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Fintech is described as the fusion of financial services and new technologies to enhance financial offerings and services. According to a report by Credit Suisse –A Guide to the Galaxy, Fintech’s have been gaining scale across personal finance verticals like digital insurance, discount brokers, loans, and wealth technology.

“India’s Fintech ecosystem is charting a unique growth path as it rides on digital public infrastructure and leans on partnerships. Digital payments have already scaled up with over 200 million active users. Fintech’s are now transcending other financial segments including lending, insurance and wealth management, many in partnerships with incumbent players,” noted the research report.

Further, the pandemic year has accelerated fintech acceptance to the point that it has become a trend. This tendency has facilitated communication between consumers and service providers. Personal financial solutions are now available on smartphones as a result of the advent of digitalisation. This enables the user to make sound financial decisions.

“Fintech companies have brought together financial services and technology to make operations easier. No financial sector is immune to the influence of technology, from paying credit card bills to lending to consulting to investing. Fintech adoption has accelerated due to the pandemic year, and it has now become a trend. Consumers and service providers alike have benefited from this trend,” said Nishant Arora, Co-founder & Director, Setup Services India.

Let’s take a look at how the fintech industry has changed the personal finance industry:

Wealth management technology

The emergence of fintech has resulted in the development of digital wealth management services in the wealth management sector. Robo-advice has revolutionised wealth management by providing advisory services through the use of algorithms. Additionally, it simplifies the process of investing in numerous asset classes. Additionally, it provides individuals with a customised experience and services based on their unique needs.

Insurance

Technological advancements and shifting consumer behaviour have significantly altered the insurance industry. Insurtech is a subset of fintech in which searching for insurance plans online and filing an insurance claim have become highly convenient. The insurance industry has been transformed by artificial intelligence, blockchain technology, and data analytics for risk management, claims management, claim settlement, KYCs, and background checks.

Payments

Thanks to fintech companies that quickly respond to customer needs and develop innovative solutions to existing payment. With the advent of technology, the time has come to transition to a cashless and cardless society.

The payment industry’s digitisation has shifted the world toward contactless transactions. Highly secure payment channels are becoming an integral aspect of personal finance management. Payments have become more convenient by integrating UPIs, mobile wallets, and barcode scanners with point-of-sale systems.

Lending in the marketplace

Today creditworthiness is determined for those seeking loans using data analytics and data collection. This enables informed decision-making and further decreases time and effort. Technological advancements have enhanced this experience for both applicants and lenders.

Without the advancement of technology, the days of managing personal finances are over. With the rise of technology, fintech provides numerous new options for individuals and businesses by enhancing the customer experience, streamlining operations, and adding a layer of rapid and efficient financial transactions across multiple platforms.