Fintech has changed quite a bit since 2020 across the world, thanks to the pandemic. In India, fintech has shown monumental growth and the Indian financial services industry is fast adapting technology and trends which are critical for sector growth.

Let us look at the top ten trends in fintech which are showing promise and growing globally.

BNPL 2.0

We all know BNPL, but BNPL 2.0 is set to define a new approach which will means BNPL operators will start earning from merchant commissions instead of from buyers. So, consumers will no longer pay charges. This is an entirely consumer focused trend which we need to watch out for.

Virtual Bank Cards

These are digital credit and debit cards, which are available on your e-wallets, and this is fast catching up in India too. Virtual card’s major benefit is the protection it gives consumers against traditional frauds and scams while making transactions

Alternative Lending

Well, we might know this trend as P2P lending, this trend has grown quite a bit in 2022 and will remain strong especially in India and other South East Asian countries. Loan services in this fintech trend, are given via online platforms that match borrowers to lenders and investors looking to tap alternative markets.
Proptech
Digital mortgages, this one is going to be disruptive very soon. Although it is not very popular in India yet, it is quite the rage in the US and UK and it is sure to make some noise in the Indian market too. Proptech makes applying for a mortgage, getting an approval, and repaying it cost-efficiently seamless and all this while complying with regulatory requirements.

Stablecoins

These are the new age cryptocurrency. This is gaining traction due to the fact that it combines transparency and decentralization of a blockchain ledger with the stability of gold or dollar-backed fiat currencies. This should sufficiently mitigate the volatility of conventional crypto.

AI and ML

AI and ML will remain critical for fintech growth globally and will go beyond just Chatbots. AI also works for risk management and fraud prevention. With more digital transactions come risk and fraud, and AI will be critical is mitigating these challenges.

Digitization of Capital Markets

Stock markets will get a sense relief through this, as digitization will enable stock exchanges to embrace data and analytics as integral parts of capital management and political influence away from shareholder interests.

Biometrics

Biometrics will become important is improving consumer experiences. From fingerprint or face recognition-based transaction approvals, biometrics is bound to enhance two factor authentication protocols.

Regtech

Automated regulatory technology is directly proportionate to saving money, improving compliance and streamlining data use in the financial services context. Regtech also plays a huge role in controlling money laundering.

Distributed Ledger Technology (DLT)

DLT is also commonly known as Decentralized Finance (DeFi), which is the merger of fintech and blockchain. DLT is critical in insurtech, decentralized payment platforms and cryptocurrency exchanges, and open banking APIs. DLT is here to stay and will show strong growth in 2023.

To engage with innovative technologies and trends that are critical for the growth of the Indian financial services sector, do not miss out on attending the 2nd Fintech India Summit & Awards 2023