuals, rural populations, women, and minorities. Financial inclusion aims to provide affordable and appropriate financial services, such as savings accounts, credit, insurance, and payment services, to empower individuals to manage their finances effectively and participate in the formal economy. Safe to say, financial inclusion and literacy work hand in hand. Each of these aspects cannot be weighed or regarded individually and must be dealt with in its entirety together. The need for financial literacy and financial inclusion is paramount for several reasons: Empowerment: Financial literacy equips individuals with the knowledge and skills necessary to make informed financial decisions, manage their money effectively, and achieve their financial goals. It empowers individuals to take control of their finances, make wise investment choices, and protect themselves from financial risks. 73% of Indians still await to be empowered as only 27% are financially literate meaning the rest have no access to financial services. Inclusivity: Financial inclusion ensures that all individuals, regardless of their socio-economic background, have access to affordable and appropriate financial services. It promotes economic participation and social mobility by providing opportunities for savings, credit, and investment, which can help individuals build assets, start businesses, and improve their standard of living. As of March 2022, the FI Index was 56.4 which fared better than the previous year’s however, given India’s 140 crore population, the efforts need to be doubled! Poverty alleviation: Lack of financial literacy and limited access to financial services can contribute to poverty and financial vulnerability. Financial literacy education, combined with accessible financial services, can enable individuals to develop sound financial habits, build savings, and make informed decisions about borrowing and investing, thereby breaking the cycle of poverty. As per a survey conducted by the Demographic and Health Survey before the pandemic struck, 16.4% of India’s population live in poverty, 4.2% live in severe poverty and roughly 18.7% fall into the vulnerable to poverty zone. This gives us a sense of how important financial inclusion is to empower the said population. Economic growth: Financial inclusion can foster economic growth by bringing more individuals into the formal financial system. Increased financial literacy and access to financial services can lead to higher savings, investment, and entrepreneurial activities, which can stimulate economic growth at both the individual and societal levels. For instance, 63 million MSMEs in India account for close to 30% of the GDP. Yet, they were severely underserved until recently. With Fintechs joining the force with banking institutions, the scenario is steadily changing. This change will reflect on the GDP too as MSMEs and the underserved population will be empowered. Consumer protection: Financial literacy equips consumers with the knowledge to understand financial products and services, compare options, and make informed decisions. Financial inclusion ensures that individuals have access to fair and transparent financial services that are suitable for their needs, protecting them from predatory practices and promoting financial well-being. For example, with 45.36 crore internal migrants in India constituting 37% of the country’s population, Domestic Money Transfer plays a significant role. Without financial literacy, a large number of this population was defrauded by intermediaries. However, with a sufficient amount of literacy, this challenge is being eliminated to a large extent. In conclusion, financial literacy and financial inclusion are essential for promoting financial well-being, economic growth, and social inclusion. By empowering individuals with financial knowledge and providing them with accessible financial services, we can foster a more financially inclusive society where everyone has the opportunity to thrive and participate in the formal economy.
Technology’s Role in Financial Inclusion
The start of the ‘technology era’ was a turning point for human evolution. The invention of ‘the wheel’ was the beginning of one of the most important eras of humankind. Over the years, technology along with its surroundings has evolved manifold and today, it is upholding several aspects that humankind as a society is striving to achieve. One very critical element in modern times is financial accessibility and inclusion. Technology plays a critical role in advancing financial accessibility and inclusion, which refers to the access and use of affordable and appropriate financial products and services by all segments of society, particularly those who are underserved or excluded from the traditional financial system. Tech elements that have furthered financial inclusion Digital payments refer to access to traditional banking services to make and receive payments. Digital payment has offered safe, convenient and cost-effective ways to conduct financial transactions, including remittances, bill payments, and peer-to-peer transfers, without needing a physical bank account. Digital payments have witnessed more than 200% growth in digital payment volume since FY18-19. Total transaction value is expected to show an annual growth rate of 15.56% resulting in a projected total amount of US $ 321.70 Bn by 2027. It is not only building a payments structure for Urban India but also for the Rural market. As per World Economic Forum, the Digitalization of small and medium businesses could add anywhere between $158-216 billion to India’s GDP by 2024. Technology has made it possible for individuals to access basic banking services through online and mobile banking and platforms. It has allowed individuals to check their account balance, make transfers, pay bills and even apply for loans, insurance and other financial services online, eliminating the need for physical visits to brick-and-mortar banks. The number of mobile banking payments across India in the fiscal year 2019 accounted for approximately 6.2 billion. This was a tremendous increase compared to the previous fiscal year. For instance, to further the use of online and mobile banking, SEWA – the largest trade union in India has trained 4,00,000 women in digital payment methods. Technology has facilitated the use of big data and alternative credit scoring models, which can assess the creditworthiness of individuals who lack a formal credit history. This enables financial institutions to extend credit to those who were previously excluded due to a lack of credit history, thereby promoting financial inclusion. Today, owing to this, 63 million underserved MSMEs in India are served with a range of customized financial services. Technology has made financial education and literacy more accessible to underserved populations through online resources, mobile apps, and educational content. This empowers individuals with knowledge about financial products, services, and best practices, enabling them to make informed financial decisions and manage their money effectively. With a rural population of 900 million, the SECC measured that 23.5% of rural households have no adults above the age of 25 who were literate. Illiteracy bars the population in question from accessing financial services since they are unable to open a basic bank account. However, to challenge this issue, biometric identification was introduced which enabled the illiterate population to open and access bank accounts with the help of their fingertips. For instance, AePS; individuals can withdraw money or enquire about their bank balance with their fingertips. This has proven to be helpful for a number of individuals and has allowed them to be included in the financial realm. Overall, technology has the potential to democratize access to financial services, reach underserved populations, and promote financial inclusion. However, it is important to ensure that technology is implemented in a responsible and inclusive manner, taking into account issues such as data privacy, cybersecurity, and digital literacy to ensure that the benefits of technology are shared widely across all segments of society.
iServeU; Serving the Rural
India’s Rural segment amounts to approximately 900 million individuals and massive scope of work. The Government of India (GOI) and financial institutions are working tirelessly to bring the said underserved market on a symmetrical platform of inclusivity. In recent years, financial institutions have been able to reach deep rural areas of India by leveraging the rails set by the government, for instance, UPI Lite and 123UPI. The said improvement can be noted in the growth of the Financial Inclusion Index which grew from 53.9 in 2021 to 56.4 in 2022. Fintechs or upstarts have been active participants in this master plan. By combining technology with finance, Fintechs are making their way through various obstacles. By designing products and literacy programs apt for the target audience, they are promoting financial inclusion, freedom and empowerment. iServeU, a Niyogin subsidy, aims to power the rural segment through its Rural Tech platform. By implementing its distinguished idea of leveraging existing infrastructure and physical distribution channels, iServeU partners with business correspondents who onboard local retail stores or Kirana stores. This approach makes the intention of financial inclusion achievable as penetration into the market through trusted sources of the said community is easier. At present, iServeU has successfully impanelled more than 3,00,000 kirana stores spreading across 25,000 villages! The intention of embracing such a distinctive method of reaching out to the rural population is the need to reduce costs. By leveraging the existing base, iServeU sizeably reduces its operational, customer acquisition and go-to-market costs. By collaborating with partners, business correspondents and agents while equipping the impaneled retail stores with frictionless and easily accessible banking, financial and payment services, iServeU opens a world of financial services to the rural population. As the diagram projects, iServeU’s product stack comprises of Aadhaar Enabled Payment System (AePS), Micro-ATM, Bharat Bill Payment System (BBPS), Domestic Money Transfer, Transaction-led credit and Microinsurance. These products are offered to the rural population through impaneled retail stores and facilitated by allied banks. In this entire process, third party or business correspondents play a major role. iServeU empowering stakeholders The Rural Tech platform empowers its stakeholders by offering – Income augmentation to Retailers Network monetization for Partners Optimize market access and product delivery for Banks Customer-centric approach that enables a tech-driven environment for the Customers Impact on the Rural areas as a whole Empowering Micro-businesses through micro-credit iServeU’s entire product service activity is digitally driven. Range of Products Aadhaar Enabled Payment System (AePS) Considering a significant chunk of individuals residing in rural areas have limited access to education and therefore find it difficult to adapt to the concept of digital transactions, iServeU presents them with an opportunity called AePS. Through fingerprints or an Aadhaar card, individuals can now make quick cash withdrawals, make balance inquiries and much more. Micro-ATM (m-ATM) An equivalent of AePS, m-ATM allows individuals to withdraw cash and enquire about their bank balance. However, in this case, they require a debit card. iServeU equips its impaneled Kirana stores with an android app that has a card reader embedded within to make these transactions possible. Bharat Bill Payment System (BBPS) By onboarding over 100 recharge and bill operators, iServeU ensures the rural population can go digital while making payments. It lets them digitally make instant mobile, landline, electricity, broadband, water and gas bill payments. The interconnected bill operators ensure that these services are automated and uninterrupted. Direct Money Transfer India has about 450 million internal migrants and Domestic Money Transfer is an intrinsic part of them. Migrants often rely on unmonitored methods of money transfer and therefore are often scammed by intermediaries. iServeU offers a regulated method, i.e., Domestic Money Transfer service to migrants where their money is transferred to their family members securely. Furthermore, the elimination of an intermediary has played a big role in limiting fraudulent activities. Micro-credit In terms of micro-credit or loans, rural areas are severely underserved. Owing to the lack of accessibility coupled with the risks associated with rural lending, financial institutions are apprehensive to venture. However, 52.3% of the total MSMEs are hosted in rural areas making the said audience a potential target audience. Taking this as an opportunity, iServeU now offers micro-loans to businesses in rural areas with limited access to financial services. Micro-insurance The rural population majorly falls in the low-capita income threshold along with having limited financial literacy. This makes it impossible to weigh them at par with services offered to the urban market. iServeU offers the rural market micro-insurance where they can insure their assets at affordable prices from trusted sources near them. iServeU’s growth chart Partners iServeU has developed manifolds in the past years and currently holds a retailer network of 2,46,853 individuals. The Gross Transaction Value (GTV) of the Rural Tech platform was C 87.2 billion in FY22, up 51% YoY from C 57.6 billion in FY21. The overall growth in iServeU’s model planning, partners, retailers, etc., indicates a positive trajectory further toward complete financial inclusion!
The Niyogin Journey
This inciting journey began in the year 2017 when two friends, Amit Rajpal and Gaurav Patankar manifested their vision of empowerment across strata through financial inclusion and equitable financial opportunities. Their core belief is that to measure the concept of growth, financial inclusion is a vital and inevitable part. And thus began the journey of Niyogin; a Sanskrit word that literally translates to ‘Empower’. The thoughtful name and well-crafted business model mean Niyogin is always thinking ahead to adapt to changing realities and emerging needs, with innovation, flexibility and agility serving as some of its core values. Innovation and adaptability are the cornerstones of the founding principles of Niyogin. Throughout its journey, Niyogin has strived to continuously evolve and, in doing so, has continued to deliver growth for the organization and its associated partners. It understands that these values are fundamental to its progress and, thus, is committed to reimagining itself at every juncture. All about revenues Niyogin witnessed an income of Rs 122.3 million in FY18, a year into its inception. Thereafter, it enjoyed a steady growth YoY ranging from Rs 228.5 million in FY19 to 506.3 in FY21. Despite the pandemic’s stir globally, Niyogin displayed an income growth in FY20 and FY21 from Rs 280.5 million to Rs 506.3 million respectively. As of date, Niyogin stands at a whopping income of Rs 1070.8 million! Owing to its deliberate strategic steps and alliances, Niyogin has been able to exhibit growth and revenues even in times of global distress. Niyogin’s acquisitions and product stack To build an ecosystem of customer-centric products and services that embraces every stratum of society under its umbrella, Niyogin gradually introduced services into its ecosystem over the years. What started in the credit segment – Unsecured Business Loans alone boast investments, insurance, banking and payment products, all on a single platform! By acquiring two very strong visioned companies, iServeU and Moneyfront, Niyogin cemented its hold in the market. Where Moneyfront offers an automated WeathTech and Distribution (Investments) platform that ranges from mutual funds, bonds, debentures, government instruments and much more, iServeU specializes in Rural Tech. They focus on uplifting the rural area by leveraging already existing infrastructure and the consumer’s trust. With 3 Lakhs Kirana stores impaneled, iServeU services 25,000 villages with credit, MicroATM, Aadhaar-enabled payment system, Domestic money transfer and much more payment and banking services. Financial inclusion and empowerment are Niyogin’s nucleus and every strategic move, acquisition and alliance have been made keeping the end goal in mind. The current state Niyogin’s mission is to provide financial access to every individual and business who find it difficult to achieve their goals due to financial constraints. In a country that has a population of 1.4 billion of which 900 million are rural and with 63 million MSMEs, India is beaming with opportunities! Many consumers and businesses are at the lower end of the pyramid and have limited to no access to financial services; that is where Niyogin steps in. With the government setting the rails with UPI and Aadhaar Stack, Niyogin leverages the said infrastructure to target potential customers through partners. Niyogin’s business model is such that it does not directly cater to the end users but assists its partners to reach these customers by leveraging Niyogin’s technology stack. However, the game changes when we talk about rural areas. In this market, committed physical channels or pure digital channels don’t entirely work or thrive owing to high operational costs against small ticket sizes, the lack of access to smartphones and restricted knowledge in completing digital journeys. As a technology-first platform that leverages existing physical distribution across a broad product stack with a modular orientation where Niyogin’s customers pick and choose products they are keen to build off. Niyogin leverages the “rails” that have been put in place to come together to create an exponential opportunity. The future prospects Niyogin has built off a financial inclusion based payments platform and is broadening its remit to include POS (Point of Sale) solutions, financial services products including loans, deposits, insurance and ultimately could also add a commerce vertical to create a comprehensive ecosystem that serves this vast market. Niyogin firmly regards constructive feedback it receives from its enterprise customers who are market-leading institutions to deliver its vision. With a hyper growth strategy set in place for the coming years, on the urban front, Niyogin aims to solve more complex issues in terms of financial services access for micro and small businesses by building a platform centered around their trusted financial advisor. From an organizational point of view, Niyogin has hired talents across businesses to add a fresh perspective to its existing strategies. This is a significant step for Niyogin specially to add value to relationships (financial advisors), analytics (platform) and product and automation (FI partners). Successful relationships within and outside the organization happen to be the recipe to break barriers and add value across levels. Financial Inclusion is Niyogin’s core priority and delivering on it in an open, smart, customized, modular platform is what it aspires to achieve. Niyogin means to ‘Empower’ in Sanskrit and we are committed to its ethos. Niyogin feels increasingly confident that it is at the start of a journey where it is brimming with confidence and opportunity!
Fintechs designing the ‘One Platform’ Concept
With thousands of Fintechs in the market constantly experimenting with newer products and services, the idea of bringing it all to a single platform was quite anticipated. However, Fintechs are now expected to do much more. Fintechs began by designing a virtual universe where customers could choose from a range of products and services; however today, they are allowing customers to avail of all the services on a single platform. For instance, providing insurance with credit, payment gateways on investment platforms, credit on shopping apps, etc. Although Fintechs face an array of challenges pertaining to their strategic directions, they emerge with better services across financial needs. The purpose of designing the ‘One Platform’ concept Fintechs are creating single platforms for multiple services for several reasons: Convenience – Having multiple services available in one platform makes it more convenient for customers to manage their financial needs without having to switch between different applications or websites. Cost Savings – Developing and maintaining multiple platforms for different financial services can be costly for fintech companies. By offering multiple services on a single platform, they can save on development and maintenance costs. Cross-selling – Fintechs can use the multiple services offered on a single platform to cross-sell their other services to existing customers, thereby increasing their revenue streams. Data Analytics – Fintechs can leverage the data generated by the various services on their platform to gain insights into their customers’ financial behaviour, which can inform future product development and marketing efforts. Competitive Advantage – Fintechs that offer multiple services on a single platform may have a competitive advantage over traditional financial institutions that offer separate platforms for different services. This can help fintechs attract and retain customers who prefer a more streamlined and integrated financial experience. The benefits of having multiple solutions on a single platform There are several benefits that users can enjoy when multiple financial products are available on a single platform – How are Fintechs designing the ‘One Platform’ concept? Fintechs are creating single platforms for multiple services by leveraging technology and partnerships with other companies. Here are some ways in which fintechs are creating these platforms: API Integration – Fintechs can integrate different financial services, such as banking, lending, investment, and insurance, using Application Programming Interfaces (APIs). APIs enable different software systems to communicate and exchange data with each other, allowing fintechs to combine services from multiple providers into a single platform. Partnerships – Fintechs can partner with other companies that offer complementary financial services to expand their offerings on a single platform. For example, a fintech company that provides investment services can partner with a bank to offer banking services to its customers, all through a single platform. In-house Development – Fintechs can also develop their own in-house financial services and integrate them into a single platform. This can include building their own payment processing systems, digital wallets, or investment platforms. Acquisitions – Fintechs can acquire other companies that provide different financial services and integrate them into their existing platform. This can help fintechs quickly expand their offerings and gain access to new customer bases. Overall, fintechs are using a combination of strategies to create single platforms for multiple financial services, enabling customers to easily manage their financial needs from a single point of location. They are ensuring that their focal point is the users, their journey, experience and benefits.
Micro-lending changing the Rural landscape
The origination of the micro-lending industry in India dates back to the 1980s when India took inspiration from Bangladesh’s successful reforms where they benefitted from distributing loans to the underprivileged women of their region. What began as an experiment, quickly turned into something substantial for India. Today, India’s micro-lending portfolio stands at Rs 2.93 Lakh crore with 6 crore unique borrowers and shows a further growth of 23.5% yearly. With a loan portfolio worth Rs 2.93 lakh crore, the microfinance industry grew by over 16 times in the last 10 years. Majorly served by 202 businesses, roughly over 130 million Indian households, i.e., one-third of the population have access to microfinance as per NABARD’s Status of Microfinance in India report for 2020-2021. Over the years, the success of micro-financing has witnessed a visible shift from banks to NBFCs. According to Sa-Dhan – an association of the Micro-Finance Institutions (MFIs), the NBFC sector is currently dominating with a usage share of 37.53% while banks take a 36.18% slice of the pie, giving away the remainder to other institutions. The total portfolio size of NBFC- MFIs has grown nearly by 7% quarter-on-quarter and amounted to Rs 1,01,678 crore as on September 2022. Inquiring deeper, as per Microfinance Institutions Network, NBFC-MFIs have 22% of their portfolio in urban India and 78% in rural. What has been the micro-lending threat in Rural India Small business owners and merchants, especially ones residing in rural India were often left underserved by the mainstream financial institutions given the high-risk quotient they bring with them. High operational costs coupled with the threat of fraud, defaults and NPAs often left banks in a grey area on how to service the said market. Moreover, Regional Rural Banks (RRBs) that service the rural market often face trouble with inadequate finance since they depend on NABARD to collect finance for their further operation. Given that rural households often have low capital income and hence, collecting deposits to raise funds has been the root cause of this entire fiasco. Rural households largely depend on natural resources like agriculture and other rural economic activities for their survival therefore, natural calamities and other natural menaces play a big role in the success of their business cycle. However, reimagining a way with lower operating and market costs by financial institutions has ensured an improved lifestyle for many rural households. It has further led to the growth of the said sector. Micro-lending changing the landscape Micro-loans are distributed by a range of institutional channels– Scheduled commercial banks (including small finance banks and regional rural banks) Cooperative banks Non-banking financial companies Microfinance institutions However, NBFCs hold a major chunk of this market followed by banks and other micro-finance institutions. A combined amount of Rs 45,830 crore in the form of micro-loans was disbursed in the quarter ending December 2022. Micro-lending institutions are expanding their services by introducing other financial services like insurance, remittance, AePS, etc. while providing training and assistance to the unversed. As for the market leaders; NBFCs have introduced a new technology that enables borrowers to make daily repayments against their loans called Equated Daily Instalments. They have also introduced PoS devices, apps, etc. to allow small businesses to benefit from digital payment methods. Despite a myriad of services already designed for small businesses, financial institutions still have a great scope of work in the said segment. With the MSME sector offering 111 million job opportunities and contributing to close to 30% of the nation’s GDP, there’s still a credit gap of $397 billion; a sizeable opportunity for financial institutions. With the RBI’s new guideline published on March 14, 2022, where they have notched up their support, micro-loans have been defined as collateral-free loans to a household comprising husband, wife and unmarried children and with a yearly income of up to Rs 3 lakh (revised from Rs 2 lakh for urban areas and Rs 1.6 lakh for rural areas earlier). The new rules also lift the price cap on interest rates to ensure that all microlenders are brought on common ground. Where rural households with small businesses struggled to avail basic amenities are today given access to a range of financial services allowing them to attain financial freedom. Micro-lending is changing the rural landscape by offering households the finance they require to build themselves. Although the service is still in its embryonic stage with a wide gap to fill, it can widen its audience range and promote inclusivity in the long run.
Tech Trends in 2023
The Information Age, alternatively known as the Computer Age, Digital Age, Silicon Age or New Media Age, is a mid-20th century period that is characterized by a shift from traditional industries to an economy being built on information technology. As of the current date of 2023, information technology has become an invaluable part of every industry we know of. It has reimagined entire business designs, models and processes therein. Let’s have a look at some compelling tech trends that have engulfed our interest. Extended Reality (XR) XR is a combination of virtual and augmented reality to create immersive experiences. It is being used in several fields such as education, gaming, healthcare, etc. However, it is re-envisioning the financial sector. XR is being used for purposes such as training, visualization, customer engagement, risk management, etc. For instance, XR can be used to visualize financial models in 3D allowing analysts to gauge relationships between different variables. Or, banks can use ER to create virtual tellers and access financial information and services. To list down, XR has several usages in the financial sector, transforming its functionality. Quantum Computing The development of quantum computers, which use quantum bits (qubits) instead of classical bits, has the potential to revolutionize industries such as finance, healthcare, and transportation. Speaking about the financial sector, quantum computing can enable financial institutions to perform complex organization calculations which can lead to better portfolio management and risk diversification for investment companies. It is also swift in undermining risk factors in real-time which allows companies to develop a better risk-averse model. Internet of Behaviours (IoB) The IoB is a concept that refers to the collection and analysis of data from various sources such as social media, mobile devices, and wearable technology to gain insights into people’s behaviours and preferences. This technology is a big gain for the financial sector as it contributes heavily to predictive analysis and consumer insights. Given that the financial sector is reimagining its approach and turning customer-centric, IoB ensures its vision meets reality. Autonomous Systems Autonomous systems such as AI and ML have a significant impact in several fields, especially the financial sector. Ranging from fraud detection, consumer insights and experience, trading and risk assessment to compliance, AI and ML contribute to every bit. For instance, the development of chatbots with the help of AI has allowed financial institutions to understand and resolve consumer grievances/preferences almost in real-time. This ensures an enhanced customer experience (CX). Blockchain As we know, blockchain is a decentralized, distributed ledger technology that provides a secure and transparent way of storing and sharing information. Means, it benefits the finance industry in numerous ways, especially in handling critical functions like payments, settlements, asset management, etc. With the help of blockchain, financial institutions can structure and implement better, more secure and quicker services with much lower costs. Edge Computing Edge computing refers to the processing and analyzing of data at or near the source, rather than sending it to a centralized data center. In the financial sector, edge computing can help to improve operational efficiency, reduce costs, and enhance customer experience. For example, edge computing enables financial institutions to process and analyze their data real-time leading them to make quicker and better-informed decisions thereby reducing their risk quotient. We understand that technology is ever-evolving and with each passing phase, we will experience a new revolution however today, these trends are making a visible mark in several domains, especially the financial sector.