Emerging technologies in the financial services industry have consistently disrupted how consumers interact with their money, what they expect from financial institutions, and how those organisations operate. India's banking sector has undergone a paradigm shift in the past two decades. The result being the fintech industries upward growth trajectory in the last few years. The rise of digital commerce, innovation in payments technology using artificial intelligence (AI), Blockchain, Internet of Things (IoT) and real-time payments; and the introduction of mobile Point of Sale (POS) devices and QR has led to a reduction in the cost of acceptance infrastructure and resulting growth. As technology is becoming more accessible, consumers are presented with a multitude of options to manage and conduct their financial transactions. Enterprises are developing affordable banking platforms with the system infrastructure catering to digitisation of processes resulting in better fraud detection and easy decision making.
ETgarage expects more advances in a breakthrough in the Indian Fintech space. Because of the disruptive technologies the comparison of data, verification process, the credit assessment, approval of the loan and the disbursal process can now all be made in lesser time with more effectiveness.
Online lending is going to get a lot from blockchain technology. The decentralised public ledger eradicates the frequent frauds that have plagued the industry. The Decentralised ledger can keep track of fraud databases, payments, and disbursals, in real-time. For each transaction, the blockchain receives a unique timestamp which makes each transaction immutable and reduces misrepresentation of data. Blockchain naturally connects all parties on a system so that the customer would be linked directly to the lending institution, with full transparency and a real-time view of finances on an immutable ledger. This means there is much less need for due diligence which is very time consuming and expensive. A blockchain-based ledger will help in preventing the problem of ‘loan stacking’, which happens when a borrower takes loans from several lenders within a short period of time. The scope of improvement in the fintech industry at a macro level and online lending at a micro-level is huge.
TRST01 -VeriDoc Blockchain and smart contract solution helping in enhancing the security of consumer data and making the digital lending process more transparent.
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