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Deepak Kinger

Deepak Atmaram Kinger is Vice President leading the Banking and Financial Services business for Middle East and Asia Pacific at Virtusa Corp., a well-known information technology services provider with a global reach. He has over 19 years of international experience in financial services across Retail, Commercial Banking and Capital Markets.

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FinTech Trends That Will Shape The Industry In 2018

2018 will be a pivotal year for cryptocurrencies in India. While the RBI has continued to maintain that cryptocurrencies like Bitcoin and Litecoin are illegal, there has been a mad rush to invest in these especially towards the back half of 2017.

Fintech

FinTech in India is in high growth mode with investments in FintTech startups topping $1.5bn in 2017. The coming year promises to exceed that as the industry is at an inflection point. Here’s a little bit of crystal ball gazing on what the FinTech future looks like.

  • Policy push will continue to drive Innovation:

The Government of India and the RBI have already laid a solid foundation for a digital financial infrastructure in India. The JanDhan Yojana, Aadhar, RuPay network, Unified Payments Interface (UPI), Bharat Bill Payment System (BBPS), BHIM (Bharat Interface for Money) are all steps in this direction. Demonetization and the recent directive to link Aadhar with every financial relationship a person has will act as huge catalysts in furthering the digital push and driving Innovation.

The ‘India Stack’ set of APIs for presence-less, paperless, and cashless service delivery will become the backbone for ensuring the new digital economy works seamlessly.

  • Collaboration will be king:

Banks will increasingly start looking at startups in the FinTech, RegTech and InsurTech space as their extended innovation arms with a view to collaborate with them. In addition, independent forums such as StartupBootcamp FinTech-Mumbai accelerator program will continue to provide a platform for FinTech, Banks and VCs to come together.

  • Payments transformation will see continued acceleration:

The BharatQR code, a unique interoperable payment acceptance solution developed by the NPCI (National Payments Corporation of India), Mastercard and Visa will enable point of sale (POS) transactions to be made more seamlessly. Along with banks, payment wallets like Paytm and MobiKwik will continue to make huge investments to leverage this new standard. We are also likely to see emergence of new “service layer apps” that get built on top of the BharatQR code solution.

  • Bitcoin and Cryptocurrencies could either explode or implode:

2018 will be a pivotal year for cryptocurrencies in India. While the RBI has continued to maintain that cryptocurrencies like Bitcoin and Litecoin are illegal, there has been a mad rush to invest in these especially towards the back half of 2017. There will be new normal created, likely in the form of some regulation by the RBI, that will help provide some direction. India will also likely also see its first ICO (Initial Coin Offering) in the form of Laxmicoin.

  • Technology view:

Looking at things from a technology lens, the following are some of the areas where bulk of the technology investments will be made in 2018:

  • Blockchain:

NITI Aayog has started work on building IndiaChain as the backbone for blockchain transactions in the country and it is likely to be linked to IndiaStack. This will result in digital contracts, seamless transactions and reduced fraud. Banks such as ICICI and Axis Bank that have already taken baby steps in Blockchain implementations will have the opportunity to pivot using IndiaChain and lead the way in new innovative services.  

Artificial Intelligence (AI) and Machine Learning (ML):

Startups in this space are likely to well as adoption by banks and other financial institutions rises in AI, ML, NLP (Natural Language Processing) and NLG (Natural Language Generation). These will be especially useful in areas like KYC, Reconcilations and Operations transformation. Also, new-age intelligent chatbots that leverage these technologies for improved customer service are likely to be rolled out.

Voice as an alternative channel: Google Home and Amazon Alexa will see adoption rise in India. This will mean banks and FinTech players will need to build out their omni-channel capabilities to also include voice.

India’s FinTech journey is set to get into high gear in 2018 and beyond !

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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