Fintech refers to the intersection of the financial services industry and technology like digital currencies, mobile payments, big data, and even the cloud. An increasing number of businesses transition to more digital models, they try to optimize and streamline their processes. Staying efficient is vital for being competitive in the fast paced world of today. Kavan Choksi hence points out that modern fintech companies are striving to use digital transformation strategies in many ways to improve their efficiency, including finding brand new ways to process and leverage data.
Kavan Choksi discusses how digital transformation is driving the fintech industry
In the current age, digital transformation has become a key disrupter in almost every industry, and the fintech domain is no exception. The introduction of diverse digital technologies in the financial sector over time has made it pretty tech relevant and customer-centric. Technology is changing how people interact with financial services, and makes it a much smoother journey for startups to enter the market. Financial organizations are more efficiently able to deliver the experiences expected by their end-users and stakeholders by making use of technologies. Tech-based innovations also allow fintech to work faster and become more competitive in the marketplace.
For decades financial services industry had operated while maintaining a more traditional perspective and approach. After all, it does take time to adapt to innovation. But the covid-19 pandemic played a huge role in accelerating rapid digital transformation, as financial companies across the world began to use powerful computing systems. Changes in the industry can also be attributed to the ever evolving customer behaviors and emerging patterns set by cash-less and contact-less activities.
Kavan Choksi points out that many traditional tending models are making themselves ineffective in the current system as they are not built to scale and can impose a barrier on businesses when it comes to earning money. Legacy systems are also more expensive and have a lack of flexibility, as the majority of their operations are not automated or paperless. This is where the use of a cloud-based lending approach maintained by many fintech companies can make a difference. Creating an application programming interface (API) can seamlessly integrate with asset systems and offer a robust digital model that can drive a well-designed lending solution.
Owing to the increasing pace of digital platform acquisition during the pandemic, a sharp rise in the demand for credit cards, digital wallets, and digital payment platforms has been witnessed. Companies of diverse types and sizes across the world have also started to take advantage of the digital profits. They also take out loans that are available through secure, fast, and simple fintech solutions backed by robust infrastructure processes. The fintech industry is poised to make the most of digital transformation as an increasing number of businesses are steadily warming up to the idea of using digital finance solutions to drive their financial operations. However, the financial institutions that aren’t able to embrace digital transformation can fall behind, and lose both customers and market share in the end.