Page 29 - Banking Finance December 2022

ARTICLE

hand Fin Tech start-ups capitalized on the technological software developments and changing the face of financial
innovation. As a result of which banks lose customer sector.
segment, especially those who are happy with Fin Techs.
As the services are offered at the door steps, customer may
Lack of security measures: is a serious concern. Even in perceive it as a good one even though the services are costly.
today's open online banking environment, threats of cyber Furthermore, due to use of technology, most of the services
security breaches are immense. It has an impact in sharing are cheaper than services offered by banks.
of data during the processes of innovative technology
implementation through outside agencies. Opportunity cost, Turnaround Time in receiving the product
or service, will play lead role in decision making process at
Possibility of Banks & Fin Tech consumer end.

partnership:
Some of the above listed Fin Techs, have taken larger share
If banks and Fin Techs partner either by way of joint venture in fund transfer ecosystem, and other are leading in
or venture in an alternative business, providing personal and even MSME lending.
1. Safe and secure transactions can take place
At the end!
2. Tranctions happen at an ease
No doubt, technology will definitely change, users
3. Regulatory support and RBIs incentives for increased
experience in availing any kind of services, and financial
customers experience are some of the expectations.
services are not exempted from that. Technology helps to
fill up the loop holes in the existing practices. In this paper
Leading Fin Techs in Indian Market:
we have seen the journey of Fin Techs, from 1.0 to 3.5, how
Instamojo
rapidly the technological innovations changed existing
Razorpay practices. Start ups in Fin Techs posed so many challenges
before traditional banks even questioning existence of banks.
Paytm
Due to regulatory concerns and shortage of funds for
Policybazar
establishments of Fin Techs, they depend more on Banks.
Shiksha Finance Tie up between banks and fintechs will solve problems of
both.
Pine Labs
Zest money
Banks and big tech giants may decide to expand
ePay later are some of the leading Fin Techs in Indian internationally not via a universal bank model but by
market. selecting the most efficient and streamlined vertical
services.
Impact of Fintech on Retail credit of
For better customer experience and safety, fintech and banks
traditional banks:
act as two sides of a coin in the days to come.
Customer centric products launched by using updated and
modern technology is the main activity of a Fintech. It is 'Sustained growth depends on how broadly you define your
finding loop holes in the lending activity by the Retail banks business- and how carefully you gauge your customer needs'-
and coming up with solutions. Big data and new analytics (Lines by Theodore Levitt, professor, Harward Business
capabilities are needed to extract value and personalize the School in his article- Marketing Myopia).
customer segmentation and service in all unbundled
segments. Most often by using artificial intelligence and Financial Institutions must and should tap the opportunities
machine learning techniques even they try to read emotions unveiled by Fintechs to gauge the customer needs, for
of consumers. This is creating extraordinary capabilities in mutual benefit & sustainable existence.

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