India’s Leading BFSI Companies 2020

LIV UPI has also emerged as one of the most popular forms of digital payments. UPI, which allows users to transfer money in real-time across multiple bank accounts without revealing details of one’s bank account, is a simple, cost-effective and reliable mobile-based payments system. Backed by a positive thrust from the government, many financial institutions and players have already started implementing emerging technology into their core processes not only to expand reach within untapped territories but also to provide seamless services to their existing customer base. Opening of new bank accounts is more convenient now and can be done instantly through hand-held devices with customer on-boarding being done via apps and even missed calls. E-lobbies, cardless cash withdrawals, contactless payment cards and digital cards are now the new norm. In the lending space, FinTech players are employing advanced analytical tools along with alternative credit scoring models to draw out more holistic assessment of borrower’s credit worthiness. Additionally, machine learning is being used in combination with other innovative data points to assess customer creditworthiness as well as to predict the appropriate size of loan suitable for a particular customer. Non-banking players as well as small financial institutions are taking financial services to remote areas and across tier 2 to 6 towns through white label ATMs. These interoperable platforms, which serve as banking touch points, have brought the concept of ‘anytime, anywhere banking’ to users in distant geographies, thus contributing to greater financial inclusion. With a view to provide seamless connectivity to commuters, National CommonMobility Card (NCMC) has been introduced as one card for both transit as well as retail payments. Many private players in collaboration with banks are also providing open loop card-based ticketing system along with toll and transit solutions for metros, buses, suburban railways and electronic toll collection. In the lending space, FinTech lending platforms are tying up with consumer durables players and other retailers, offering low-interest credit to the latter’s customers in a bid to tap the new-to-credit customers, who have remained outside the formal credit channels due to their negligible data footprint. FinTech players as well as non-banking financial institutions, which have higher costs of raising funds as compared with banks, are offering credit even to individuals with lower credit scores with a view to widen their customer base. This could partly be because of the fact that new-age lenders look for data other than credit scores to decide credibility –social media activity, smart-phone owned by the borrower, etc. With internet and smart-phone penetration increasing exponentially further across semi-urban and rural areas, customers are entering the financial services ecosystem in large numbers. However, greater financial inclusivity is also bringing to the fore new concerns such as customer data protection, security of transactions and prevention of default and frauds. Big data and analytics can be very helpful in mitigating risks and preventing financial frauds and crimes. Through big data analytics, companies can identify patterns and behaviors, collect data for identification of frauds before it actually happens, and use that information to build appropriate measures and checks for prevention. Using historical data, predictive models are developed and are later co-related to real-time events for fraud identification. Data analysis in combination with behavioral analytics and real-time feedback is helpful in identifying abnormal behaviors, thereby signaling security breaches or fraudulent activities. These analytical tools can also be helpful in detecting frauds and crimes arising within the organization. Dun & Bradstreet