Fintech Applications and Their Impact on Banking Systems in India

Fintech is the combination of two words: Finance and Technology. When the companies providing Financial services use technology they are called Fintech companies. Fintechs have notably revolutionized the field of traditional banking and financing services. Banking systems have seen a significant makeover due to the development of Fintech Applications.

In the beginning, technology was being used only in the backend systems. Now, its abundant use can be seen in all the fields of financial services. If we see its use in mobile and online payments, fund management, stocks, etc. we can say that Fintech Applications have a great impact on banking systems in our country and a complete transformation can be seen in the fundamental process.

Fintech applications have made digital payments possible, insurance claims can be made sitting at home within almost no time, lending and borrowing processes have become easier and customer friendly. Banks and financial companies are adapting to the customer’s demand and the risk factor has also lowered down because of digitization, Blockchain, Artificial Intelligence, etc.

Fintech Applications and Their Types

Now, let’s talk about the different types of Fintech Applications and how they have changed the face of banking systems:

Digital Payments and Mobile Wallets

After demonetization, digital payments and mobile wallets have become the new normal. Although these services were being used earlier also, demonetization has made them popular among the masses. Sending money using digital methods has made the payment methods cost effective and time saving.

Lending and Borrowing Process 

Lending and borrowing process has become less risky and swift. Data of customer’s credit score and credit history can easily be processed by the companies. Now, loans can be applied online, after quick verification, the loan is approved and disbursed online, which saves the customer’s time and energy both as he does not need to visit the bank physically and no longer need to go through the lengthy process to avail a loan. The whole process has become more transparent now. 

Stocks and Trading

Emergence of online Trading Applications has made it possible for anyone and everyone who has interest in the stock market and trading, internet access and ability to invest in the stock market. With the help of these applications, you can invest your money, real time risk can be monitored and if you want, you can share your knowledge with other people too.

Personal Banking Solutions

Mobile banking and Net banking has totally changed the banking experience. You can use the banking services sitting in the comfort of your home. It has made the banking experience better, faster and more pleasant. Entrance of NBFCs in the field of finance has contributed to the digitization of the financial world. Presence of various mobile wallets has reduced the need for hard cash and digital payments have become the need of the hour.

Wealth Management and Investment

Use of Investment Solution Applications have allowed the people to manage their financial portfolios according to your choice from any corner of the world. You can hold your assets in a central management window. Here, cloud based technology, automation and bot-enabled platforms advise you about your investment and wealth management. 

Fintech Applications and Their Functions

Now, let’s learn about the functions of the Fintech Applications and how they are useful to us:

Personalized Services

Artificial Intelligence and Machine Learning have enabled the Fintech Applications to understand the needs and desires of the customers in a better way with the help of real time data. With the help of this available data services can be personalized according to the customer’s need and preferences which makes the experience more enjoyable and satisfactory.

Data Analysis and Tracking

Fintech Applications have enabled the customers to keep a track of their financial activities and their transaction history whenever they need. This information is available in whatever the Fintech application they use. This helps them to understand the fluctuations in their financial habits.

Authentication

Fintech Applications mostly use two-factor authentication, which is the correct way to secure digital accounts. Verification by SMS, limiting the number of failed attempts to access the digital payments make the digital payment methods secure. Trustworthy and secure fintech applications are more popular with the customers.

Fintech Applications have transformed the nature of the banking systems. They have helped to modernize the financial services and played a key role in building a better relationship between the service provider and the customer.

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Location: Nagpur, Maharashtra, India

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