Why Fintech adoption is the need of the hour in the BFSI sector

It means that banks will now function the way the world functions. Banking becomes as attractive as shopping for its customers and is no more restricted only to in-person transactions. Banking is becoming yet another activity like browsing or logging into Twitter, as evidenced by the success of SBI’s YONO (You Only Need One) app and Kotak Mahindra Bank’s Jifi app, which makes one wonder whether these are banks or e-commerce sites! Banks want their customers to shop for services from third parties – like booking movie tickets – but while still in the banking sphere of influence, so that they can access their purchase habits.

With increased cases of non-performing assets from India Inc. banks not only want credit growth, but healthy credit growth. Banks are looking to monitor early warning signs in accounts much before they default and are starting to use financial models to predict the future behavior of customers right from the time they submit applications to a bank for a banking facility. This kind of availability of customer data also means that micro, small and medium businesses – the segment long ignored by the mainstream banks, (in-turn forcing them to moneylenders and shadow bankers) have started gaining access to credit.

With more customers being welcomed to the banking system for the first time, the role of technology does not end there. Throughout the lifecycle of the customer with the bank, predictive analytics helps banks leverage the information that they have within the bank and outside, to provide more meaningful and relevant products and services with much higher ease and convenience.