Digital innovations in the personal finance industry and ways to increase the strength of the PF market

In India and the Asia-Pacific region as well, consumer-based markets are embracing digital banking and fintech innovations like never before.

From Sumerian merchants recording livestock sales and other transactions on clay tablets 5,000 years ago to the rise of new-age digital technologies today, financial technology has come a long way.

With the pandemic imposing market concerns of a different kind, people around the world have drifted towards digital banking and fintech adoption. It’s not just safe, convenient, and contactless; the fintech model is also highly effective and efficient in terms of structure and scope.

In India and the Asia-Pacific region as well, consumer-based markets are embracing digital banking and fintech innovations like never before.

According to a proprietary Personal Financial Services Survey conducted by Mckinsey, consumer use of digital banking modules has gained substantial momentum. The survey indicated that nearly nine in 10 people in developed and emerging Asia-Pacific markets are active users of digital banking and are likely to purchase more banking services in the future through a variety of digital avenues.

The share of consumers in emerging Asia-Pacific markets actively using digital banking soared from 54% to 88% in a four-year span between 2017 and 2021. Amid widespread fervent use of modern fintech tools Like e-wallets, the extensive penetration of fintech in the emerging Indo-Pacific region is occurring at a breakneck pace.

This pervasive shift to digital banking happened quickly and was further fueled by several trends, such as the growing use of digital payment modes for a wide range of transactions, such as banking, and the wider use of teleconferences/video calls in face-to-face place. Face-to-face meetings have become the norm during the COVID-19 pandemic.

However, the Survey results suggest that increasing levels of digital adoption are likely to intensify even as the effects of the pandemic subside in the future.

Let’s take a look at some of the major finance-related innovation Trends that will go viral between 2022 and 2025:

The changing role of finance

By automating financial processes, the financial machine will strengthen its commitment to unlocking new business insights, services and solutions. The management of the resources that are placed under financial control will be supported by the sector’s capacity to create and add value.

It goes without saying that such an innovative development will depend on deep, practical knowledge and immaculate customer service. Taking advantage of this pervasive trend, several financial organizations are likely to flourish and become full-service business centers.

New age financial cycles

With finance taking a concurrent path, regular reporting of financial cycles will become outdated and out of place. Conventional financial cycles become less relevant when both actuals and forecasts can be generated based on real-time demand. The old differentiation between operational and analytical data will be erased. However, financial organizations will still have to address extrinsic demands for cyclical information, although outside investors may want more recurring data related to overall performance.

Major leaguers, it is said, will function with a novel mantra: Forget the concept of shutdown. It must be remembered that the companies of the future will not be subject to monthly or quarterly forecasts, since everything will be done in real time. When information is instantly accessible, conventional periodic cycles will disappear, leaving the time, energy and resources needed for people to focus on exploring new actionable insights.

Self-service is the best service

There are a number of seasoned business professionals who are quite skilled and independent when it comes to basic financial principles. However, if they could solve their queries using a digital bot on their smartphones, they would gladly do so. A large part of the activities, ranging from budget inquiries to reporting, etc., will probably be automated over time.

A new league of intelligent agents will conveniently decipher various types of business information based on personalized requirements and aim to provide that data in a timely and proactive manner. As we gradually move into this not-so-distant future, Excel spreadsheets will be replaced by graphic-rich information that is automatically accessible and easy to use.

A new technological frontier

Amid the rise of newer work models, the fusion of robotics and advanced algorithms with a diversified fintech workforce will unlock invisible borders. Companies will continue to assess the merits of automation versus onshore and offshore functions. While automation offers a new lever cost management, financial organizations will have the opportunity to monitor and improve their existing organizational structure. The introduction of Finance-as-a-service is set to generate enormous traction that will transcend mid-market organizations.

Conclution

The future of the financial industry is in the hands of automation and innovation. With the pandemic dictating the contemporary terms of financial engagement, the need to embrace mainstream digitization and technological optimization across all financial spectrums, be it banking, insurance or payment transactions, will become absolute imperatives to function in the brave new world.

by Rohit Garg, CEO and Co-Founder of SmartCoin

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