The millennial generation has been the first generation that has had access to mobile phones and the internet even before their adolescence. Hence, this generation perceives and consumes products in a very different way from its earlier generations. The Indian millennial population, standing at 400 million, is fast becoming the driver of the mobile commerce revolution in India. Their embrace of online shopping through mobile devices, bolstered by the rapid expansion of broadband internet availability and reliability, is set to revolutionize the business landscape in India, and perhaps beyond.
That is where big businesses need to realise that they could cease to exist if they do not customise and adapt their offerings to the unique needs and expectations of this generation which is on course to completely disrupt the way industry operates.
Entry barriers faced by new entrants in the BFSI segment have mitigated due to the emergence of new business models, technologies, and needs of the customers. Fintechs have leveraged this opportunity by embracing technology and AI to drive a revolution in the field of financial services.
Millennials prefer transparency and convenience. They essentially demand to have a personalized product or service at their fingertips wherever and whenever they need it, and that is where fintechs can leverage data and AI to offer superior experience and services. With drastic changes in the scale, scope, and complexity of millennials’ demands as well as the financial services available, technologies like SMAC (Social, Mobile, Analytics, and Cloud) are providing banks with the means to reach more customers than ever before.
The changes in the Government policies with a focus on financial inclusion, and initiatives like Aadhaar and India Stack, have also added greater impetus to the fintech revolution. For example, the state government of Andhra Pradesh is targeting the creation of five lakh jobs by 2020, powered by the spurt of fintech companies. The AP government has announced that it will set up a fintech incubator fund which will invest Rs 100 crore in startups. Initiatives like these are changing the landscape of fintechs in India.
According to KPMG International’s report, data analytics, payments and lending, and blockchain will drive growth in the fintech space. Furthermore, technologies like Artificial Intelligence and Machine Learning are paving the way for fintech players to innovate and disrupt the traditional banking system. The biggest companies in the world today are successful because of how they leverage data. To ensure competitiveness in today’s digital world, a bank should strategize its business models by efficiently making use of insights from data.
As the lines between tech giants and fintechs blur, accessibility, convenience, and personalization hold the key to success. Customers love fintech solutions for ease-of-use, cost- and time- efficiency, improved user experience, and new features with cutting-edge technology. That is where solutions built on top of data and artificial intelligence will hold an edge over others. Technologies like Conversational Chats, NLP, Neural Networks, and robo-advisory are redefining how customers interact with financial institutions.
Ultimately, fintech is designed to leverage data, AI, and technology to deliver a better user experience for all parties. Fintech eliminates long-standing business problems, reaches underbanked people and countries for financial inclusion, and offers convenience, personalization, and transparency. Hence, it is safe to conclude fintech is the future of banking.
Manav Jeet is the MD and CEO of Rubique, an online marketplace offering a comprehensive range of financial products and services.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)