India’s Leading BFSI & FinTech Companies 2024

[ FINTECH SECTOR OVERVIEW ] India’s Leading BFSI and FinTech Companies 2024 59 FINTECH GAME CHANGERS INCLUSIVE BFSI MODELS FinTech have contributed immensely in bridging the financial inclusion gap. With the use of open banking, and API, FinTech lenders can access alternative sources of data from third-party providers and digital profiles. This will help them to make accurate assessment of creditworthiness of borrowers enabling them to serve the customer segments that could not be tapped by traditional financial institutions. As a result, there is likely to be rise in digital lending market places and Buy Now, Pay Later (BNPL) model in the coming years. TECH TSUNAMI Technologies that will be shaping the future of FinTech in next five years will be AI, cloud computing, blockchain, IoT, low code/no code, open source & SaaS, open APIs, robotics, and ML. Further, Banking as a Service (BaaS) and embedded finance will unlock new opportunities for FinTechs. The sector will also be keen on adding AI-fueled financial advisors that offer highly personalised and predictive insights for users. There will be extensive AI integration in areas like creditworthiness assessment, risk evaluation and robo-advisory service. NEXT-GEN CUSTOMER EXPERIENCE There is expected to be an increased use of no code/low code by FinTech to accelerate and enhance the client onboarding process. Besides the increased use of open API will make the aspect of personal financing easier. CYBERSECURITY REVOLUTION FinTechs will be more focused on integration of cloud computing as it will help enhance security with the help of automated and embedded security controls. FinTech will be increasingly using cloud computing to store and manage data. With cyber crimes getting more sophisticated, use of quantum algorithms will help FinTechs in discovering abnormalities and detect fraud in massive volumes of financial data in real-time. It will also help make financial transactions hacker-resistant and improve risk management models. REGULATORY SANDBOXES In 2023, the RBI allowed 6 entities to test their FinTech products to prevent and mitigate financial frauds under the RBI’s regulatory sandbox scheme. Dun & Bradstreet