How are New Technologies Disrupting the Fintech Space in India?

Technologies play a massive role when it comes to innovation and moving ahead of the curve. We have witnessed how the world has changed in the last 20 years, and through that, one can make it clear how fast the adoption happened and how it has changed the world around us. 

There is a concept called Moore’s Law implied in the semiconductor industry. It states that the processing power of the chips will increase as the material gets smaller every two years. Now, as we witness the change in technology, it’s quite evident that the world is changing, and industries are also evolving, coming up with new technologies and solutions. 

In this blog, we will discuss some of the common patterns and technologies that are evolving in the financial space and are changing the way we used to think about fintech options. 

1. Use of AI in Every Financial Product 

AI is now becoming an omnipresent phenomenon, a tool for human beings to complete repetitive tasks and excel in that. In the current phase, the use of artificial intelligence is evident is necessary as it can be embedded in any financial product to analyze data and provide a research driven report fast. 

The accuracy of the AI models is still an issue in some places, however, with the large volume of data, it’s now evident that one can get the benefit of the product real soon. At the current time, customer profiling for loan sanctions is done by AI in some place or at least the companies are using it to train the model. 

Certain DSA apps can provide customized lender reports and can connect with an agent when a person requires them in the final stage. The basic data collection process can be done through the use of AI driven model. 

2. Blockchain to Change the Financial Protocols 

Several blockchain protocols are at the crux of altering the regular method of bookkeeping in finance. The rise of Bitcoin has emerged from the financial collapse of 2008, where everyone has witnessed the loopholes of large banking institutions. 

With the loss of the traditional banking system comes the ledger system of the blockchain that can be used to keep records of each transaction, and the peer-to-peer connection allows the system to operate democratically and efficiently. Banks and other fintech companies have adopted the blockchain model to keep a wide variety of data in the system, and through that, they can keep track of important accounts. 

3. Cloud Computing for Better Data Allocation and Recovery 

The role of cloud computing is also necessary through that asset. One can find the right data centers where an institution can keep all its data without the headache of managing their company’s server. 

With the help of cloud computing, a company can make a mark by keeping separate data centers for the bank or the company, and through that, it can make a mark in the system. Financial institutions can now easily access the old customer’s data at a fraction of a second as they have the entire database that is essential for providing customized financial help to the customer. 

4. Introduction of IoT in Finance 

Finance is also an industry that will be impacted by IoT services. With the help of IoT, a financial institute can communicate with a wide customer base and create digitized products for them. 

In providing loans, there is a requirement of doing KYC and for that, devices like RFID can be used, which have the technology of IoT where the record can be immediately transferred to the main dataset. A bank personnel or a personal loan DSA, when going for a field visit, can use this tech that is connected to the servers, hence increasing the accuracy of data and reducing the loss of it. 

5. Open Source and SaaS Software for Better Optimization

Finally, the widespread use of SaaS tools by finance companies for data keeping and creating models gives them an ultimate edge. For example, a finance company can now depend on SaaS software to automate or ease out some of the core operations. 

These are some of the technological advancements in the fintech space that are changing the services that institutions provide.