Digital Innovations in the Personal Finance Industry and Ways to Increase FP Market Strength

In India and the Asia-Pacific region too, consumer-driven markets are embracing digital banking and fintech innovations like never before.

From the Sumerian merchants recording the sale of livestock and other transactions on clay tablets 5,000 years ago to the rise of new era digital technologies today, financial technology has come a long way.

With the pandemic imposing market apprehensions of a different kind, people around the world have drifted towards embracing digital banking and fintech. It’s not only safe, convenient and contactless; the fintech model is also very effective and efficient in terms of structure and scope.

In India and the Asia-Pacific region too, consumer-driven markets are embracing digital banking and fintech innovations like never before.

According to a proprietary personal financial services survey conducted by Mckinsey, consumer use of digital banking modules has gained tremendous momentum. The survey found that almost nine out of ten people in emerging and developed Asia-Pacific markets are active users of digital banking and are likely to obtain other banking services in the future through of a range of digital channels.

The share of consumers in emerging Asia-Pacific markets actively using digital banking services has risen sharply from 54% to 88% in four years between 2017 and 2021. Extensive fintech permeation in the emerging Indo-Pacific region follows at breakneck speed.

This pervasive shift towards digital banking has happened in a rapid manner and has been further instrumented by various trends such as the increasing use of digital payment methods for a wide range of transactions such as banking, and the use broader teleconferencing/video calls instead of face-to-face calls. -Face-to-face meetings have become the norm during the COVID-19 pandemic.

However, the survey results indicate that increasing levels of digital adoption are expected to intensify even as the effects of the pandemic abate in the future.

Let’s look at some of the major finance-related issues innovation trends set to go viral from 2022 to 2025:

The changing role of finance

With the automation of financial processes, the financial machinery will strengthen its commitment to unlocking new insights, services and business solutions. The management of resources placed under financial control will be based on the sector’s capacity to create and add value.

Needless to say, such groundbreaking development will depend on deep, actionable insights and impeccable customer service. Taking advantage of this diligent trend, many financial organizations are likely to blossom into full-service business centers.

New Age Financial Cycles

With finance taking a concurrent path, periodic reporting on financial cycles will become obsolete and out of place. Conventional financial cycles become less relevant when actuals and forecasts can be generated based on real-time demand. The age-old differentiation between operational and analytical data will be erased. However, financial organizations will still need to respond to extrinsic demands for cyclical information, although external investors may want more recurring data related to overall performance.

They say major league players will operate with a new mantra: Forget the fence concept. It must be remembered that the companies of the future will no longer be subject to monthly or quarterly forecasts because everything will take place in real time. When information is instantly accessible, conventional periodic cycles will disappear, leaving the time, energy and resources needed for people to focus on exploring new, actionable insights.

Self-service is the best service

There are a number of seasoned business professionals who are quite knowledgeable and independent when it comes to basic financial principles. However, if they could solve their queries by a digital bot on their smartphones, they would gladly do so. A large part of the activities ranging from budget queries to report generation etc. will likely be automated over time.

A new league of intelligent agents will quickly decipher different types of business information based on personalized requirements and aim to deliver this data in a timely and proactive manner. As we move further into this not-too-distant future, Excel spreadsheets will be replaced by graphically rich information that is automatically accessible and user-friendly.

A new technological frontier

Amid the rise of new models of work, the fusion of robotics and advanced algorithms with a diverse fintech workforce will open up invisible frontiers. Companies will continue to weigh the merits of automation against onshore and offshore functions. As automation offers new cost management leverage, finance organizations will have the ability to monitor and improve their existing organizational structure. The introduction of Finance-as-a-service is expected to generate huge traction that will transcend middle market organizations.

Conclusion

The future of the financial industry is in the hands of automation and innovation. With the pandemic dictating the contemporary conditions of financial engagement, the need to embrace global digitalization and technological optimization in all financial domains, whether banking, insurance or payment transactions, will become absolute imperatives to operate in the best of all possible worlds.

by, Rohit Garg, CEO and Co-Founder, SmartCoin

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