EY Tech Trends Chapter VIII: Top FinTech trends in 2023 – Ernst & Young
The pandemic has revolutionized the insurance sector with tech companies partnering with insurance companies to bring innovations in products and the particular way they are distributed to customers. Leveraging AI, machine learning, deep studying, artificial neural networks, blockchain and IoT, the insurance industry has shifted from detecting and repairing work to predicting and preventing mode. Using data from every source, including geo-location plus activity tracker wearables, the companies are fine-tuning the particular premiums to make them more competitive. Embedded insurance, the digital real-time bundling, and selling of insurance during purchase plus sachet covers, or bite-sized insurance that serves specific needs of customers for a shorter duration, are helping insurers reach out in order to a wider audience.
InsurTech startup platforms also digitize claim processes through solutions such as video and mobile options, using intelligent bots, Robot Process Automation and Natural Language Processing. For instance, the general insurance company has partnered with a technology start-up and rolled out automated car inspections and claims assessments making use of AI. Customers can capture photos or videos of a car for policy renewals and claim assessments, allowing insurance plus automotive players to reduce more than 90% of the cost of inspection and the time required for home inspections. With metaverse opportunities emerging, lnsurTech players are now enabling cyber and digital asset protection coverage. There are a few insurers that offer cyber insurance coverage that will protects firms against online risks like malware, phishing, identity theft, cyberbullying, and IT theft and the customers can customize their plans according to their needs.
Alternative investment platforms
With easier digital onboarding of shoppers plus cost-effective access to expense platforms, new-age customers and HNIs are using alternative investment decision platforms with regard to wealth creation. The alternative investment solution ecosystem, which includes data analytics providers, insights providers, B2B software answer providers plus online systems, supports clients in taking informed decisions, especially inside non-traditional areas for example tokenized real estate, digital gold, startups and non-fungible tokens (NFTs).
Banks and financial institutions are currently exploring partnership potential with alternative platforms. However, such tie-ups are still in the particular early stages in India, along with most customers in the HNI category. That said, with SEBI updating and reviewing regulations regarding WealthTech systems, India will become a matured alternative purchase market, which is expected to touch US$230 billion by 2030 from the current US$20 billion dollars in assets under management (AUM).
By employing tools including robotics, ML, and automated information analysis intended for better credit assessments, the digital lending ecosystem that is filling India’s credit gap among the low-income group plus small businesses is now at a crossroads. Digital lenders have upgraded their technologies with unified dashboards and analytics, and are using various ML-based models for fine-tuning their products. Customer acquisition plus onboarding procedures, including application processing, applicant assessment, screening, servicing, collection, and analysis, are getting end-to-end automated.
With the launch associated with government-backed electronic public goods like the Account Aggregator(AA), an RBI-regulated entity having a good NBFC-AA license that helps individuals in accessing and sharing information digitally from one financial institution to another, and Open Credit Enablement Network(OCEN) that connects loan service providers and lenders, the particular digital financing space will now further help India move toward monetary inclusion. AA and OCEN will not only enable disburse loans in smaller amounts but also help build innovative economic credit products on scale. In the next couple of years, by interlinking with existing platforms like Aadhaar plus UPI, these platforms will revolutionize the future of digital lending.
With digitalization and FinTech paving the paths of financial inclusion of the underserved population, financial education will be the next step in the FinTech revolution. This will not only lead to the development of hyper-personalized products but additionally help customers choose appropriate financial services, which will improve the overall financial health of the populace.