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Focusing on financial inclusion is critical for India as it will have a multiplier effect on the economy, ultimately helping India achieve its goal of becoming a USD 5 trillion economy.
Explore how your enterprise can leverage the opportunity with Vivek Belgavi, Partner & Leader - Fintech, PwC India and Sanjeev Krishan, Chairperson, PwC in India.
Powered by the robust growth of the Indian economy, coupled with a burgeoning middle and high-income class and proven digital infrastructure, India has emerged as a global hotspot for investment and consumer activity.
FinTechs may partner with banks to contribute to the origination and underwriting processes for providing affordable loans.
India is witnessing a FinTech revolution, driven by the rapid adoption of digital technologies, emergence of innovative business models, and growing demand for convenient and affordable financial services.
Digitising supply chain finance – opportunities amidst constraints
Digital lending involves the leverage digital platforms to offer lending products and services to individuals, families, groups, MSMEs, and businesses. These loans may be underwritten digitally, distributed physically or digitally as well as collected through digital or physical means. The digital lending solutions leverages analytics, automation, blockchain and AI/ML for customer profiling, targeting, onboarding, document processing, underwriting, risk assessment, and disbursement of credit, thereby prociding faster processing, improved accessibility, and affordability.
Trends
The insurance sector in India stands on the brink of a transformative era and is poised to leverage technological advancements.
Sharing potential future trends and expectations
The micro, small and medium enterprise (MSME) sector forms the backbone of India’s economic structure, accounting for 29% of the country’s gross domestic product (GDP) and 49% of its exports.
1 June 2024
Bombay chamber of commerce (Unveiling of position paper 'Insurance for All by 2047: The Role of Distribution Models, Products, Technology, and Ecosystem Players')
1 June 2023
GFF Panel on - "Shaping the future of embedded finance - Strategies, Partnerships, and future trends", moderated by Vivek Belgavi. PwC report - 'Embedded finance: A strategic outlook' was also lauched at the end of the session.
8 August 2024
PwC was a knowledge partner for 2nd Assocham India International FinTech festival, New Delhi. 10+ PwC FS sector sector partners and leaders moderated various sessions themed around FinTech ecosystem.
8 August 2023
CII - B20 - Taskforce on financial inclusion and econonomic empowerpoint. Launch of policypapaer.
1 January 2023
Participation in the Global Business Summit 2024 where our FinTech, Alliances and Ecosystems Leader, Vivek Belgavi, explored key innovations and strategies driving credit access for small and medium-sized enterprises (SMEs) and mid-corporates with his fellow experts.
1 January 2024
Conducted a knowledge-sharing session at the National Institute of Banking Management (NIBM), Pune, with bankers from across the nation on the role of bank and FinTech partnerships in increasing financial inclusion.
1 February 2024
IAMAI India digital summit 2024, where Vivek moderated a key session on 'Embracing the global scalability potential for Indian fintech'
FinTech is a rapidly evolving segment of the financial services sector where tech-focused startups and other new market entrants are disrupting how the financial services industry traditionally operates. New FinTech companies and market activity are reconstituting the competitive landscape, blurring the definition of a player in the financial services sector.
India has experienced the emergence of numerous FinTech start-ups, accelerators and incubators over the last few years. India has everything going for it to establish itself as a global FinTech hub. With a large market of underserved/unserved customers, increasing mobile penetration, favourable demographics, an active start-up ecosystem and a large technology talent pool, India has a potent opportunity that is waiting to be seized in the FinTech space.
PwC's FinTech India practice is solely dedicated to this powerful merger between technology and financial services.
Our India leaders and FinTech experts share some insights and key trends from PwC's latest report Redrawing the lines: FinTech's growing influence on financial services (India FinTech Survey 2017).
Partner and India FinTech Alliances and Ecosystem Leader, PwC India
Joydeep K Roy Partner, India Financial Services Advisory Leader and Global Health Insurance Practice Leader
Siddharth Vishwanath, Partner, Cyber Security
Kuntal Sur, Financial Services, Risk and Regulatory Leader
FinTech is a dynamic segment of the financial services sector that is gaining significant momentum and disrupting the traditional financial services value chain. New FinTech companies and market activity are reconstituting the competitive landscape, blurring the identity of a player in the financial services sector. The FinTech sector is an exciting area with a lot going on
Below are a few sectors in FinTech that our fintech consultants at PwC track actively and believe are the key areas to look at for the next wave of innovations.
Financial Services companies face intense pressure to increase efficiencies and reduce costs while delivering next-generation digital services. Partnerships with financial technology startups and other nontraditional market entrants can give them the agility they need to support digital transformation and create a digital ecosystem that will retain existing customers and attract new ones. New startups are emerging to meet both customer and bank needs for channel integration and dynamic customer experiences that make banking easier to accomplish on the devices customers want to use. These vendors challenge the traditional often incumbent vendors of traditional online and mobile banking and core banking solutions
Robo-Advisory is the use of algorithms to support the entire investing process from setting financial goals to portfolio re-balancing and monitoring whilst bringing more transparent, traceable, efficient and customer centric standards along the overall value chain. Robo Advisors seek to disrupt the traditional asset and Wealth Management model by disintermediating the service with Direct-to-Consumer (D2C) platforms. These platforms provide an easier, faster, and more user-friendly investment based solutions to both end investors and asset and wealth managers.
Cyber and Financial Crime is an increasing concern for all financial institutions, from the largest global organisations to the smallest companies and partnerships. Preventing and detecting Financial Crime is rapidly evolving to be one of their biggest challenges, the impact of which extends well beyond monetary losses to reputation and brand, employee morale, business relations, as well as regulatory censure. Regulators and Law Enforcement Agencies are equally focused on ensuring that both their standards and also those of the financial institutions they regulate are set at the highest level. Today’s FinTech startups are taking on some of today’s greatest security challenges. As FinTech advisory leaders, the firm offers you end-to-end.
Omnichannel customer engagement combines orchestration and journey management to provide multi-channel contact center best practices for great customer experience with compelling business outcomes. It is about a seamless and consistent interaction between customers and their financial institutions across multiple channels. Leading companies with multi-channel contact centers are moving to the Omnichannel Engagement solution to further their competitive advantage. With an Omnichannel Engagement Center solution, a company can deliver consistent and personalized customer experiences across all channels, touchpoints and journeys.
Augmented reality (AR) and virtual reality (VR): AR involves a real-time view of the physical world around us, which is then improved or enhanced by digital information. VR, on the other hand, involves creating a simulated world, instead of reflecting the real world around us. Early adopters and technologists have started developing some noteworthy experiments with AR and VR in the financial services space. AR- and VR-aided solutions are gaining popularity in data visualisation, marketing and branding, training and development, etc.
Fintech is altering the way consumer and wholesale payments are made today in terms of when, where, how and who has facilitated them. Fintech start-ups are taking payments to the next level in terms of speed, convenience, efficiency and multichannel accessibility. They are driving client behaviour and fuelling expectations for better, faster and more innovative solutions across the payments spectrum, and making existing customer relationships with banks a lot more vulnerable than ever before.
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AI is already around us and used everyday within payments, money management and for robo-advice, particularly in the area of intelligent digital assistants that handle regular customer service enquiries and tasks. Smart machines and technology can turn data into customer insights and enhance service provisions, bringing the digital experience closer to the human interaction for consumers. Machine learning technology has advanced rapidly over the last ten years, and there are now more flexible and cost-effective solutions that Financial Services companies can implement, even with their often legacy-burdened IT systems.
The impact of Robotic Process Automation (RPA) on a company’s operations and competitive positioning is significant on a number of fronts: economic value, workforce advantages, quality and control improvements, and flexible execution. RPA allows separate business units within a company to customise solutions to rapidly digitize processes, delivering significant and sustainable value in short timeframes while reducing overall risks. RPA is dramatically streamlining a wide variety of back office processes in Financial Services companies. It is also helping them in compliance by handling all of the documentation and without errors and thus making audits much less cumbersome. Overall, RPA presents a great opportunity for Financial Services companies to reduce task handling times and automate end-to-end processes allowing them to speed up core business activities.
The blockchain is a new technology that combines a number of mathematical, cryptographic and economic principles to maintain a database involving multiple participants without the need for any third-party validator or reconciliation. Blockchain is a single, shared, immutable writeonly ledger of transactions that is updated when multiple, decentralised actors achieve a consensus on the validity of a participant’s new entries. The blockchain has the potential to disrupt the banking industry to its core through its adoption for storing, lending, moving, trading, accounting, reconciling and guaranteeing money through its consensus ledger, cryptographic security and digital signature.
The application of drone technologies in existing business processes is allowing companies to create new business and operating models. Insurance companies are contemplating the uses of Drones in three areas where drone operations can enhance an their procedures: risk monitoring, risk assessment and claims management (including fraud prevention). In the future, by combining drones with other disruptive technologies such as machine learning, Insurance companies will be able to improve predictions of damage by assessing risks better than ever before.
PwC seeks to engage with startups in the FinTech space and is looking for interesting innovators who can bring in the next wave of disruptions.
Click here to know more about FinTech for Start-ups
PwC FinTech practice helps incumbents stay abreast of emerging trends and leverage new start-ups that will either propel, or undermine, their business.
Click here to know more about FinTech for Banks
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