Movement in financial service industry:
The businesses have been running on traditional process, platform for variety of their functions. Recently, the financial institution has experienced disruptive initiatives by FinTechs start-ups. The footprint of disruption is mainly observed in electronic payments in the market. The institutions are readying themselves to face the changes and undergo the shift. It has becomes the need of hour to learn the future functionality and adapt it, if not soon, at least before the innovation exert the pressure on traditional business model.
De-Cashment: Soon the cash transaction will be replaced by the electronic mode. The innovations in payment segment enable the end user settle their small value obligations merely by use of cards or by few clicks on their handsets.
Virtual experience: The payments are moving from physical to electronic way in much standardized, automated and safe environment. The virtual movement highly exhibit the absence of experiencing going cash from payer’s hand. This changes their need and behaviour of transacting with other players in the market.
Engagement: As the payments and mobility is getting more integrated, the consumer engagement with the merchant and other financial institution will be involve and strengthen over a period of time.
Analytics: As the transactions are done in electronic form, the possibility of collecting data at every touch point is immense. The data enables the party viz. merchant, financial institutions or service provider to understand the consumption pattern of their product/service or stores. This enhances the ability of business to understand and extend the product and services to the customers.
Efficacy in operations: The innovations are built on infrastructure already in place with less capital or variable expenditure. The cost of transacting electronically will reduce drastically as the inflow of transaction increases. This aid to benefit the business with reduced cost.
Features of innovation