Four Upcoming Trends of the Indian Fintech Industry in 2023!

Four Upcoming Trends of the Indian Fintech Industry in 2023!

Authored by: Mohammed Mansoor    Reading Time: 03 min 30 sec

The FinTech sector is booming, with traditional financial institutions expanding their investments in digital and more sophisticated financial technologies to supply financial services with enhanced turnaround time and efficiency.

In addition, customers expect digital-first banking services for account opening, payments, and loan processing, resulting in stringent regulatory upgrades and government involvement.

Based on the report by Market Data Forecast, the global market for financial technology is expected to reach around $324 billion in value by 2026.

This blog provides a detailed list of the trends that will shape and define the future of Indian FinTech industry.

Rise of Digital Banking and Cashless Transaction

Traditional banks and financial institutions directly compete to integrate their products and services into digital banking and offer seamless user experiences.

With the unprecedented emergence of digital-first banks and Neo-banks, traditional banks and financial institutions rush to establish more streamlined and effective onboarding processes to offer customers immediate access to their products and services.

i2A enables the ecosystem to function via a standard set of APIs to promote the secure, seamless, and consent-based transfer of a variety of financial information between FIPs and FIUs.

The Explosion of Embedded Finance

Embedded finance or embedded banking refers to integrating financial services and solutions into a non-financial platform. Several banks have become service providers to non-bank and non-financial companies to create a customer experience and service proposition that includes financial services.

Customers can receive financial services provided by banks directly from the platform. This involves quicker payments, leading to faster checkout and settlement process, providing an unmatched payment experience.

Last year witnessed the rise of Buy-Now-Pay-Later companies like Simpl and Postpe, which offer convenient payments for online shopping. As more banks and financial institutions look to serve non-banks and non-financial enterprises, this trend will develop tremendously in 2023.

The Era of Decentralization

Most banking, lending, and trading functions are handled and governed by centralised systems operated by governing bodies and gatekeepers.

Decentralized finance is an emerging system that employs blockchain technologies to replicate financial services, notably Ethereum and smart contracts. With DeFi, users can transfer, lend, invest, trade, or save, without the authorization of organizations whose interests may differ from their own.

Open Banking

A bank’s monopoly on customer information has always been unbreakable. Unauthorized access to this information would cause tangible, negative financial repercussions and harms the bank’s reputation and goodwill.

Open Banking refers to an online banking system that grants unrestricted access to a customer’s financial information or bank accounts for third-party providers with the customer’s explicit consent.

The customer’s data can be accessible by any bank with the customer’s consent, allowing banks to deliver hyper-personalized products and services depending on the customer’s data. This fosters competition in the marketplace.

The Indian government and commercial enterprises have collaborated to establish a hybrid open banking system via the Account Aggregator ecosystem, under the RBI’s regulatory authority. As part of the ecosystem, a significant number of private banks are forming alliances with FinTech firms in order to deliver better and higher-quality services to their consumers. This is fuelling the growth of FinTech in India.

iSolve’s Role on Financial Digital Transformation

According to the Juniper research, traditional banks have lost a lot of market share to digital-only banks since digital-only banks offer better user experiences and more focused USPs. Also, the Indian fintech industry predicted number the digital banking users to reach 3.6 billion by 2024, up from 2.4 billion in 2020, representing a 54% rise.

iSolve technologies is a Global Business Transformation firm that assists BFSI, NBFC, and other financial services with our best-in-class Reg Tech application platform.

Our solutions cover the entire lending lifecycle, from onboarding to due diligence. It enables systemic fraud prevention, risk management, compliance, and automation via superior data engineering and powerful tech applications. 

Write to us at business@isolve.global  or call us at +91 78240 78240 to connect with the sales team at iSolve.

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