| |May 20198CIOReview | | August 20188CIOReviewhe transformation of the Indian banking industry started in mid-1990s. The advent of IT/ tech-nology solutions such as computerisation and ATMs gradu-ally changed the dynamics of banking. Broadband and smartphone penetra-tion further removed physical barriers and brought banking closer to the cus-tomers. The emergence of the new age customer who demands experience is behind this transformation. Customer ExperienceIn such a scenario, the banking sector is becoming strategically focused and technologically advanced to respond to consumer expectations. While at the same time, it is trying to defend market share from an array of competition.Therefore, innovations that take advantage of data, advanced analytics, digital technologies and new deliv-ery platforms have never been more important. IT and technology platforms have moved from in-house solu-tions to SaaS model core banking. Such innovations have enabled FIs to concentrate on their core business and build lots of surround technology solutions that can lead to enhanced customer experience.As banks focus on digital and FIs adapt to a broad range of financial technology solutions, the industry can see some path breaking innovative trends. We al-ready see innovation happening in service expansion, delivery channels, integrated payments and application of block chain technology among others.To further enhance delivery and provide personal-ized services, banks will work on new mobile applica-tions and voice-enabled gadgets keeping consumer at the forefront as well as the centre of all innovation.Innovation DriversWhile conventional IT systems brought radical change, going forward the emerging fintech space will play a bigger and critical role in shaping up Indian's financial services industry. Fintech scope spans and is not lim-ited to core banking, insurance, digital lend-ing, financial and non-financial transactions. They will deploy Artificial Intelligence (AI), deep level Machine Learning (ML) and Data Analytics (DA) to enable predictive banking, an exciting innovation. In predictive banking all internal and external details are consolidated to build predictive profiles of custom-ers in real time. Use of such rich customer data helps banks provide enhanced customer experience, while in-creasing security and efficiency. As opposed to blind selling of products, financial institutions that deploy robo-advisors and AI-driven chat-bots will provide value to consumers through next-best actions. The real innovation will occur when financial institutions integrate this capabil-ity with the expanded services of open banking and connected devices.Fintech TrendsFintech, integral to banking today, is expected to wit-ness some major trends: Mobile Banking: Increased usage of data and smart-phone penetration, both in urban and rural areas, will drive mobile banking. Digital India, demonetisation and other related factors increased digital platform awareness. Accessibility and convenience are the keys to mobile banking adoption. Block Chain Adoption: Another trend that is fast catching up in financial services sector is the block chain technology. The Reserve Bank of India has TIN MY OPINIONCUSTOMER EXPERIENCE WILL DRIVE FINTECH INNOVATIONBy Vinod Kumar, SVP & CISO, Fino Payments BankVinod Kumar
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