Technologies Personalizing Financial Services

Have you ever heard of anyone being excited about going to the bank? Probably not. Notably banks have done fairly well in shifting from physical to digital format, but let’s face it, their apps are as much visited as their branch offices. What if there was some way that all the financial services we availed, could be bought and managed from the point of sale on any website or online marketplace and not from the banks’ app or office? It may sound unrealistic, but there are some startups already working on such exciting ideas that will forever transform banking & finance as we know it.

Embedded Finance

How many times do we stumble upon online markets with great offers and products that are extreme delights but out of our current budgets? However, if we could turn the price tags into EMIs, delay the huge down payment, we could grab a lot more. But here comes the friction, unavailability of funds, high interest rates on credit cards and cumbersome e-mandates for auto-collection might deter the option of EMI payments.

This is where embedded finance steps in with the butter; on the payment checkout page, the technology provider embeds the EMI conversion option that is provided based on user’s transaction on the platform and credit history. Thereby, making the buying experience more seamless and faster. With higher purchase success, larger cart values and better customer acquisition merchants get a lot from these players. This justifies revenue share with merchants and allows zero interest credit to customers. This button is making a lot of parties happy.

Company to change our buy nows to get nows

Embedded Insurance

With our first ground breaking technology the buy now button converted to a credit line. Now, we have another hot cake in the FinTech space that has been gaining attention like no other. This technology is bringing insurance of all sizes, for almost any product, right to the digital sale point transforming insurance from a push to pull product. Embedded insurance offers bundled services (insurance – tech, compliance and the products) to anyone who can upsell, cross sell or… just sell insurance to their customer base. The basic premise is to find relevant places to offer insurance and then partner with the companies and platforms that offer such purchases to create a simple, digital offering at point of sale. Behind the scenes lie sophisticated APIs and decision algorithms enabling such transactions seamlessly and invisibly (to the end user).          

The one “boxing insurance”

No touch Investing

Okay, simple question: What do you do with all the “1s” that are left from the purchases we make from the “99” gimmick? We can either forget them or better yet, just invest them. But what good is this singular micro-investment and why will one even bother to keep adding these small amounts repeatedly to one’s investment piggy?

All you need is a simple sign up with an app and it links with payments done via debit/credit cards, every purchase is rounded up to the nearest dollar or denomination and the spare change goes to investments of your choice (Mutual funds, passive funds, and so on). This makes it so easy for people with smaller capital pots, wanting passive investment options. Moreover, there is no pain of parting as in case of SIPs or lumpsum investments while discipline and corpus builds over time. Spare-jar turned gold chest!

Autopilot to our investments

Conclusion

To conclude, there is more than just a high wave of opportunity to look out for in FinTech. The adoption of digital services has been turbo-charged by the spread of the pandemic and there are infinite possibilities to merge, enhance and offer financial services such as payments, credit, insurance, remittance and so on. Businesses and financial institutions can be great beneficiaries of this change provided they are open to accept and partner with tech and its providers. Given that the ultimate winner is the consumers as promised, we have a real WIN-WIN in FinTech.

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