Fintech is the way forward for Indian Banking and Payment system, as there is a lot of opportunity for growth in the fintech sector.
91% of the jobs at State Bank of India (SBI) is done digitally, which was unthinkable 35 years ago, and according to the managing director of State Bank of India, Mr. Ashwani Bhatia, 91% will soon be 100% shortly. The banks shall shift completely to the digital platform soon as the penetration of smartphones is going to increase.
In a virtual conference organized by The Confederation of Indian Industry (CII), Mr. Ashwani Bhatia stated hi viewpoints about the fintech platform and the transformation of bank branches into merely distribution points like Europe and other places.
Fintech is the way forward for the Indian banking sector and Indian payment system as there lie big opportunities as the system evolves.
Fintech is those companies that use technology to offer financial services to businesses or consumers. According to the managing director of Bandhan bank Mr. Chandra Shekhar Ghosh, a combination of banks and fintech brings the best value to the customers. Banks and fintech will co-exist to drive the ecology of money and fintech will bring benefits that the banks do not inherently have and vice-a-versa.
It is about the CX (customer experience) rather than the UX (user experience. The best customer experience comes with a combination of traditional banking and fintech which will thrive and will together drive the growth for themselves and will also act for the benefit of customers as the customers are the priority.
Fintech companies will have to develop products for each segment rather than jumping to the same space as India is not a single large market, but a combination of various small markets.
The COVID-19 period and the lockdown induced by the COVID-19 has resulted in a drastic change in consumer behavior and digital payments have seen significant growth in this lockdown period and are going to continue the same way after the COVID-19 period is over.
Cybersecurity needs to be strengthened for fintech service to thrive as customers need to be aware of the practices and need to protect themselves from being defrauded. There is an increase in cases of online fraud during the COVID-19 period, and the most defrauded customers are the elderly who don`t know anything about technology, hence strict regulatory measures must be kept in place.