The financial service industry is a standout amongst the quickest paced and precision based businesses, attributable to its needs of long-haul information upkeep, exchange precision, security and so forth. Consequently, innovation isn’t new to this area. Today, however, a new arrangement of innovation patterns are disrupting this sector, making an immense opportunity for FinTech startups. From cash notes to human interface and information administration, everything in the area has gone computerized.
Technology is a must-have in BFSI for managing risks, large-scale data operations, customer profiling, etc. At present technology is used to obtain online customers, as several financial products are available online, to feed the mobile population. Disruptive technologies in financial services or FinTech startups have transformed almost every financial activity from banking to payments raising loans etc. The objectives of most BSFI startups today, unlike traditional companies are the number of transactions rather than maximizing the transaction size. What fintech startups might not make in size of transactions, they are more than making up in the number of transactions.
The solution for FinTech startups no matter how you come across at it is to catch numbers and provide them without comprising any extra cost. There are two noteworthy difficulties, which organizations, from financing to protection, are confronting today. Right off the bat for conventional organizations, dealing with a custom technology stack with the new-age set of technology ideal models is a really complex issue and also, adjusting expenses for little exchange sizes must be kept at the base. Until and apart from if associations can deal with these two together, they won’t have the ability to create a success in the online market. This needs an evaluation of present procedures and disposal of pointless ones and all the more fundamentally an enthusiasm to expand from the new children on the block
How the insurance gap is growing online
Within the FinTech gap, digital insurance is set to turn out to be massive in India, on the back of a developing number of internet users, predicted to touch 402 million by end of 2015. Developing infrastructure, reasonable internet, and the spread of mobile phones in identical evaluation to urban and rural India are major motives for this developing internet penetration.
A BCG Google report asserts that by the year 2020, the non-life insurance business is balanced to develop to 3-3.5X to about Rs 230K crore, of which online insurance will donate most to this development. In fact, the online insurance market in India is likely to produce 20 times. Moreover, 3 in every 4 insurance policies sold will be affected by digital channels at either pre-purchase platform, purchase or renewal period.
Insurance is seeing an enormous change — from being a seller’s market to becoming a buyer’s market. Online insurance marketplaces are going to be a channel in this change by offering a flawless insurance buying experience. More preferences, niche products, rising customer awareness regarding protection and savings solutions, backed by good technology that improves the consumer experience, among other things, all point to digital players leading the insurance industry into a modern era
Successful digital insurance brokers set apart due to their great proprietary technology and tech features that powers purchasing of insurance products across insurers in an easy, quick and personal approach for the user. An extremely user-friendly and contemporary interface is essential. In one rapid glance, a consumer should be able to recognize the key features one requires to think. Investing in a strong support team that hand embraces customers via the tiresome claims method is also essential as is setting up a capable advisory team to offer real insights and suggest to customers on the correct insurance choices, when they look for suggestion
Today, most of the development in the FinTech space is being increased by the e-commerce revolution and the implementation of mobiles as the main device. regular transaction models, like wallets, banking have been able to create direct use of mobile technologies to connect customers, but others are attempting to find proxy manners to get into the mobile space. For e.g. mobile apps, which offer telematics are being utilized to comprehend driving behavior and underwrite risk in motor insurance. A ton of service requests for all financial sectors has moved to mobile, which is where companies end up saving a lot as a substitute for opening offices and stores.
The next set of cutting-edge technology that can disturb financial technology space will be Artificial Intelligence-based bots which can identify trends and classify customer profiles all on their own. The bots will figure out your risk profile, do the sales while engaging you in meaningful conversations and service you right on your mobile device. Intuition got replaced with data patterns based decision making, and the bots will replace the complete cycle from data to decisions.
At the end of the day, FinTech is here to stay and start-ups are leading the way. According to a report by an analytics company, Tracxn, there were 750 registered FinTech companies in India in 2015 of which 174 launched that year alone. Banking regulations are becoming more comprehensive and banks are investing in FinTech start-ups. It’s yet to be seen which ones will appear as winners but for now, the drive is on in this space.