Fintech has become increasingly popular globally. The pandemic has propelled the expansion of this massive industry in the past few years. Among the many services and streams under the fintech umbrella, embedded finance remains one of our favorites owing to its applicability and practical usage.

What is Embedded Finance?

Embedded finance, or EmFi, involves the integration of financial services and non-financial platforms through APIs (Application Programming Interfaces), implying that non-financial firms and service platforms can offer financial services by including embedded finance into their system. Embedded finance has grown exponentially since the pandemic because of the increasing demand for digital financial services and the easy supply continually injected into the fintech industry. 

With embedded finance, any non-financial application, firm, or platform can become a fintech. Companies like Uber, which started as a taxi-hailing service app, have come a long way to become super apps that involve financial services. Such is the power of embedded finance. 

The four major areas under this subsection of fintech are e-payments, instant credits and digital loans, embedded insurance, and investment options.

In the Asia Pacific alone, the embedded finance industry is estimated to grow at an average pace of about 25% by 2029. Such massive growth estimates convey a humungous potential in the industry.

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EmFi Impact on Banking Services

EmFi enables non-financial platforms to become fintechs and offer financial services. Such advancements in the financial industry have had a big impact on banks and financial services. Some of the key impacted areas in banking services are:

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Thrust in Digitalized Services

With the sudden rise in technology’s adoption, there has been an immense demand for digitized financial services. Banks and financial institutions that initially found themselves immersed in heavy competition from fintech are now treading towards a more collaborative structure, where the financial entities are assuming the roles of providers and enablers in integrating financial and non-financial channels.

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Less Paperwork

With EmFi, there has been a substantial reduction in the involvement of paperwork and plastic. Users are now demanding more cashless and cardless platforms that enable a seamless user experience without going through external channels like cash and cards.

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BNPL

Buy Now, Pay Later has been a market disruptor because of its sudden popularity. BNPL offers instant credit to purchasers where a third party makes payment to the merchant on behalf of the customer and allows the customer a moratorium period before repaying their small loan. The BNPL industry has given the credit card industry serious competition, compelling it to remodel and restrategize its plans. 

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Better Reach

EmFi is more accessible, making it easier for more participants to join the wagon. As more customers engage with EmFi, more transactions occur, clearing the way for a greater variety of services like e-loans and embedded insurances, more intensive APIs, and more possibilities.

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Banking for Businesses

With EmFi, there is an opportunity for business-oriented financial services to get a makeover. Small and medium enterprises (SMEs) can benefit considerably from digital services, like easy loans, better cash flow systems, etc., offered through digital channels.

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What is Financial Inclusion?

A mass minority in the world remains unbanked or underbanked even today. There are several reasons for the large percentage of the unbanked and underbanked sector, like low credit scores, bad past experiences with banks, poverty, low level of trust in banks, lack of accessibility, etc. Financial inclusion begins when opportunities are extended to such individuals to establish relationships with banks and financial institutions. 

The unbanked sector percentage in the Middle East and Africa is almost 50% of the population; in the Asia Pacific, the sector stands at about 24% of the entire population. Such figures indicate a grievous issue in the system where uncountable individuals remain financially excluded.

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EmFi Impact on Financial Inclusion

Embedded finance has massively altered the layout of the financial system globally. As more non-financial participants join the revolutions, innumerable opportunities come to the surface which otherwise would stay dormant.

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More Participation

With EmFi, there is more participation vis-à-vis providers and users. Embedded finance chooses a different trajectory that majorly bypasses the nuances involved in traditional banking. Less paperwork and better control are big incentives for the unbanked and underbanked sectors to explore EmFi and join the system. 

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Convenience Banking

EmFi also advocates convenience as digitalization enables seamless services without the restriction of time and place. Such comfort and convenience also act as big motivational factors for individuals who lack the resources to go through traditional banking channels.

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Better Accessibility

The spread of the internet is unimaginable, paving the way for better reach and accessibility. For individuals residing in areas with low involvement of banks and financial institutions, EmFi comes as a savior.  

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Varied Services

Ever since the dawn of the internet, the demand for different services and products has become unstoppable. With the growing demand for EmFi, the industry has been compelled to provide a wide variety of services to meet people’s demands. Non-financial firms and platforms are aspiring to offer multilayered banking services. Such diverse services have also spurred the unbanked and underbanked sectors to join the financial reign.

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Banking for SMEs

Apart from individuals, EmFi is also inching towards creating opportunities for SMEs where businesses can take advantage of better cash flow solutions, easy digital loans and repayment structures, and other banking services.

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Closing Thoughts

Embedded Finance is a futuristic concept involving advanced technological developments. Other than creating opportunities for businesses to explore additional revenue streams, EmFi also brings immense convenience and inclusivity to the unbanked and underbanked sectors. The EmFi industry is rapidly gaining momentum because of its reach and practicality. Numerous reports show a steep growth trajectory of the industry, implying a lucrative and prosperous future.

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The digital world is growing at a rip-roaring pace. The last few years have witnessed the robust evolution of the digital space, gradually taking most industries under its hood. Most of us who are well-acquainted with the goodness of the internet, smartphones, and the like, realize its immense reach, connectivity, and scope. Other than providing us enormous convenience, the digital world has proven beneficial vis-à-vis building connections, lowering boundaries, technological advancements, innovation, etc. 

However, as all good things come with some cons, the internet space too is dotted with negatives, one of them being cybercrimes. Cyber security is critical in the digital world for protecting one’s identity, information, finances, and even life.

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What is Cyber Security?

Cyber security involves shielding and protecting digital platforms and devices like information, data, identities, software, etc. Cyber security is achieved through various methods like anti-malware installation, well-thought strong passwords, not sharing passwords, using trusted and secure gateways and platforms, and more such options. Cyber security has become essential in the world of digitization for companies and individuals alike. 

With the increasing participation of internet users and the rising number of digital services, tremendous amounts of data are shared and transferred between different parties every minute. Cyber crimes become prevalent when there is lax cyber security. The threat of cyber crimes has increased substantially over the past few years, and as more users participate in sharing their data, the number and scope of cyber crimes are only bound to increase. 

According to the latest reports, the value of the damage caused by cyber attackers has reached $6 trillion. Cyber-attacks have increased so much that they occur every 39 seconds on average. The investment in cyber security remains low across most channels. On average small companies invest less than $500 in securing their cyberspace. 

Various ways are employed to attack individuals and companies, like phishing, virus attack, data corruption, spyware installation, hacking of passwords, ransomware attacks, social engineering, etc. Such activities have often resulted in enormous personal and financial damage, and the prime reason for the success of such activities is human error. 

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Different Levels of Cyber Security

Internet and digital tools are very diverse nowadays, implying that cybercriminals have different avenues to carry out their activities and channel their intent. Cyber security can be categorized into four segments:

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Infrastructure

Digital infrastructure is one of the most important pieces of equipment, serviced and employed by companies to create their digital business. Online businesses and businesses structured around online suites heavily rely on digital infrastructures, where lax cyber security can result in colossal damage.

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Application

Fintech platforms engage the personal and financial information of companies, merchants, and individuals. Security of such gateways and applications is pivotal in ensuring cyber security at all levels. Cyber security is incomplete if it remains one-sided. The onus also lies on application users and customers to protect their data, not share passwords, and always check for secure and reliable channels. 

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Network

Apart from the above, one of the most primitive and wide channels established for data transfer is the internet and the intranet. Securing both networks is equally important to keep the digital world safe and away from malware.

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Cloud

Cloud computing and technologies have had tremendous ground. Hacking in clouds gives cybercriminals mighty leverage over data and the vulnerable party. Protecting clouds by involving only reliable third parties is essential for cyber security. 

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Increased Risk of Breached Security

Cyber security is only as good as the weakest member in the circle. With a low level of cyber security awareness and knowledge, there is an increased risk of compromises. Some of the most common ways in which employees and individuals increase the risk of cyber security are:

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Replying to Phishing Communication

Hackers and cyber criminals send phishing communication like incentivized text messages, vague emails, etc., to lure people into replying to them. As soon as an individual replies or reacts to such phishing communication, they are scammed, resulting in a personal or financial data breach.

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Password

Sharing passwords, one-time-passwords (OTPs), or keeping weak passwords are common mistakes committed by the majority of internet users. Any lax security in passwords can provide a window for hackers and cybercriminals to take advantage of.

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Personal Information

Other than passwords, people also tend to share their personal and financial information through various channels in the digital space. If the channel’s security is lax, the user’s information is at risk of being stolen or misused.

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Data Recovery

An improper system for data recovery is one of the biggest factors contributing to data and financial damage to companies and individuals. 

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Physical Security

Other than protecting digital tools like software, applications, etc., it is also crucial to keep physical equipment like hard drives, hard discs, and more under proper physical security. 

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Best Practices

Some of the best ways of ensuring cyber security and protecting one’s personal safety on digital channels are:

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Training and Increasing Awareness

Companies should invest in training their employees to learn more about cyber security, data breaches, different types of security issues, and how to reduce the risk of cyber attacks. Individuals using the internet and other digital tools should also invest in learning about cyber security and data privacy to safeguard their identities, finances, and other essentials from fraud. 

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Data Recovery

Anyone using the internet or is potentially vulnerable to cyber crimes should set up appropriate data recovery channels. Data recovery has proven crucial in many instances and is one of the best ways to protect what is yours.

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Build Stronger Firewalls

Utilizing secure channels and strong firewalls is extremely important for the digital age. All companies engaging in digital services should invest in building stronger firewalls and only employ reliable third parties.  

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The Bottom Line

Cyber security is an integral part of the digital world which is only gaining more importance with the expanding internet and digital space. As more technological developments occur globally, cybercriminals also gain access to these advancements paving the way for more cyber crimes. Investing in proper cyber security and increasing awareness about it are some of the best ways of protecting oneself from cyber attacks. Companies should strategically plan a multilayered cyber security system that provides them an all-around shield. 

As they say, it is better to be safe than sorry.

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Fintech is burgeoning at an unimaginable pace making it one of the hottest industries. The UK, USA, China, and Singapore are world leaders in the fintech industry owing to their resourcefulness and the consummate fintech environment they capacitate.

Of all world leaders, Singapore remains one of the most enthralling fintech leaders because of its size, freshness, and limitless potential. The country boasts more than 1400 fintech organizations, making it the highest among all Southeast Asian countries.

Several factors have contributed to the immense growth of Singapore’s fintech landscape, such as:

Talent Pool

Singapore is one of the fintech hubs because of its endless talent pool that perpetually increases the benchmark for standards and success. The country’s population is home to numberless individuals who are limitlessly talented. When such people get the right environment and opportunities, it leaves little room for failure. 

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Flowing Investments

Singapore’s fintech space has taken such an enormous shape because of the incoming investments from across the world. The country focused on inviting investors and strategically ensuring returns by playing the ideal host.

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Educated Population

The Singaporean population is well-educated, implying that its reception to technology is far greater than average. Because of the highly-educated population, it is easier for the country to introduce novel technologies and intuitive systems, which would otherwise create obstacles in a population that lacks knowledge and education.

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Flair for Technology

The country has had a strong connection with technology, making it one of the most receptible countries to technological advancements. Having been in the technological battleground for many years, Singapore has become one of the world leaders in technology.

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Government Support

Apart from the talented population and technological backing, the country’s government has played a major role in the success of fintech. The Singaporean government has ensured that the country’s resources are utilized systematically by building a nation that excels in technology. 

Singapore has made its position as a leader in technology because of several factors that render it an ideal environment. Being one of the biggest fintech hubs the country houses numerous fintech organizations that are leaders and innovators. 

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9 Fintech Leaders in Singapore

Because of a highly talented and technologically equipped environment in Singapore, its shores are brimming with successful fintech organizations paving the way for futuristic growth. The nine biggest fintech firms in Singapore are:

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Advance Intelligence Group 

The leading fintech in Singapore, Advance Intelligence Group, is primarily a financial management conglomerate that parents several fintechs, each branching into a different stream of financial digitization. Atome is a leading BNPL (Buy Now, Pay Later) firm that is a part of the Advance group. ADVANCE.AI is another big player in the Southeast Asian fintech market that provides data management, fraud prevention, and other services using artificial intelligence and big data, which form its core business.

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Aspire

Aspire is a multilayered fintech firm that provides fintech services to other enterprises like payment portals, cards, financial management, etc. Aspire targets startups to equip them with technological backing and financial tools to help them take bigger leaps in their business journeys. 

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MatchMove Pay Pte. Ltd.

One of the biggest fintech players, MatchMove Pay, is an amalgamation of banking-as-a-service and fintech-as-a-service. Matchmove provides Spend, Send, and Lend services, in which it also issues virtual and physical prepaid cards for making P2P (peer-to-peer), P2M (person-to-merchant) payments and transfers, and a lot more. 

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M-DAQ

M-Daq has successfully disrupted the trading systems by providing a platform for trading and stock exchange, where any exchange-traded product can be priced and traded across national borders.

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Nium

Nium is a global platform that enables easy money movement to aid companies and banks with improved cash flows. Nium is primarily a fintech provider that supplements businesses to move their cash flows from any corner of the world, enabling them to create their digital presence anywhere. 

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Silent Eight

A key player in the fintech compliance sector, Silent Eight, provides comprehensive and customized compliance frameworks for financial institutions. Compliance plays an essential role in the fintech industry, and Silent Eight is one of the key players providing customized compliance models to financial institutions.

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Singlife

Singlife or Singapore Life is a digital life insurance provider which provides all services related to insurance policies, like purchases, reports, etc. It is one of the most reliable and biggest insurance providers in Singapore.

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Thunes

Thunes is a cross-border payment services provider that powers businesses to send and receive payments. The services provided by Thune target gig-economy firms such as Uber. Thunes provides a cross-border B2B payment platform.

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2C2P

A global payment services provider, 2C2P, powers businesses to receive payments from different channels. It offers an extensive payment network for businesses to receive their payments securely.

Several other companies are rapidly gaining momentum in the fintech space, like Validus Capital, FOMO, Hodlnaut, Fastacash Pte Ltd, Smart Karma, KingSwap, Credolab, Hatcher+, Bambu, PolicyPal, YouTrip, and countless others.

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The Bottom Line

The Singaporean fintech landscape is brimming with endless talent, financial aid, and opportunities. Singapore is a world leader in the fintech space that has immensely contributed to the dynamic topography of fintech. Technological advancements and adaptations are relentlessly taking place globally, suggesting a bright futuristic growth trajectory.

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Because of its expansive reach and technological capabilities, the fintech industry has painted the global economy in uncountable brilliant hues. Embedded finance is one such hue that has supplemented the success of many subsections within fintech. Embedded finance has undergone several stages of evolution to emerge as a necessity more than an augmentation in today’s digital age.

What is Embedded Finance?

Embedded finance, also known as EmFi, is the method utilized by non-financial organizations to provide their users with financial options, such as e-payments, money transfers, etc., on their websites and mobile applications. With embedded finance, non-financial organizations have the opportunity to integrate financial services and products with their portals and platforms.

The financial services and products are integrated with non-financial platforms through APIs (Application Programming Interfaces). APIs allow easy interaction and communication between software and applications, allowing different organizations to integrate their portals and services. 

Embedded finance has led to a revolution that has got everyone’s attention. APIs can enable all types of organizations to offer financial services to their customers for e-payments, insurance, or even credit.

The embedded finance industry has achieved a quantum leap in its success charts because of its applicability and scalability. The industry is expected to grow with a compound annual growth rate (CAGR) of almost 60% to over $7 trillion by 2030.

Some Examples of Embedded Finance

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Food Delivery Applications

Food delivery applications allow users to make payments using different methods, like credit or debit cards, online banking, virtual cards, UPI (Unified Payment Interface), cryptocurrencies, etc.

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Online Retail Shopping Applications

Apart from making e-payments using different methods for online shopping, consumers nowadays, are also offered instant credit in the form of BNPL (Buy Now, Pay Later). In BNPL, a third party makes the required payment on behalf of the customer to the merchant allowing the customer to make the payment at a later stage. 

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P2P Lending

P2P or peer-to-peer applications allow people to avail of instant credit from individuals who offer direct, small loans to borrowers for a nominal interest rate. 

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Travel Applications

Nowadays, apart from e-payment, travel applications also offer e-insurance for tickets and journeys to their customers at the point of sale. 

How Will Embedded Finance Impact the Growth of Fintech?

Embedded finance has caused an upheaval in payment systems globally. Non-financial organizations have the opportunity to integrate and offer financial services to their customers using APIs. Some of the streams of embedded fintech that are emerging as promising disruptors are: 

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e-Insurance

Insurance has always been an essential part of the commodity industry. In today’s digital age and with the rise in uncertainties, insurance has become one of the most relevant sectors in the financial system. Many non-financial industries have started offering insurance options to their customers, for example, the automobile industry is emerging as one of the top insurance providers for automobile purchases. Similarly, travel companies offer insurance for canceled trips and baggage loss. Such digital insurance is steadily gaining traction among non-financial platforms.

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e-Investments

Embedded finance has also enabled non-financial organizations to provide digital investment options. Acorns is a prime example of embedded financial investment options, which rounds up people’s change and invests it for them. Non-financial organizations integrate such services into their platforms to offer easy investment options.

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Digital Loans

BNPL is one of the most important fintech sectors rapidly bypassing traditional payment methods. Instant credit and digital loans powered and supplemented by artificial intelligence and big data are gaining ground with youngsters because of their promptness, quick verification, easy processes, and accuracy. 

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Online Banking Through Non-financial Platforms

Embedded finance is also advancing towards providing banking services through non-financial channels. With embedded banking, customers can link and update their personal information from non-banking channels, and perform other banking activities such as money transfers.  

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Best Practices for Embedded Finance

With its exponential usability, embedded finance has successfully disrupted many traditional financial methods. Because of the growing numbers, embedded finance has become a lucrative option for non-financial organizations. Here are three best practices for integrating embedded financial options in non-financial platforms:

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Compliances

All financial activities come with heavy regulations and compliances that all participants should abide by. Any breach or compromise of financial standards and regulations can cause immense damage to customers and the participating companies.

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Diversified Options

Although e-payments are widely implemented by non-financial organizations, diversifying their financial options would give companies an edge over their competitors. Companies should explore other financial services too, to tackle the growing competition in their respective industries.

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Solidified Core Competencies

There is immense pressure on businesses and companies to offer more than their competitors leading to companies diluting their core vision and competencies. As a best practice, companies should evaluate the relevance of all services to gauge whether they complement and uplift their core values, missions, and competencies or not.

Final Thoughts

Embedded finance is inundating the fintech shores with its reachability and extensive application. The fintech industry has witnessed astronomical growth in recent years by allowing non-financial companies to enter the fintech zone. The embedded finance industry is currently in its initial phase of development. There is immense scope for its usability, which promises an increasingly credible future. 

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Fintech is an increasingly competitive sector, where the level of dynamism is almost incomparable to most. One of the underlying reasons for fintech’s immense expansion in recent years has been its innovative capabilities. The pace at which technological developments are taking place is inspiring. Countless startups are continually emerging across different countries, gradually diluting the concept of fintech hubs. Such rapid evolution and developments have spiked the competition rates alarmingly.

Apart from innovation, companies are taking refuge under the umbrella of customer experience and services to tackle the turbulence of competition. Customer experience has gained importance enough to become a guiding light for fintechs. By basing their novelty and ideations on customer experience, companies can find their edge to compete in the global market. 

From mobile payments, online banking, and embedded finance to the blockchain, asset management, and investment analysis, fintech has evolved magnificently. The pandemic has acted as the catalyst, promoting fintech’s dynamism and development further.

Here are some of the methods widely applied by fintechs to up their customer experience game:

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The Role of Millenials

Millennials, also sometimes referred to as the digital generation, have tremendously influenced the topography of technological industries. Millennials have immense control over the crystallization of new ideas and innovations that eventually form the underlying structure of the fintech industry. Fintech companies are targeting the methodology of customizing their business missions to suit the needs of millennials, whose influence would eventually guide the innovation to either success or improvements.

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Personalized Offers and Prompts

To tackle the growing competition companies have devised plans to incentivize their consumers by offering personalized offers and prompts. By implementing gamification to serve customers, both fintech companies and financial institutions have immensely succeeded in attracting large customer bases to their services and products.

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The Power of Social Media

One of the strongest selling points for companies competing in the technological sector is their control and influence on social media. Social media has become one of the leading strategies that have helped numberless individuals and companies gain an audience, goodwill, customer loyalty, and more importantly, a platform that helps establish their brand. By establishing a prominent presence on social media, companies can connect with their customers on deeper levels, promote their products, missions, and beliefs through informal channels, and establish better communication and relationships with their past and potential customers.

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Enhancing Customer Control

By leveraging digitalization in their services and products, companies can give more power and control to the hands of their customers. Online banking, digital remittances, online trading, eKYC, and countless other services allow consumers to operate and transact from anywhere in the world. 

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Financial Education

With fintech gaining traction, the need for better and more efficient financial education has become vital. The fintech jargon is ever-growing, implying that users need to stay up-to-date to get the most benefit. Fintech companies are employing different methods to educate their customers to keep them well informed. Chatbots and embedded fintech education have transformed how consumers gain information about different products and services.

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Intuitive Designs and Language

One of the central ideas for enhancing customer experience in fintech is to design applications, products, and services websites with an intuitive user interface. The user interface has become an essential part of the marketing process, where applications are designed keeping the end-user in mind. The language and the interface are interactive and informal in most applications, allowing users to interact with chatbots to attain a better understanding. Such intuitive designs have proven very beneficial for top-performing fintechs.

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Customer Behavior and History

With the presence of the online sector rapidly growing, consumers now have various portals and platforms that allow them to interact directly with applications, transact, and perform other activities. Fintech companies gain leverage by collecting data about their customers, which gives them key insights into user behavior, expectations, and history. By employing technologies like artificial intelligence, fintechs can offer customized offers and prompts that otherwise would not be available.

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AI & Big Data

Technological advancements have led to the development of technology like artificial intelligence, cloud computing, and big data. Such futuristic technologies allow fintech companies to offer improved platforms and services to their customers. AI has been instrumental in advanced data analysis, enabling customer-focused decisions. Dedicated and customizable chatbots have become essential parts of websites and online processes owing to technologies like AI and Big Data.

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POS Services

Fintechs have established innovative channels to provide services to their customers. Providing embedded financial services like e-payments or BNPL (Buy Now, Pay Later) has become very popular across websites and applications. 

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Novel Technologies like Robo Advisers and Blockchain

Apart from technologies that have become a part of mainstream fintech, new technologies like blockchain, cryptocurrencies, robot assistants and advisers, etc., are rapidly gaining ground. Customers nowadays perpetually seek new and better ways to carry out their financial transactions. Blockchain technologies are ingenious, decentralized ledgers that provide very secure gateways to conduct large transactions using cryptocurrencies. Fintechs are also increasingly automating and digitizing several processes and core functions, like trading advice, investment and asset management, etc. New technologies such as Robo advisers assist users with investment and financial management decisions, which otherwise would be very cumbersome for most.

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Closing Words

New technologies are leading the innovation spectrum across different industries. Fintech has been the offspring of innovation and technology, making way for practical solutions. By automating several processes, making services available online 24*7, reducing lengthy paperwork, and more, technology is paving the way for happy customers. International remittances, large transactions, insurance plan comparisons, etc., are all possible now because of the technological competencies of fintech. Customer satisfaction has been the key driving factor for the growth of fintech, and it continues to guide fintech companies in their advancements.

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The fintech industry is one of the most successful industries of our time. The level of innovation and change employed by this industry is unparalleled. The fintech industry has proven beneficial by supplementing convenience and connectivity into our lives. From what started with credit cards and online banking to artificial intelligence and big data, fintech has created a niche in which very few industries can make a mark.

Out of the many innovations borne out of and because of fintech, using “Chatbots” is one of the most prevalent concepts in recent years.

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What are Chatbots?

Chatbots are automated communication tools employed by company websites designed to study human behavior and words and provide relevant information or solutions. Chatbot applications are augmented into websites and mobile applications as the first point of contact for viewers and consumers who require help or information.

Chatbots are made available on websites for consumers to ask questions, get navigational directions for the website, and get resolutions to their problems. The format of these platforms is in communication channels such as chats, messaging, or voice commands. The chatbots can be given an identity by naming them and defining their role within the application. 

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The Benefits of Chatbots

Chatbots are very efficient applications that have become a rage with web development. Almost all websites nowadays have chatbots installed to cater to their customers. These chatbots act as guiding tools for when customers feel lost while navigating through websites or when they have queries related to the products offered. Some of these benefits are:

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Quicker Replies

Chatbots enable live communication, thus implying quick automated replies and live chats. As soon as a consumer enters their query/question, the chatbot processes the words by running them through its set algorithms to produce relevant answers.

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Availability of 24*7 Service 

Since the internet is available to us 24*7, the presence of chatbots is also continuous. As soon as a viewer or customer opens the website, the option to communicate with a chatbot would perpetually be available.

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Saves Cost

Chatbots are ways to reduce human interaction to some extent. By automating replies and enabling 24*7 help online, companies can save on tremendous costs, which otherwise would be for paying salaries to their customer executives.

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Enhanced Customer Experience

Companies can substantially improve their customer service by offering chatbot services and their 24*7 availability on the websites. Customer experiences are enhanced when consumer queries are answered readily, without the restriction of time or place.

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Quality Data

An additional benefit that chatbots bring to companies is the data collected through their interaction with customers. Chatbots can help companies improve their websites, customer services, products, etc., by analyzing the problems reported by customers and their queries. 

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How Can Fintechs Benefit from Chatbots?

As chatbots are useful tools, most industries, like retail, travel, etc., have almost made them a mandate for all businesses. Fintech, in particular, employs chatbots in the following ways:

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24*7 Availability 

With digitalization entering the financial domain, everything has picked pace, including our expectations. With chatbots available on websites and mobile applications, companies can stay in the race without any compromises. Chatbots can quickly answer consumer queries and questions, making them an excellent service.

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Clearer Instructions and Guidance

Chatbots also give clear instructions and guidance to confused consumers by guiding them to the right page or helping them navigate through financial processes. Some companies have incorporated chatbots to singularly help consumers with their e-payment portals.

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Financial and Asset Management

Many companies have created chatbots dedicated to helping consumers manage their financial health. From real estate to the trade market, AI-powered chatbots have gained the role of financial friends that aid consumers in managing their finances and making decisions.

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Investments Analysis

Similar to financial management is the analysis of past and potential investments. Companies are now diversifying their business services to include investment planning and analysis by employing chatbots.

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Automated Fraud Detection

Fintech is a sensitive industry with access to people’s financial and personal data. Any breach of data or information can cause tremendous damage to the consumer and the company. Chatbots come in handy in this regard. AI-powered chatbots can be designed to detect fraud automatically. They are designed to read human behavior and language, which gives them the leverage of understanding if the customer interacting with them is genuine or not. Any fake accounts or interactions can be identified by chatbots right at the beginning of the customer journey.

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Conclusion

Chatbots have become a big part of the digital age. From big conglomerates to small businesses, almost all company websites are vouching for chatbots and their usefulness. The fintech spectrum particularly has witnessed added benefits with the employment of chatbots. Many companies, the world over, are exploring the different ways chatbots can be customized and used, enabling them to enhance their customer experience, and creating safe spaces for financial dealings and quicker turnovers.

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