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Investment in fintech continues to increase, breaking records with a rise in venture capital investment across the globe. The fintech industry is changing the procedure of lending, payments, insurance, and credit settlements. Fintech companies are developing and deploying several innovative solutions for banks and financial institutions.
Banks have started offering multi-channel experiences where a user can now interact with a bank through multiple channels such as apps, web, smart speakers, and digital voice assistants. Embedded AI is used in the backend operations of the bank where it quickly identifies the problems in their operation and brings improvements in process efficiencies. Banking will become easier with UPI and AEPS. With APIs, the process of carrying out payments and other banking transactions would be greatly quickened and simplified. APIs aimed to make the experience of the consumer simpler and more convenient.
Banks will leverage the power of fintechs to customize the offers that users see on all their devices and change the appearance of apps based on actual use. This will make users more connected to banks and lay the groundwork for efficient self-service. Advances will also be made in providing users with pre-filled data based on their past interaction history and preferences.
It allows users to use the basic automated services. Banks will follow new architecture such as micro apps and microservices, which will allow them to introduce changes faster with minimal impact on existing deployments and services. Today, banks have begun to adopt additional measures to ensure data security at all stages using a combination of encryption, OTPs, and biometric authentication. Cloud-based banking has become common due to the enhanced security it offers.
Many services are combined today to rebuild financial services. Fintechs need to engage established industry players at a broader level and focus on enhancing the customer experience and services to thrive in the digital age. Although technology is a major component, customer experience is the basis for the success of fintech.
See Also: Financial Services Review