Parting from traditional brick-and-mortar banking, there is a paradigm shift in how banking is done. Today, banking is also about value addition to the customers and serving their financial needs. And that is what Fintechs does!
A survey revealed that 53% of respondents from the banking sector are customer-centric 53% of respondents from the banking sector are customer-centric as compared to 80% for Fintech. In 2018, around 70% of senior banking executives revealed that collaborating with big techs and Fintech was a great opportunity for banks. So, how can new-age banking be fruitful for our business?
New Age Banking with Fintechs
Fintechs are changing the definition of banking. Let’s see some new-age banking services that Fintechs offer:
Due to Fintech lending applications, India’s digital lending sector is expected to grow from $9 billion in 2012 to $350 billion in 2023. Going by the figures, there has been a tremendous boost in retail loans, especially the small ticket size loans. Retail lending grew headstrong with an 18.10% year-on-year growth. Facilities like Buy Now Pay Later (BNPL), no-cost EMIs, etc., by Fintechs promoted retail lending. The BNPL market is expected to grow to Rs. 7 lakh crores by 2026.
Online transactions increased during Covid-19 mainly through UPI transactions. Fintech companies allow smooth money transactions with efficient payment gateways.
- International money transfer
India is one of the largest recipients of remittances; it received $87 billion in 2021. Doing international money transfers through traditional banking means filling up a form, submitting the same, getting the service enabled, and then conducting the transaction. Conversely, with Fintechs, we need to link our bank account with the wallet, and there we go!
- Personal Finance
Personal finance is more than just saving and investing. Fintechs are educating customers to help them make financially informed decisions. Fintech applications are today’s financial advisors.
- Equity financing
Fintech firms have made it easier for business leaders to raise funds. Some are directly connected to accredited investors, whereas others consider using crowdfunding models to start the fundraising process for any business.
Types of Financial Products
Here are some key financial products that drive Fintechs’ growth:
- Crypto: Blockchain is the future. NFTs, cryptocurrencies, and crypto coins are getting popular. Fintechs are developing ways to integrate them with everyday finance.
- Insuretech: Technology is revolutionizing the insurance industry. Insurance is no more limited to premiums and claims. Value-added services like chatbot support, doctor-on-call, telemedicine, etc., are attracting more customers than ever.
- Regtech: Technology also ensures compliance with regulations. Return filing is getting automated. Fintechs are ensuring timely compliance with laws by providing various products to businesses and people at large.
- Stock Broking: With Fintechs, we can invest in multiple asset classes from a single platform. Discount broking firms have attracted a large number of investors to stock markets.
- Plastic Money: Apart from credit and debit cards, plastic money includes slice cards, prepaid cards, forex cards, etc.
Financial products and services can extend to many other types, but their basic functions are similar to the ones described in this article. And with the right combination of financial services and products, we can easily cater to all your financial needs.
Niyogin is a leading Fintech revolutionizing the way people bank. This new-age neobank aims to power the MSMEs through Rural, Urban, and Wealth Tech solutions. From allowing retail outlets to provide financial services to fully digital credit access to MSMEs, it is driving the digital lending space to a new level. It also assists businesses and people in financial planning and wealth management! Have you partnered with Niyogin?