Trends that can transform the finance and banking industry in 2019

by Finway FSC Empowering People Financially

2019 is going to witness financial fluctuations in the wake of rapid digital innovations. The financial institutions with traditional mindsets will need to switch to newer methodologies for survival. It’s an era of informed consumers who have numerous choices available when it comes to utilizing banking facilities. Either transacting money or seeking to apply loans, be it a home loan, business loan or education loan, no more they need to be physically present while visiting banks.

Here are some important trends that the financial services industry should look forward to in 2019.

Pocket Banking

The digital banking atmosphere has completely washed off the traditional practices of visiting banks and standing in queues for long hours. Fast forwarding to today, a smart phone alone is enough to take care of all such functions; be it applying for loans, transferring funds or issuing a new debit/credit card. The consumer no more looks for tangible banks but 24/7 access to online services, which is readily available through various banking applications on smart phones. 2019 will see more such innovative and personalized experiences in banking.

New demands with P2P lending

India is a country of festivals and celebrations such as wedding, Diwali, Holi etc. And, gradually many people are adopting the P2P lending approach with no hassles of financial institutions. Loans are easily and quickly available to consumers. Many have even received loans in less than an hour. P2P festive loans are thus getting trendy, especially with advanced technologies.

Collaborations between banks and fintechs

Banks and fintechs are gradually concluding that collaborating would garner better results than competing with each other. Hence, more such financial institutions are teaming up to provide better services to consumers. It is also called the market place model, where both fintechs and banks create marketplaces to help consumers discover and utilise the wide range of financial services that trusted third parties offer in today’s financial landscape.

Data Analytics

It’s good that today we have access to data, but managing that sea of data is quite difficult. Also, in the coming years, connected technologies will further give birth to more and more data. It will thus be critical for financial institutions to come out with data analytics solutions to collect, utilize and accordingly offer seamless services to end consumers or get outshined by their competitors.

In the future too, digital innovations will enable financial institutions to offer more personalized services to consumers. It would be exciting to see how these innovations gradually mitigate or eliminate paper, time and cost, both for consumers and the banking industry.