Posted by: CIEL on Tue, Dec 12th, 2017
Top Trends Shaping the BFSI Sector in India
Remember standing in a queue with your chequebook to withdraw some cash at the bank? Or the excitement when ATMs came into the picture? Then remember standing in long queues (and no, we’re not talking about the demonetisation fiasco) to withdraw cash from ATMs? As recent as that was, ATMs are mostly empty as people have started to go cashless. The entire financial services sector is changing by leaps and bounds, almost being entirely reimagined to keep up with today’s fast-paced lifestyle.
These massive changes have been mainly brought about by digitisation, and with it, changing consumer demands. FinTech or Financial Services Technology is changing the way we manage our money with a rapidity that is probably going to look incredible in hindsight. FinTech evidently holds large implications for the Banking, Financial Services and Insurance (BFSI) sector in India along with the rest of the world.
We’ve listed some of the emerging trends in the Indian banking and the latest developments in the BFSI sector today.
1. The Digital Revolution
Until fairly recently everyone banked with the bank with a branch that was just around the corner or the one that had served one’s ancestors faithfully in the past, with the bank manager acting as an extended part of the family. The growth of competition in the market along with the large reach of online marketing has made even the most traditional of banks change the way they reach out to their consumers.
Digital marketing technology for the financial services sector allows banks and credit unions to effectively reach a large audience with advertisements catering to the specific needs of a consumer on a variety of manners from websites to mobile applications and even social media. More effective than a poster in a local branch, don’t you agree?
2. Instantaneous Transactions
The days of waiting for a deposited cheque to clear and mounds of paperwork are fast becoming passé with online transactions gaining popularity and it seems to go hand in hand with today’s impatient society. Digital, cashless transactions have done away with the need to carry around wads of cash while shopping or going to the movies. Cards are easier to use than ever before with most not even requiring a customer’s signature. Businesses have supported this trend well, a simple example being restaurants agreeing to split a food bill between customers at the same table via card payments. The rise of mobile wallets has spurred this trend on in India with even many a vegetable seller taking payments this way.
FinTech is continually developing new methods to make customer experiences smoother and safer keeping financial service providers on the cutting edge of digital technology today.
3. Inculcating a Do-it-Yourself Culture
The financial industry is also trending towards a do-it-yourself culture. Buying, selling or trading valuables can be done with ease through online technologies. This also eliminates the need for a middle man ensuring maximum profits as no or minimal commissions need to be paid.
4. Enhanced Security
It goes without saying that it is imperative that all transactions and associated details in the BFSI sector require the highest security possible. Going digital allows financial institutions to remain visible while still keeping customer data secure. Continuous development of technology allows for continuous scanning and detection of any external threats. Cashless transactions and the virtual elimination of paperwork also reduce chances of fraudulent transactions keeping dealings transparent and above-board.
The Banking and Financial Services Industry in India is keeping up with the latest developments in technology admirably and one can only see this trend growing in the future. More and more financial services institutions are investing in Financial Technology to remain in the game helping make customer experiences seamless and relevant like never before.
Are we ready to go completely cashless? Not yet – but we are definitely heading in the right direction!
The Centre for Investment Learning and Education has a number of different courses and NISM certification trainings to help you follow your dream career in the world of finance, investment banking and insurance. Contact us to know more!