Page 28 - Banking Finance December 2022

ARTICLE

2. Digital valets like paytm, Mobiquick have impact on by
deposit held in the bank accounts

3. QR code enabled payment systems, became an
alternative for traditional money transfer/POS
transaction etc.,
4. Usage of Video KYC in account opening processes
5. E Rupi, an SMS or vochuer based, rupee backed asset,
helpful for offline payment, a latest launch in direct
benefit transfer activity to avoid broker or middle man
while delivering government benefits.
6. Lot of Personal loan offering platforms gaining their
momentum.

in helping the individuals to meet the personal obligations, Interdependence of Fintechs and Banks:
as most of the products are for consumption purpose.
Fintechs evolved as disruptors, by launching customer
Growing consumerism in the country
centric, easily adaptable products simultaneously with the
Growing young population rapid growth of smart phone technology, internet usage.
'Consume today pay for it later' attitude
Fintechs' using latest technologies like, artificial intelligence,
Simple product, to meet specific purpose
machine learning to assess consumer behaviour from the
Increased brand image back ground itself. Emotions of consumer also being taken
care while launching new products.
Capital optimization are some of the features of retail
products.
Funding is a major obstacle in the fintech evolution. Fintechs
which are funded by banks and many banks chose this an
Services under Retail segment include, savings accounts,
mortgages, personal loans, credit cards etc.,. opportunity as it helps the banks to penetrate deep in
consumer market. Automation of different stages of lending
Growing disposable incomes, increase in literacy levels, with use of fintechs, viz., Lending automation solutions
higher adaptability to technology, Nuclear families are the (Helping to handle credit from application register stage to
driving factors for retail segment growth. finalisation of eligibility and sanction), online loan products
like dial for a loan, credit at a single click, digital document
Simple product nature and widely available opportunities in execution, pre approved personal loan offerings and OTP
the consumer market, making fintech's to enter in to based two factor authentications for e signing the
financial service sector. documents etc., technologies increased customer
experience.
What is the effect of fintech on retail
What are the shortcomings from the
banking segment?
Fintech's started disrupting the retail segment since past few banks side?
years. Some of the traditional banking products becoming Increased competition from Fin Techs, and non traditional
obsolete due to deep penetration of fintech's in to maket.
players: due to increased competition, even banks today
concentrating on technologies. Customers are getting choice
Example:
to compare between two different offerings.
1. Offering of easy EMIs on consumer articles on e-
commerce websites, changed the format of consumer Lack of personalisation: it is an open secret that even today,
loan concept in the traditional banking segment. many of banks follows traditional practices, on the other

28 | 2023 | JANUARY | BANKING FINANCE