The financial ecosystem of India has witnessed an age-old dominance of large banks and financial institutions that followed a single approach for its customers and patrons.
With the changing times, technological boom has brought pathbreaking innovations within the finance industry. Advanced gadgets and smartphones and high-speed internet services, personalized fintech solutions have proven their mettle in the diverse landscape of India. As of March 2024, India has over 820 million active internet users, with more coming from rural areas as per a news report by The Economic Times. The expansion of affordable smartphones has played a crucial role in this growth, with over 900 million smartphone users in the country.
It is also interesting to witness how Fintech has made its way across sectors covering big, medium, and micro segments. Additionally, the delivery and consumption of financial services have changed.
History of Fintech Revolution in India
The panoramic view of Fintech in India is interesting. The revolution began with ways of transmitting financial information across borders to build a stronger infrastructure. India’s economy reached a new high during the 1980s and 1990s, when web-based business models, electronic installment frameworks, portable banking, web-based shopping, and digitization of banks were introduced.
In the aftermath of the Global Financial Crisis of 2008, people began to migrate away from traditional banking systems towards new ones. Digital India has played a significant role in the growth of the fintech industry.
Among the five Fintech markets are digital payments, digital investments, digital capital raising, digital assets, and neobanking. India is known as the fastest growing fintech market in the world. In this region, thousands of companies use technology to automate and enhance banking, lending, accounting, and investment operations.
Data Highlights – Indian Fintech Market as per Statistica
The largest market will be Digital Investment with an AUM of US$1,294.00m in 2024.
- The average AUM per user in the Digital Investment market is projected to amount to US$9.38 in 2024.
- The Digital Assets market is expected to show a revenue growth of 11.81% in 2025.
- In the Digital Payments market, the number of users is expected to amount to 837.20m users by 2028.
- Total AUM in the Digital Investment market is projected to US$1,294.00m in 2024.
What Are Personalized Fintech Solutions?
Personalized fintech solutions refer to financial services that are customized to meet the specific needs, behaviours, and goals of users. These solutions use advanced algorithms and big data to analyze user behaviour, financial history, spending patterns, and preferences. Based on this analysis, fintech companies can offer products that are tailored to the individual, whether it’s personalized investment advice, customized loan offers, or bespoke insurance plans.
For instance, digital lending platforms in India are now using AI-driven credit scoring models to assess the creditworthiness of borrowers. Unlike traditional credit scoring, which relies on limited financial data, these models analyze a broader set of factors, including social media activity, payment history, and even mobile usage patterns, to provide a more accurate and personalized credit score. AI-driven credit scoring models have made credit more accessible to a wider segment of the population, particularly those without a formal credit history.
For Customer Engagement
Customers perceive finance, banks, and insurance as dull and monotonous entities. When you create a sync between finance and personalization, it has a greater impact, and a customer’s journey becomes enjoyable. Introducing personalization with technology makes the entire sales and customer journey more enjoyable and inconvenient for everyone involved.
A Game changer
By utilizing advanced technologies such as Artificial Intelligence (AI), big data analytics, and mobile applications, these solutions provide customized financial services based on the specific needs of the individual.
Fintech Personalization Tactics
- Using a customer’s past financial activities to customize data.
- Using predictive models, fintech companies anticipate future customer behavior by identifying consistent financial habits.
- Studying recent purchase behaviour for tailoring short-term promotions.
- Emphasis is placed on identifying user interests to enhance engagement.
- Refining user interests using basic algorithms.
- Used for credit history establishing.
- All decisions are made by complex algorithms with minimal human input.
- Data-driven personalization of banking services.
- Develop an intuitive and user-friendly interface.
- Create a platform that meets the unique needs and preferences of businesses and individuals.
- Make navigation seamless and features easy to find.
A vital market need, fintech innovations have successfully addressed the significant challenges inherent in traditional banking by employing a personalized approach, thus enhancing the quality of banking services.
