India’s Leading BFSI Companies 2020

LII India’s financial sector has undergone unprecedented changes over the last few decades, with technology playing a key role in its transformation. Whether it is the automated teller machines (ATM), online banking services or mobile banking and credit card services, adoption of technology has resulted in enhanced customer service, convenience, reduced costs and overall streamlining of processes in the delivery of financial products and services. Today, emerging technology applications in the sphere of machine learning, big data analytics, cloud computing, block-chain technology and artificial intelligence are bringing about sweeping changes by modifying the way financial intermediation takes place or leads to disintermediation. Across the world, innovative technology has emerged as a transformative force with potential benefits in terms of improved efficiency, risk mitigation and financial inclusion. A wide range of players from start-up companies to established tech giants as well as traditional players are adopting innovative technologies to improve business processes and services. Regulatory bodies across the world have taken a proactive approach in enabling financial innovation through various policy initiatives. According to Financial Stability Board, ‘FinTech’ refers to technology-enabled innovation in the financial services segment and could result in ‘new business models, applications, processes or products with an associatedmaterial effect on the provision of financial services.’ TheWorld Economic Forum (WEF) describes FinTech as ‘the use of technology and innovative business models in financial services’. Digital wallets, block technology, peer-to-peer (P2P) lending platforms, crowd-funding, smart contracts, e-aggregators, robo advisors are some of the main FinTech applications currently in use in marketplace. These innovations hold the potential to bring about efficiency improvements and cost reductions, and enhance the overall user experience. Digital wallets facilitate mobile, online and offline payments, providing ease of usage as well as time and cost benefits as compared with traditional payment modes. Crowd-funding connects multiple investors/donors to recipients through internet based platforms, and is done for certain specific objective such as for funding a project, social cause or to raise equity. Equity crowd-funding is, however, banned in India. P2P lending or marketplace lending connects lenders to borrowers facilitating various forms of credit including secured and unsecured credit as well as non-loan debt funding. Hybrid cloud technology is also being deployed extensively across the financial services industry even as players feel the heat to streamline operations while delivering an enhanced customer experience in the backdrop of issues such as regulatory compliance, security concerns and data privacy. Overview: Technology Disruptions - Spearheading Financial Inclusion for Inclusive Growth Dun & Bradstreet