EMERGING PERSPECTIVE IN FINTECH 1.docx.pptx

EMERGING PERSPECTIVE in fintech

1. EMERGING TRENDS IN FINTECH DR. ABDUL KOKORI

2. Objectives What is Fintech? To understand the trends in fintech How technology has improved the finance function To identify the challenges in fintech Conclusion

3. Introduction Technology has completely transformed how finance functions work, making it an essential part of the finance industry. It has revolutionised every element of finance, encompassing continuous accounting, automated systems, advanced analytics, data quality, and even how transactions are carried out.

4. What is fintech? Fintech is a portmanteau of the words “financial” and “technology”. It refers to any app, software, or technology that allows people or businesses to digitally access, manage, or gain insights into their finances or make financial transactions. It includes a wide range of digital products and platforms that make use of cutting-edge technologies like blockchain, big data analytics, and artificial intelligence. These innovations are constantly enabling finance teams to be more and more efficient

5. What is fintech? There are over 200 standalone Fintech companies, excluding the banks and telcos, offering fintech solutions. Successful Fintech companies in the industry include Paga , Cellulant , Interswitch, Remitta , Etranzact , Flutterwave , Paystack , Piggybank, Onefi , Fetwallet , CowryWise , OPay , et al. They offer a wide range of enhanced financial services, but with a central focus on products and services that are designed to meet the customers need, can be deployed quickly, are easy to use

6. 1. Systems for online banking and payments By enabling users to execute transactions remotely, online banking revolutionised traditional banking in the 1990s. When it was established in 1998, PayPal gave users a safe and practical way to make payments online, revolutionising e-commerce, as well as the way businesses transact with one another. Trends in Fintech

7. Trends in Fintech . 8 2. Mobile wallets and banking The iPhone, and other smartphones in general, opened the door for mobile banking applications. When Google Wallet was introduced in 2011, consumers could now make payments using their smartphones, increasing accessibility and ease. This ultimately enhances traceability within businesses and assists with the likes of expenses.

8. Trends in Fintech 3. Peer-to-peer lending By bringing together borrowers and lenders directly, platforms like Zopa (2005) and Lending Club (2006) challenged the traditional lending industry. These platforms made use of technology to speed up the loan application process and provide lenders and borrowers with better conditions. This sort of technology inevitably helps finance teams to source credit faster when they need it. 9

9. Trends in Fintech 4. Cryptocurrencies and Blockchain With the launch of Bitcoin in 2009, decentralised digital currencies and blockchain technology came into existence. Blockchain revolutionises financial transactions and record-keeping by enabling safe, transparent transactions. Decentralised finance is now a major consideration for CFOs as it begins to impact finance teams within organisations, and may change the way they manage supply chains, payments, and invoices. 10

10. Trends in Fintech 5. Crowdfunding platforms By enabling people to raise money for their initiatives, Kickstarter (2009) and Indiegogo (2008) revolutionised fundraising. By connecting project developers with potential supporters across the globe, these platforms democratised access to funding. They also help not-for-profits to have greater visibility and control over the funds they’re managing. 11

11. Trends in Fintech 6. AI and Machine Learning in finance Chatbots, virtual assistants, and fraud detection systems, which are all powered by AI, have revolutionised risk management and customer service. AI and machine learning have automated many of the important processes within the finance department, such as spotting fraudulent activity that is related to the likes of expense submissions/approvals. 12

12. Trends in Fintech BNPL BNPL (Buy Now, Pay Later) is another trend in fintech and is used for customer loyalty. In this trend, customers make bulk purchases and pay in instalments. Examples of buy now, pay later are financial technology organizations like Paypal , Sezzle,Amazon Pay, etc. In BNPL, fintech organizations provide two types of loans: loans with interest and loans without interest.   13

13. Trends in Fintech   14 Open banking This is one of the important trends in fintech because open banking ensures safety and protects customers when sharing financial data. Sharing of financial data between banks and third parties is done through the mechanism of APIs. The Unified Payment Interface (UPI) is an example of open banking. The Reserve Bank of India controls and operates open banking in India.

14. Trends in Fintech   15 Virtual cards Virtual cards have no physical features; this card is only available in online mode. It is like a debit and credit card; it contains a unique card number, expiration date of the card, CVV, etc., but these details are only available online. This fintech trend is used to enhance the security of customers data and enable smooth functioning. Examples of virtual cards are: Visa Checkout, Google Wallet, Apple Pay, Masterpass , etc.  

15. Trends in Fintech   16 Gamification Engaging the customers is one of the most important things, and Gamification is done by  adding games to websites, learning management systems, community platforms, etc. This is to increase the participation of people and engage customers. This is a vital strategy in finance, and it is a familiar trend in fintech.

16. How technology has improved the finance function Technology has made enormous strides in the finance sector, transforming how financial data is managed, as well as the way transactions are carried out. Here are some of the important ways technology has changed finance: 17 Efficient data management Financial data is now easier to organise and access if we compare new technology to outdated finance tools. Through digital platforms, users can effortlessly manage their financial information. Customers can check balances and execute transactions, for instance, using banking applications rather than going to physical branches. For processes like payroll management, large organisations can ensure they keep everything in one place.

17. Fintech trends Financial technology emerges day by day and this lead to the growth of trends in Fintech. Particularly, from the year 2020 the emergence of fintech trend is phenomenal. Some of the important trends in fintech are:        

18.   Challenges in Fintech Fintech has not only having trends, it has some challenges. Some of the challenges in fintech . They are        

19.       Security problems Traditional methods provides a greater security, but modern methods while paying through digital mode security problems happens there. This is one of the important challenges in fintech industry and not only security, personal data also sometimes hacked by hackers.   Government intervention Fintech is one of the important sector , therefore government maximum intervene the fintech sector. This is a big challenge in fintech and if any mistake in fintech found by government, high penalty will be imposed.   Lack of expertise All users prefer the user friendly options. But in fintech , some complexity features like non user friendly mobile app, lack of expertise, biometrics etc.  

20.       Influence of Block chain Block chain uses in fintech is good but at the same time integrated block chain is very complex job and it is not suitable for all financial organization. And moreover block chain trend is not familiar in our country so majority of financial companies not willing to adopt this trend   Pandemic effect After covid , all companies effected so it is very difficult to predict the future. This is one of the main challenge on fintech . Severe economic crises after pandemic lead to backdrop of fintech .   Absence of physical branches Fintech is completely online oriented and there is no scope for physical branches. Traditional customer cannot make interest or belief towards online mechanisms. This heavily effect fintech .

21.       Suggestions Fintech should give proper awareness to their consumers about the trends by the way of social media, television, newspapers, campaigning etc.. Expertise people should appoint for handling the technologies smoothly and these expertise should recruit on the basis of technological skills, thinking ability, problem solving skills etc.. Simplify the procedures in fintech for engaging customers, For example:Using single application for doing all process, reduce site traffic, using high internet connection etc..

22. Conclusion Trends and challenges are the two aspects of fintech . That is if the trend emerging , challenges also arise. It is not possible to eliminate the challenges in fintech but it is possible to minimize it. The experts should care the trends as well as take the steps or finding solutions to reduce challenges. If the challenges will be reduced, surely trends in fintech helps to develop the country and the whole world.

23.       “Change is the law of life, and those who look only to the past and present are certain to miss the future.” —