From the Sumerian merchants who recorded the sale of livestock and other transactions on clay tablets 5,000 years ago to the advent of modern digital technologies today, financial technology has come a long way.
With the pandemic spreading market fears of the lower type, people around the world have drifted towards digital banking and the adoption of financial technology. It is not safe, convenient and only contactless; The fintech model is also very efficient and effective in terms of structure and communication.
In India and the Asia Pacific region as well, consumer-based markets are embracing digital banking and fintech innovations like never before.
According to a private personal financial services survey conducted by McKinsey, consumer use of digital banking modules is gaining momentum. The survey stated that nearly nine out of 10 people in emerging and developed Asia Pacific markets are active users of digital banking and are likely to purchase more banking services in the future through a combination of digital pathways.
The share of consumers in emerging markets in Asia Pacific actively using digital banking services increased from 54% to 88% in the four-year period between 2017 and 2021. Amid the widespread strong use of modern financial technology tools such as e-wallets, the penetration of fintech on Widespread spread across the emerging Indo-Pacific region at a rampant pace.
This overall shift towards digital banking has occurred in a rapid manner and has been reinforced by various trends such as the increasing use of digital payment patterns for a wide range of transactions such as banking and the broader use of teleconferencing/video calling rather than face-to-face calling. External meetings have become the norm during the COVID-19 pandemic.
However, survey results indicate that increasing levels of digital adoption are likely to intensify even as the effects of the pandemic recede in the future.
Let’s look at some of the most important financial related matters cooperation Trends set to spread rapidly from 2022 to 2025:
The changing role of finance
By automating financial processes, the financial mechanism will reinforce its commitment to unlocking new business insights, services and solutions. The management of the resources placed under financial control will depend on the sectoral capacity to create value and add.
Needless to say, such a game-changing development will depend on deep, actionable insights and pure customer service. By taking advantage of this relentless trend, many financial institutions are likely to thrive into comprehensive business services centers.
Finance courses in the new era
As finance adopts a concurrent track, periodic reporting of financial cycles will become obsolete and inappropriate. Traditional financial cycles become less relevant when both actual values and forecasts can be generated based on real-time demand. The old differentiation between operational and analytical data will be eliminated. However, financial institutions still have to address external requests for periodic information, although outside investors may want more frequent statements of overall performance.
It is said that the big league players will be running with a new slogan: Forget the concept of lockdown. It must be remembered that companies in the future will not be subject to monthly or quarterly forecasts as they will all be done in real time. When information can be accessed in an instant, traditional cycles will disappear leaving people time, energy and resources to focus on exploring new, actionable insights.
Self service is the best service
There are a number of seasoned business professionals who are skilled and independent when it comes to basic financial principles. However, if they could solve their queries via a digital bot on their smartphone, they would willingly oblige. A wide range of activities spanning from budget queries to report generation etc. are likely to be automated over time.
A new group of intelligent agents will rapidly decode different types of business information based on personal requirements and aim to provide that data in a timely and proactive manner. As we gradually progress into this not-so-distant future, Excel spreadsheets will be replaced by graph-rich information that is automatically accessible and easy to use.
new technology frontier
In the midst of the emergence of new business models, the fusion of advanced robotics and algorithms with a diverse workforce in the fintech field will open up unseen horizons. Companies will continue to evaluate the advantages of automation against internal and external functions. As automation introduces new lever cost management, financial institutions will have the opportunity to monitor and improve their existing organizational structure. The introduction of “Finance as a Service” is set to generate massive appeal beyond middle-market institutions.
The future of the financial industry lies in the hands of automation and innovation. With the pandemic sweeping away contemporary terms of financial engagement, the need to embrace holistic digitization and improve technology across every financial spectrum – whether banking, insurance or payment transactions – will become an absolute imperative for operating in the brave new world.
Written by Rohit Garg, CEO and Co-Founder of SmartCoin