Business & Economy Startups How is fintech shaping financial services? Here are some thoughts from an...

How is fintech shaping financial services? Here are some thoughts from an industry veteran




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Mohsin Jameel, an industry veteran and a successful entrepreneur has a lot to say about the “Fintech Market” and what to expect from it in the future

Everywhere one turns these days – one can’t avoid hearing the term “Fintech.” This emerging industry has two faces that are polar different. On one side its creating fear among traditional bankers, while on the other it’s hailed as the next big ray of hope that has the potential to transform the entire world of finance.

For several years, small players and new entrants in the financial services industry found it challenging to stay afloat, let alone think about success. Well, not anymore! Today, the financial services arena is peppered with disruptors. These disruptors are very often fast-moving companies, mostly startups that leverage the power of technology to carve a niche for themselves.

This is evident from the fact that Fintech has received $17.4 billion worth of investments in 2016 alone. And, according to the EY’s Fintech Adoption Index for 2017, over a third of all digitally active users are now using two or more fintech services. And, the Fintech market is booming in emerging economies like China, India, Brazil, UK, and Australia.

The “Sharing” strategy

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Today, we’re familiar with sharing services in booking cars, hotel rooms, etc. This is just the beginning. By 2020, this “Sharing strategy” will become a major part of the financial market. People will still use banks, but the banks of tomorrow will have no resemblance to the banking institutions of today.

Here, by sharing, I refer to a methodology that provides for decentralised asset ownership. Technology will play a crucial role in connecting lenders to borrowers, eliminating the need for intermediaries like banks.

Recently, the surging popularity of Bitcoin, Ethereum, and other digital currencies put blockchain in the spotlight. Blockchain will create massive transformations in the functioning of the financial institutions, and the openness of the chain will build a secure and reliable infrastructure for the Fintech industry.

Also read: Is the unbanked sector a real problem, or just a bubble created by fintechs?

Customer Intelligence will come forward as the biggest asset of your business

Do you know what your customers prefer? What do they value? Are you sure? Today, Customer Intelligence is the core of all businesses practices. With big data & analytics, companies today can find out easily more about the preferences and likes of each customer.

Robotics and AI will bring back off-shore jobs

Just a few years ago, hundreds of thousands of jobs went to off-shore markets that had adequate cheap labor. Today, with the advancement in robotics and AI, more and more jobs are getting done locally. We are already seeing alliances forming between financial service providers and companies involved in robotics and AI.

Soon, robots will replace not just the teller but other key positions in a bank. While robots have made rapid advances, they are still in the early stages of development cycles. In the next 3 to 5 years, you can expect to see modest but evolutionary advances as new models.

Cyber Security will become one of the major obstacles

Cyber threats are one of the major problems facing financial institutions, and the Fintech industry is no exception. Here are a few key areas of for Fintech:

  • Third-party vendors
  • Cross-border data exchanges
  • Increased use of IoT brings in a whole array of smart devices into the network

Public Cloud will become the leading infrastructure model

Today, many financial institutions employ cloud-based software for various business processes like accounting, CRM, HR, KYC verification, security analytics and others.


The Fintech Industry is an apex of a major revolution. Finance and technology will become so inseparable that not only the small, upcoming players but even the big names in the industry will have to hold it or get lost in the race.


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