The banking and financial services industry has witnessed several major changes this year and going by the current momentum, fintech advancements should take this to a new level in 2018. Financial sector players have been striving to cater to their millennial customers with technology and they are steadily evolving into a predominantly digital ecosystem.
These are some of the trends that should gain traction in 2018 in the fintech space-
- Chatbots- Several chatbots have already been deployed by biggies like ICICI Bank, HDFC Bank and YES Bank. These chatbots are initial experiments and they can be more evolved next year. There would be chatbots with faster decision making potential in tandem with faster responses and accurate decision making.
- Machine Learning- Banks are expected to start adopting machine learning based models next year. This will help gain consumer insights along with improving responses and overall levels of customization. Big data tools will help banks forecast customer requirements and personalize solution delivery accordingly.
- Innovative Workflows- Embedded artificial intelligence (AI) supports backend operations at most banking and financial services players. This will lead to smarter and more innovative workflows which will help in scaling up overall efficiency.
- Blockchain- IndiaChain is the biggest blockchain network being made by NITI Aayog in order to lower chances of fraud, increase overall transparency and make enforcement of contracts faster. Several major banking players have commenced projects for assessing the viability of blockchain.
- Open Banking- Aadhar enabled payment systems and UPI (Unified Payments Interface) have contributed towards an open banking trend and this should grow further next year.
- Automated personalization- Banks will be tapping fintech for customizing user offerings on devices. They will be changing app appearances based on the customer’s usage. This will lay the foundation for more productive connections and there will be improvements in offering pre-filled information to users which is based on aspects like choices, earlier history of interactions and banking habits of users.
- Phygital approach- In 2018, fintech should make it possible for financial institutions to truly become phygital, i.e. a combination of physical and digital. Customers will be able to serve themselves at bank branches. CANDI is a system implemented by Canara Bank and several other players are expected to follow suit.
- Architecture agility- Digital solutions will be more preferred with budgets being lowered and a shortening of lifecycles. Banks will be following newer paradigms of architecture like micro services, micro apps and others. This will help in introducing newer changes.
- Security- Most financial services players will now be adopting extended measures for ensuring the security of their information. This will involve measures like biometric authentication, OTPs and encryption.
In recent times, digital banking led solutions have mostly been available for retail customers. This is expected to be extended for corporate and SME banking customers in 2018.