Trends in fintech fin have been accelerated by Pandemic locks for the past 2 years. Every institution and market segment starts to digital for their financial solutions. In addition, the adoption of artificial intelligence and other technological advances is made in the financial industry because fintech conducts transactions in our lives faster, easier, and simpler.
Realizing this massive potential in the fintech industry, the central government launched a framework for India which is led digitally in this year’s union budget. This places a special focus on financial digitalization through several assets throughout the segment, driven by technology.
At present, there are trends that appear that cannot be ignored and this will re-shape the way we look and interact with digital assets.
1. Finance embedded
This trend grows quickly and is regulated to appear as the main in 2022. Finance embedded is a smooth payment integration for insurance, loans, debit/credit cards, and investment vehicles with any non-financial platform. It works very comfortable for e-commerce because transactions are faster and there is smooth business facilitation, which plays an important role in increasing customer loyalty. With this new technology, people can get credit and buy with the convenience of clicks, and even use online loans instead of going physically to the bank and waiting for approval.
Don’t be confused with digital banking, Neobanking is a complete place for the bank online without a physical center or representation. With more than 15 Neobank now in India and more than 70 globally, this segment is the path to the next banking revolution. Customers in the Neobanking room grow very large because of easier operations, just choose a digital approach.
3. Interlinkages for better credit access to MSM
Pandemic gives a big encouragement to MSM. To make their functions smooth, the government has decided to connect MSME portals such as Udyam, E-Shram, NCS, and Aseem, expanding the scope of their use. They will work as a portal with a direct database that provides services such as credit facilitation and more. By increasing credit facilitation, this sector will benefit from meeting working capital needs.
4. Blockchain for the Financial Ecosystem
From stock trading to mutual funds to insurance, the company utilizes a large-time blockchain. With machine learning, large data, and AI settings based on newer technology in the digital financial room, blockchain is here for decentralization and to reduce the risk of a large-scale financial crisis. This provides security anonymity, transparency, and transactions for all parties.
5. Green Bonds
To reduce carbon traces and move towards the green transition of financing, the Indian government will float green sovereign bonds. The results of this will be used for public sector projects. This is a new step that has not been running, but we imagine it to gain great popularity in the next 2 years. Green bonds or climate bonds are debt instruments used to raise money on funding projects that will lead to positive impacts on the environment and climate, platforms for this will be driven by technology because India is competing with other global countries where green bonds are the main Efforts to evolution fintech by the international government.