Revolutionising the Indian financial sector with future-proof tech – Times of India
The year 2023 has begun on a challenging note, with inflationary pressures and a range of global issues impacting the Indian economy. However, India has demonstrated its resilience in the face of these economic difficulties. While businesses may face unique challenges, it is important to acknowledge that new opportunities are emerging for a country that is positioning itself as a leader in technology.
In today’s rapidly evolving digital landscape, Indian companies have the opportunity to make bold moves and emerge stronger by embracing the latest technologies. Digitalisation has become deeply ingrained in many aspects of daily life, with banking and finance leading the pack. The convenience and ease of use of digital technologies have made it possible for customers to complete transactions, pay bills, and access statements with just a few taps on their smartphones. The use of emerging technologies has also enabled the digitization of customer identification (KYC) processes and management of records through sophisticated online systems. However, this is just the beginning of the potential that digital technologies offer for improving the end-customer experience.
Innovations such as embedded experiences, digital assets, decentralized finance, and others are rapidly gaining traction in the financial ecosystem. This highlights the need for companies to stay informed about the latest technology trends in order to offer higher value to customers and build profitable business models. By keeping abreast of these innovative technologies, businesses can ensure that they are well-positioned to capitalize on new opportunities and achieve success in today’s fast-paced digital landscape. Let’s take a closer look at some of the top future-proof technologies that businesses should be aware of to deliver their best performance.
ESG: Environmental, Social, and Governance is a term that has recently gained attention with the Indian business community. Many companies are now focusing on developing strategies to manage their ESG responsibilities. With the implementation of regulatory policies and compliance requirements, ESG has become an important topic of discussion among businesses. Industry experts believe that the adoption of appropriate ESG technologies can benefit companies by providing opportunities for sustainability, improved social policies, and enhanced employer branding. These technologies can help companies to measure and report on their ESG performance, engage stakeholders, and manage risks. For example, companies can use technology to track their carbon footprint and implement strategies to reduce it. They can also use technology to monitor and improve diversity and inclusion within their workplace, and to transparently communicate their policies and performance on ESG issues to stakeholders.
Embedded finance: Embedded finance is an innovative concept that enables non-financial platforms to integrate financial services such as payments, loans, insurance, debit cards, and investment instruments. For e-commerce businesses, embedded finance is particularly beneficial as it increases customer loyalty by streamlining transactions. In the past, customers would have to apply for loans at a bank, go through an evaluation process, and wait for approval. With embedded finance, customers can now make purchases with just a few clicks on a store’s website, resulting in a more convenient and efficient shopping experience. Embedded finance also allows e-commerce businesses to offer a wide range of financial services to their customers without the need for them to leave the website, which results in higher conversion rates and increased revenue. It also allows for a more personalized experience for the customers as the financial products can be tailored to the specific needs of each customer.
Decentralized finance (DeFi): DeFi enables the creation of financial applications on a decentralized, blockchain-based platform. It eliminates the need for intermediaries by automatically generating deterministic rules for financial transactions. This allows users to trade financial products, obtain loans, and make investments without relying on centralized financial entities. DeFi utilizes deterministic smart contracts, which remove counterparty risk and the costs associated with intermediaries. This also increases transparency and market efficiency. DeFi is disrupting traditional value chains and institutions and creating new opportunities in the financial sector. As financial regulations evolve, DeFi is expected to experience significant growth.
Internet of Things (IoT): The Internet of Things (IoT) is a state-of-the-art technology framework that enables interconnected devices to collect real-time data, transmit it to the cloud for processing and analysis, and respond to events in real-time. IoT has significant implications for the banking and finance sector as it facilitates the digital automation of key processes, improves data collection and processing, and enhances overall security. By leveraging IoT-enabled solutions, organizations in the BFSI (Banking, Financial Services, and Insurance) industry can optimize their services and operations and provide a cutting-edge customer experience.
5G: The fifth-generation mobile network, often known as 5G, is a cutting-edge wireless technology designed to provide low-latency, reliable, and high-capacity connections. The implementation of 5G networks can significantly benefit the banking industry by enabling improved efficiency in websites and apps. This is due in part to the increased speed and capacity of 5G networks, as well as the trend towards storing banking data in the cloud. Additionally, 5G networks can facilitate faster and more seamless payments, further driving the adoption of digital payments among customers and merchants. Transactions will not be hindered by lack of bandwidth or high traffic on the bank’s channels. By extending services to wearables, virtual reality (VR), and IoT devices, banks can also aim to create a more integrated omnichannel experience, enabling the creation of more personalized services for their customers.
In today’s business landscape, it is essential for organizations to stay abreast of industry trends and advancements in technology. This is particularly true for large organizations, as staying current with technology advancements is crucial for maintaining a competitive edge. The implementation of transformative technologies can open new avenues for growth, as well as enhance business-customer relationships by delivering increased value to customers. In order to remain successful, companies must be flexible and adaptable, and technology plays a critical role in their transformation. The right technology can streamline processes, improve efficiency, and enable businesses to quickly adapt to market dynamics. Additionally, staying current with technology advancements can help companies maintain relevance and appeal to customers.
Views expressed above are the author’s own.
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