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In-country like India gold is considered one of the safest investment options in the long run, as in case of any financial crisis it may abet a family to overcome the crisis as it’s easier to liquidate gold. Having said that, in this technology-driven fast-moving society there are a plethora of ways to own gold as an asset without bearing any making charges. One such best-fitted alternative is SGB alias sovereign gold bonds, an indubitable investment option by the government of India for individual investors. Sovereign gold bonds are like investing in mutual funds via Gold saving funds and Gold ETFs.

Furthermore, gold in certificate form with minimal risk, high-quality, and exceptional alternative to purchasing gold and inheriting the risk associated such as theft!

Let’s break down everything about sovereign gold bonds!

What Do You Mean By Sovereign Gold Bonds?

Sovereign gold bonds, simply put SGB, are the bonds offered by the Government of India in November 2015 to investors as an alternative to buying physical gold. To add, in the last few decades there has been a tremendous decline in the physical gold purchase. While SGB is considered safe as they are offered by the government as well as it keeps an eye on the export-import value of gold.

Moreover, since its launch there has been marginal amplification in investors and its value is labeled in terms of grams of gold, 999 purity. Maximum gold one can invest in 4 Kgs whilst minimum investment is 1 gram per financial year. SGBs are hassle-free along with easily manageable in contrast to physical gold. The term for SGBs is 8 years with the option of exiting after 5 years. The interest rate offered to investors half-yearly is 2.5% per annum.

Furthermore, SGBs are issued in varied tranches by the RBI during the financial year. Plus if you are choosing the safest investment option, purchase SGB from SEBI authorities’ broker or agent, online platforms and banks. To add, for an investor purchasing the bond via an online platform an additional INR 50 per gram discount is granted. There are three forms in which SGBs can be procured: physical, dematerialized, and digitally. Besides this, the prerequisite for SGBs is a PAN card. If investors don’t have PAN cards the investment is not permitted.

What Are The Some Key Features Of SmartSGB?

SmartSGB is one of the leading curated platforms designed for technology-driven new-age banks. With SmartSGB financial distributors can easily manage multiple clients’ investments in SGB. So, create wealth, value, and relationship partners with SmartSGB Sovereign Gold Bonds Financial Distribution.

Get complete access to the platform along with handling myriad activities such as investor ID mapping, Sovereign gold bond mapping and file import, one-click option to view and download certificate, transaction file import, and SMS & Email alerts with SGB certificate.

SmartSGB is the technology-driven support system for financial distributors to various activities on the go such as core banking system (customer data propagation, fund transfers, Lien marking/unmarking, and Bank account details), RBI E-kuber integration (Transaction export, certificate import, and transaction response import) and system integrations (Net banking and mobile app). Not to mention, SmartSGB will act as a central repository to save and store crucial Sovereign Gold Bond information, helping financial distributors reduce cost, increase accuracy, larger clientele, and most importantly enhance productivity.

What Are The Top Advantages For Banks Investing In Sovereign Gold Bonds With SmartSGB?

• One-Stop-Solution

With SmartSGB end-to-end investment is easy including the purchase and redemptions of bonds.

• End To End Security
  

SmartSGB is the only integrated platform that offers financial safety to its financial distributors.

• Cutting-Edge Technology
  

SmartSGB offers the best technology with core banking and 3rd party systems. Along with a comprehensive RBI report, RBI e-kuber, order details report, and SMS alert with SGB Certificate.



• Scalable Information
  

From mid-2013 to mid-2017 interest rate has witnessed a decline. Additionally, the new monetary policy framework has been closely associated with inflation levels. The dwindling GDP growth trend must have boosted confidence among banks for continued low-interest rates. SmartSGB offers a scalable solution to financial distributions.

• Robust Updates

With SmartSGB, you get the latest alerts and price notifications along with the increasing opportunity for revenue generation.

 
 
 
Conclusion

If you are scouting the web for the safest, secure, and hassle-free way to invest in Sovereign gold bonds digitally, you are in the right spot. Enjoy asset diversification; multiply your happiness by investing in SGBs with SmartSGB from Winsoft technologies.

We proffer multiple investments (Netbanking, Mobile App, and branch) along with a dedicated dashboard to track your investment growth. From purchasing to the redemption of SGBs everything is in a single click with SmartSGB. Winsoft Technologies is a name trusted by India’s leading financial distributor, we offer a hassle-free online investment experience.

Digitization is now all ubiquitous. It has touched almost all industrial gamut, including banking and financial services. In India, the financial ecosystem has witnessed multiple financial inclusions. For example, the introduction of the biometric Aadhar Card to the Unified Payments Interface (UPI) has steered unprecedented digital disruption in the traditional Indian banking scenario. The introduction of Direct Benefit Transfer or DBT by the GoI through apps like PM-SVANIDHI and PM-KISAN and the development of the AA or the Account Aggregator regulatory framework by the RBI has further catalyzed the credit industry in the country.

The fact is that in this new-age era of digital transformation, digital banking and the growth of Neo-banks are coming up as stiff competitors to traditional financial institutions that are still working with legacy systems. Neo-banks or digital-only banks are fast becoming a force to reckon with their innovative services as they have already started to garner impressive market share in the industry.

It’s not surprising that almost 205 million Indians have an account in a digital-only bank. By 2027, the number is expected to rise to 397 million.

Changing the face of Fintech, Neo-banks offer an efficient and cheaper alternative to customers vis-a-vis traditional banks. With the help of new-age technologies, they take personalization to a different level. The technological revolution has heralded a completely new era. Here, banks cease to exist in the real world or let’s say that banks no longer have physical branches. Everything is in the online space. Neo-banks are digital banks offering almost all the functionalities of a traditional bank except that they do not have a physical presence. While the trend picked up during the pandemic and the subsequent lockdown, it is now a post-pandemic reality. These digital banking units offer services from instant loans to fixed deposits, savings and current accounts, fixed deposits, and more. All of these are offered via an app and in partnership with a registered bank.

They leverage technology and artificial intelligence to provide personalized services to customers while minimizing operating costs. Since traditional banks use legacy systems, they are not as agile to meet the needs of a tech-savvy generation as they should be. Neobanks, on the other hand, are empowered as their services are based on innovation, making them quicker. Not just that, neo-banks in India are working with the MSME sector and retail customers – two niches that are typically not on top priority for conventional banks. Considering the convenience factor, this one is a big hit with end customers and is expected to grow further from here.

Let’s see how different technologies are transforming the financial sector in India:

API-led banking

The Reserve Bank of India launched the RTGS and NEFT almost ten years back, after which came the decade of IMPS launched by the National Payments Corporation of India. Post this. The Indian financial industry has witnessed the emergence of API-led banking, where an API or Application Programming Interface works as the middleman to ensure that the communication between digital banks and third parties is seamless. With APIs, banks and third parties offer safe services to customers in real-time. There are innumerable examples of this technological functioning – money transfers using mobile wallets, checking credit scores, viewing account balances, applying for loans, etc.

Self-Service is the new way of delighting customers.

The age of queuing up in front of bank counters to deposit or withdraw money, fill forms, etc., is long over. Today, technology has empowered new-age banks to offer enhanced self-service choices to their customers. These services are not merely limited to basic tasks. Still, they enable customers to perform numerous advanced banking-related tasks like applying for loans, buying insurance, opening new accounts, and more in this new era. As a result, customers today are in the driver’s seat where managing their financial position is concerned and better informed to make crucial personal financial decisions.

Robotic Process Automation

 

Use of voice commands through Voice Bots. We all know of chatbots as more and more banks now rely on them to help address customer queries and resolve them faster. However, as the progression continues and technology advances, voice assistants will come to the scene, replace chatbots and enable customers to use direct voice commands to carry out multiple banking-related tasks. A typical example is when the voice bots ask the customer to change his pin or open a new account, all facilitated through voice commands without typing. All of this is possible with voice recognition technology that syncs with AI and NP. Some of the other technology-bound processes in line are thumb impressions, face and iris recognition, biometric authentication, and more.

Data Analytics

Data is at the core of enhancing customer experiences, and the banking sector is adopting technical tools and methods to get better insights. Today, financial services use real-time actionable data analytics to offer competitively-edged services to customers with better decision-making powers. The data also helps bankers upsell, cross-sell, plan upcoming products and offerings, and more. Another advantage is how the analytics help banks offer personalized services to their customers.

Pros of Neo-Banks

• Neo-banks have fewer regulatory and credit risk issues
• They offer premium services at low costs
• The convenience factor of Neo-banks is also way higher than traditional banks as all operations happen via an app
• As banks work using digital means, the service speed is also faster

Cons of Neo-Banks

• Neo-banks have regulatory issues as the RBI is yet to recognize them fully
• In the absence of a physical branch, some customers feel that these banks are impersonal

Conclusion

Technology is bringing about revolutionary changes in the financial sector. The sector, thankfully, has been very adaptive in adopting these technology gamuts. The focus is on the customer, and digital banking and automation are the keys to personalizing the entire banking process.

Over time, the National Pension System (NPS) has undergone modifications. It has gone through many versions, ranging from withdrawal policies to taxes and from selecting fund managers to asset allocation. Recently, new investing standards were established, providing pension fund managers with a more expansive canvas on which to work.

The new investment criteria would allow pension fund managers to make investments in (FPOs) (IPOs) and offers for the sale of enterprises. Apart from that, the option for investing in pension funds will be expanded, and fund managers will be permitted to make investments in firms listed on the BSE 200 and the NSE 200 indexes.

Basket Widened

The Pension Fund Regulatory and Development Authority (PFRDA) has changed the investing guidelines for its pension fund managers, which may be seen here. Before today, pension fund managers could invest in any companies that were members of the futures and options (F&O) basket and had a market capitalisation of at least Rs 5,000 crore, as long as they met the capitalisation criterion. This essentially limited the investing universe to a little more than 100 equities, the vast majority of which were large-capitalisation companies.

This basket has now been expanded to include the top 200 equities in market capitalisation. NPS fund managers will now have the freedom to diversify their portfolios outside large-cap stocks.

More Investible Concepts

As the fund’s size begins to rise, fund managers may have to go farther into the mid-cap sector in quest of more investible opportunities. As a result, investors may anticipate fund managers to capture a sizable chunk of the mid-retirement cap pie for themselves.

Faster Development In Midcap Companies

Mid-cap firms have a larger runway for rapid expansion than large-cap enterprises. According to traditional knowledge, Mid-cap equities tend to outperform large-cap companies over the long term. Subscribers will benefit from the increased possibility of return. NPS stock plans have failed to beat the market over several years, mostly because they have been confined to the large-cap group.

According to industry experts, the launch of mid-cap stocks should not cause concern among investors. It should be beneficial to NPS subscribers over a longer period. The introduction of mid-cap stocks will almost certainly result in a greater disparity between various pension fund managers.

Because of the emphasis on large-cap stocks, equity strategies among fund managers are becoming more similar. However, if they begin to diversify into mid-cap stocks in varying degrees, the fund profiles will take on various forms. This may necessitate subscribers to keep a closer check on the overall portfolio structure.

Long-Term Savings With

NPS is regarded as a long-term savings tool by industry experts. According to them, investors with a time horizon of more than seven years will be able to ride out the whole market cycle, which will be sufficient to reduce the risks associated with mid-cap stocks. In addition, there are some high-quality companies within the midcaps. Lengthy-term investors with a time horizon of 10, 20, or more years might profit from increased capital accumulation over such long periods.

A large public awareness campaign to adequately explain the guarantee and its long-term cost may also be necessary to avoid the creation of unexpected and inaccurate public expectations—especially given that the NPS is a government-sponsored scheme—to prevent this from occurring.

Investing in IPOs Is An Option

Pension fund managers have also been granted the authority to invest in initial public offerings (IPOs) that reach a specified market capitalisation requirement. The NPS will accept investments from companies whose full-float market capitalisation (based on the lower band of the IPO issue price) is greater than the market capitalisation of the 200th firm.

NPS fund managers will be authorised to target initial public offerings (IPOs) with a market capitalisation of more than Rs 21,200 crore at current market values. This provides pension fund managers with an additional option for selecting high-growth investment opportunities.

Effects of the FDI Limit

The foreign direct investment (FDI) limit has also been raised from 49 per cent to 74 per cent as a result of amendments to the Pension Fund Regulatory and Development Act. As a result, the existing seven pension fund managers will be able to sell their stakes to foreign partners, and the foreign direct investment limit will be 74 per cent for new fund managers coming through the On Tap Licence.

Following the rise in the foreign direct investment limit, foreign investors’ preference for pension funds will grow, resulting in long-term profits.

Conclusion

A little underperformance in your NPS fund every year might accumulate overtime to produce a significant underperformance in the long run.

Because of the influence of long-term compounding, the ultimate corpus might change greatly from the initial corpus due to these return discrepancies. As a result, you should assess all long-term investments once a year, like NPS portfolios, just as you would with mutual fund schemes.

As there is sufficient historical data accessible at this time, it is possible to analyse and compare the performance of your NPS funds with the performance of other investment managers. Based on this comparison, it is simple to determine whether or not you need to replace your NPS fund manager.

Investments have always been done with a set intention to generally maximize returns and minimize risks. However, there can be other more specific goals. The goals get more specific when one is planning for investing for stable and continuous monthly returns or wealth creation over the long term and so on.

Nowadays, there are multiple investment options in the market, but still investors struggle with the dilemma of choosing one investment option over another. So, as an investor where would you choose to invest between the mutual fund and fixed deposits? Not sure? Well, we have got sorted for you.

Mutual Fund vs Fixed Deposit

Both mutual funds and fixed deposits are equally popular and trustworthy choices among investors. Each of these investment plans is one of a kind and provides investors with promising returns over a period of time.

But before investing in either of these investment plans, it is advisable to make a solid comparison. Thus, we have cumulated all the possible differences between Mutual Funds and Fixed Deposits. This list of differences will make the picture clearer and will help us pick the most attractive form of investment.

• Returns – Fixed deposits offer investors a definite and decided rate of interest for a predetermined period of time. This assures a fixed deposit will accrue a fixed number of returns for that certain duration. On the other hand, an investment in mutual funds could guarantee much higher returns. Mutual funds have can hold more potential in terms of returns as the investment is based entirely on the market standing of the stocks in the portfolio.
• Costs – Although mutual funds can promise greater returns but investing in them comes with certain costs. Mutual funds involve a certain fee criterion that has to be paid to fund managers who will take care of your portfolio. Whereas investing in fixed deposits does not require such a fee criterion as it does not involve any intermediaries to handle the process.

• Risk- The best part about Fixed deposits is that they are essentially zero-risk investments, as investors already know what their returns will look like in over time. The rate of interest is definite in fixed deposits, it is unsusceptible to market changes, therefore investors are guaranteed a fixed return after a fixed period of time. On the other hand, mutual funds are susceptible to the market performance and volatility. But the amount of risk involved is mitigated by the spread of risk over a range of stocks. This further gives a chance to the investor to gain more when the market conditions are favourable. But one has to be careful throughout as there can be a considerably low returns if market is too volatile and does not look like as you would have expected.
• Premature Withdrawal – Investors who would want to go for a premature withdrawal from their fixed deposits will have to pay a penalty for doing so. Even if the penalties are levied, the investor would also have to forfeit a portion of the returns that would have been expected. On the other hand, mutual funds allow premature withdrawals as long as the minimum holding period is completed. While there is no penalty involved, there will be an exit load charge of around one percent of the fund amount but only if a withdrawal takes place before the holding period gets expired.
• Taxation – Equity and hybrid funds are regarded as short-term only when the holding period is less than 12 months and long-term if the holding period is more than 12 months. When debt funds are held up for a period less than 36 months then they are short-term, whereas a holding period of 36 months and more are considered long-term funds. Equity mutual and hybrid mutual funds that go beyond Rs.1 lakh are taxed at ten percent and are termed long-term capital gains. While the equity mutual and hybrid mutual funds that are valued at less than Rs.1 lakh are taxed at fifteen percent and are termed as short-term capital gains. The case of fixed deposits is completely different from others as the interest that an investor earns on their investment is taxed according to the tax slab the investor belongs to or comes under.

Now where to invest?

Now you must be wondering which is better, then for that, you will have to ask some questions like what your requirements, goals, and the kind of risk you are ready to take. Once you get answers to such questions, you will be able to use the differentiation between mutual funds and fixed deposits.Most importantly, you as an investor must be clear about your aim of investing. If you are looking for continuous monthly returns, then a fixed deposit would be the right choice as it promises a monthly return option. However, Mutual funds can offer a higher rate of returns on your investment depending on market performance. But you have to prepare for adverse and unfavourable market conditions that will result in negative or lower than the expected returns on your investment.

Conclusion

In conclusion, it can be said that investing is all about finding a balance between mutual funds and fixed deposits. To find the perfect balance you must be determined about your goals and risk appetite and only then you can expect the desired returns. So, are you ready to invest in mutual funds or fixed deposits?

The InsurTech sector is already soaring in 2022. Over the last several years, the insurtech industry has seen massive transformation as the industry undergoes a much needed and long overdue makeover and modernization. The improvement of corporate operations has made modern technologies such as artificial and visual intelligence common.

Many organizations are striving to modernize their operations by using new technology, thus the insurtech industry is anticipated to continue to evolve in 2022 as well. In the meanwhile, smaller firms might take advantage of the most recent developments to get an advantage over the more established ones.

Here are a few insurtech trends to keep a watch on in 2022 as this booming business advances with massive development ambitions.

Spotlight of This Year: Digitalisation

The goal of insurtech has always been to streamline time-consuming procedures. Nevertheless, as insurance firms attempt to supply more services digitally, the Covid pandemic has fostered the emergence of insurtechs that offer rapid and simple digital claims via online platforms

A shift from manual claims settlement to digital is expected to continue fast in 2022, as consumers increasingly want insurance with simple-to-use digital services. This is not only for the back-end operations.

The insurtech sector is receiving record investment because giant insurance firms that are failing to innovate are teaming with dynamic insurtechs to provide new services for customers. Insurtechs assist insurers use digital technology to enhance customer service, which means claims are paid more quickly and with less difficulty as more data is collected to produce ‘Big Data’.

IoT in the Insurance Industry

Physical devices are linked to the internet through the Internet of Things (IoT) to exchange data. Insurtech is relying on IoT to enhance many of the old insurance procedures, and this has become an essential part of the business.

This year, new and enhanced applications will be released to the market to aid in the settlement process. Additionally, apps will lead the way in addressing customers’ requests for fast and simple methods to resolve claims, as the digital claims settlement trend continues to rise.

Many applications capture real-time data, such as those that allow policyholders to submit images of damage after a vehicle accident in real time. In 2022, insurers will be able to address the demands of their consumers more effectively thanks to the increasing intelligence of these applications. As more and more real-world data is put into these applications, analytics will continue to improve, which will have a significant impact on the future of insurance.

Customer-centricity

The increased need for digital processes goes hand in hand with the desire to enhance and prioritize client experiences. A tailored approach to service is a vital component of a customer-centric business model.

Demand for AI to power up business choices is on the rise and expected to continue to rise through 2022. Customers’ vehicle type, age, and location may all be used to construct customised plans for each individual consumer using simple AI systems. There is a positive effect on client acquisition and retention since they only pay for the things they truly need.

Chatbot AI technologies may be used by insurance companies to customize their client service. To ensure that the discussion between the consumer and the chatbot is as natural as possible, it employs machine learning.

Distributed Ledgers and Blockchain (DLT)

Customer dissatisfaction with middlemen like brokers and agents is nothing new. Technology has made it simpler for enterprises to conduct business directly with their consumers rather of relying on third-party services. Companies may apply this strategy at a lower cost, which results in lower rates for clients.

During the year 2022, the usage of blockchain and distributed ledger technology (DLT) will be on the rise. When it comes to creating a digital log of transactions that can be shared across a network of computers, nothing beats blockchain. There’s a lot of talk about blockchain right now in the cryptocurrency industry, and those ramifications extend to a wide range of industries, including insurtech.

Blockchain technology may be used by insurance service providers to reduce administrative costs, verify third-party payments, and add a layer of fraud protection. Claims processing, cybersecurity, and payment timelines may all benefit from the use of Distributed Ledger Technology (DLT). In the meanwhile, the utilization of public ledgers and enhanced cybersecurity standards in blockchain may assist to develop confidence.

From Traditional to Cloud Computing

A cloud-based technology overhaul is long overdue for the majority of insurance companies. Firms will be able to create innovative, personalized goods and improved customer experiences as a result of this transformation. It’s because cloud computing is excellent at sifting enormous data sets and making sense of them, and then sending the findings back to insurers. Cloud-first companies will be in a better position to operate seamlessly as infrastructures throughout the globe continue to develop.

Conclusion

The previous several years have seen a lot of upheaval and turmoil in the globe. Not all of this has been good, but in other situations it has ignited the fire for innovation and digital transformation.

Insurtech advancements will enhance your experience as a customer and speed up and simplify online transactions. For many people, the start of the new year and the introduction of new technologies may inspire them to make a change in their lives.

One sector that has witnessed drastic transformation is undoubted- the banking sector. And the key catalyst in the role is technology. Digital transformation has pushed the banking sector to a whole new next level; digitalization is here to stay but the need for physical branches will continue to be relevant for consumers. There are certain scenarios where users prefer going to banks physically. So, considering the changing behavior of new-age customers banks should offer digital as well as physical services to its customer to deliver an exceptional customer experience. One such approach banks can adopt for maximizing the benefits of physical branch and digital abilities is in the shape of Phygital Banking.

Let’s dig deeper to know more about the new way of banking- Phygital

First, what is Phygital Banking?

The word Phygital is coined by combining the two words i.e. Physical and Digital. Simply put, Phygital banking is a type of banking where physical branches reap the advantage of digitalization across various channels. In this disruptive model, both humans and technology are employed to serve the customers.

The retail sector has embraced the Phygital ecosystem i.e. At Amazon Go supermarket, customers go physically to check products and make payments via smartphone.

So, Why is Phygital Banking Required?

As the pandemic has standstill our life but after vaccination life is coming back to normalcy. Due to the global pandemic, people choose the digital landscape for the transaction and it has led to a surge in usage of digital banking. Covid-19 has accelerated the Phygital experience for customers. And their expectations are changing quickly as they want seamless and unmatched Phygital banking.

With that being said even the new age customers are also reluctant to put their hard-earned money on a completely digital bank with no physical branches. So, the bank should equip themselves to offer digital customers some real-time solutions for their issues.

According to Fintech Magazine, a Barclays report quoted that 46% of Gen Z customers surveyed said they would visit the physical branch to explore more products or services before investing or making a purchase. These data suggest that for a customer both physical and digital elements are imperative. In the physical environment, they can discuss the products and services and later digitally they can purchase them.

Additionally, the banking system with digital capabilities such as biometrics, APIs, machine learning, and other business aspects can abet a bank to transform its physical difficulties into Phygital chance. Not to mention, with the Phygital approach a bank not only gains a competitive edge over brick-and-mortar banks but also against digital competitors.

Here Are Some Ultimate Advantages Of Phygital Banking

1. Enhances Customer Experiences

   The new-age customer wants a quick and instant process, no matter if it’s digital or physical. Furthermore, Phygital banking examples proffers such feasible solutions to them. They can easily choose the option to engage with the banks to avail services such as voice calls with digital bankers or using digital services to solve their queries.

2. At Par Customer Satisfaction

   Banks have those customers also who aren’t able to use digitalization so for them Phygital banking has the solution. They can visit the physical branch to get the queries solved; the bank can educate them on digital facilities also. This way it leads to higher customer satisfaction.

3. Cost-Effective
   

   Another astounding advantage of Phygital banking is it abets in reducing overhead costs and amplifies customer value. Moreover, numerous repetitive tasks including both backend and frontend have been automated by the Phygital banking approach. Besides this, the time required for processing documents or issuing cards, and opening a bank account has been reduced by this mode of banking.

4. Access To Vast Customer Base

   People in rural areas are still reluctant for digital banking; the reason could be a lack of authentic and correct knowledge. However, the best-fitted solution in this scenario is Phygital banking. To add, globally open banking regulation is being discussed for banks to be more secure, reliable, and most importantly transparent. With Phygital banking, the banking space is connected with a wider audience, helping the banks connect with the right prospective customer giving them the right banking products.

5. Bank Customer Association Is Improved

   Phygital banking offers a solution to the customer at both the physical as well as digital levels. This facility abets in strengthening the relationship with the customers. Bank branches create a sense of trust among the customers whereas digital services offer a fast resolution to their queries, this enhances customer experience.

Conclusion

The advantages of Phygital banking are strong and cogent. It could be the most accepted and secure mode of banking for customers of every generation. Banks are required to leverage the trust of the physical branch and the power of digital transformation. Any bank that mingles both the services in the correct manner could create future-ready banks along with saving costs, the scale at a fast pace, integrate a customer-centric approach, and competitive edge.

To put it simply: the concept of Phygital banking is capable of furnishing a plethora of benefits to its congregating users including enhancing customer experiences, bestowing customer satisfaction, access to a wider market, improving the customer-bank relationship and so on. This is why; the modality is often considered the future of banking and is likely to dominate the contemporary market.

In the last few years, the wealth management industry has witnessed a paradigm shift i.e., millennial’s participating in the wealth wagon, changing customer expectations, and most importantly digitalization. Additionally, the equity market went to new heights in 2021, alluring first-time investors; approx. 14.3 million new Demat account opening in 2021 validates the wealth management soaring highs.

With that said the new- age investors are more informed and tech-savvy along with having access to the pool of knowledge and expertise. They plan their finances, think differently, and act with different attitudes as compared to old investors. So, wealth management firms need to amplify their digital transformation journey along with paying equal heed to cybersecurity, digital currency, customer-centric approach, and the Internet of Things (IoT) to give its customer a superior experience.

Let’s delve deeper to know top wealth tech trends 2022 to watch out.

• Digital Assets

  Cryptocurrency alias digital currency since its launch has become widely popular among the millennial generation and their preferred form of investment. First official cryptocurrency – Bitcoin has reached a record new height of $69000 with other coins such as Ripple and Doge witnessing the surge in popularity. Countries around the globe are slowly accepting and adapting to this digital asset. Plus, there has been an upward trend in CBDC (Central Bank Digital Currencies). So, this wealth tech trend is here to stay! Wealth management firm needs to provide innovative ways to the customer for crypto investment, by leveraging the power of Blockchains.

• Virtual Advisory Tools

  Indisputably, with each passing day, we are persistently moving towards the path of being digital. Experiencing it every day in the shape of remote access, online shopping, watching entertainment content, or even taking doctor’s assistance virtually with telemedicine are some of the perfect examples. To put it simply: every aspect of our lives can be readily overseen digitally or virtually today. All thanks to the incessant progression in technology that has played a significant role in making this world a better place to thrive.In continuation; since our dependency on digital or virtual assistance is immensely soaring, including financial life in the same list is not wrong. The explosive growth of fintech has led to the emergence of an eclectic range of exciting technologies. Their ultimate aim is to enhance the existing ways of delivering services by embracing the strategy of automation. All this is done with the succoring of virtual advisory tools that have been in a trend ever since their virtues came into lime-light. From banking to mortgages to insurance, digital technology has ensured a seamless experience between financial advisors and their clients. The volume of solace this approach provides is worth applauding. Investors are highly persuaded by the concept of remote technologies. That’s why; they prefer engaging with a live financial advisor virtually while sitting at the convenience of their households.

• API Deployment

  To many APIs may appear as a broad term about which they might have heard at some part of their lives. However, it’s deeper deets they might not be wary of.Throwing light on this modality; an API sets the path for two divergent technology applications to communicate to each other and furnishes the provision of data sharing. This abets to better the overall user experience and value of both.

  One of the ultimate benefits of API is; by integrating this methodology, financial advisors get empowered to subsume data from additional client accounts into several prevailing financial planning portals. From here, the professionals could communicate with clients effectively to better their experience.

• Customer-Centric Technology Approach

  Any sort of technology implemented should fundamentally focus on delivering a superior customer experience. Irrespective of the industry, a similar approach is the imperative need of the hour. The same is applicable in wealth management also. If your patrons are getting impeccable services, they won’t hesitate to throw open their wallets in the future too. In the case of dilapidated services, the clients have several options to choose from.

  

  This is why; the rapid and ongoing digitalization has helped in the development of several strategies with an aim to personalize client experience. The previous old-school approaches of in-person assistance by financial advisors have seen a relentless decline. What’s more, contemporarily more and more people are realizing the virtues of seeking online help. Many of them have their individual social media accounts. They don’t mind posting their queries through these online channels. Therefore, wealth management companies should look to invest in employing digital marketing strategies for an effective customer-centric technology approach.

• Internet of Things (IoT) and AI

  When it comes to IoT, it principally describes the vast universe of embedded sensors that help in efficacious communication between consumers and companies through the internet. Its vogue has seen a climb in the last few years, especially in the wealth management sector.To comprehend the inside deets on how IoT and AI are beneficial in wealth management; these modalities enable enterprises to analyze client and market data to envision specific patterns. As an instance, analytics engines could examine a client’s bank account transactions in detail. Based on this, real-time automated advice could be furnished to the user. The detailed information fetched would be highly advantageous for the patron to avail better financial planning services.

Conclusion

Technology will continue to influence the wealth management industry in the coming years. The only prerequisite for a wealth manager to strive for success is accelerating their technological transformations, shifting the load to wealth tech providers. However, despite the aforementioned trends, exceptional customer experience will remain the battleground for Wealth Management firms.

Without a doubt, the Covid-19 pandemic has pushed and reshaped myriads of businesses and industries to hop on the digital transformation journey. Additionally, embracing technology is inevitable, especially for the BFSI (Banking, Financial services, and insurance) sector after the shocking market condition, regulatory challenges, hybrid work culture, and lockdowns globally. The next few years are going to be challenging and critical for businesses, we will witness which industries are able to back the ever-changing business environment.

So, to fulfill the pushing requirements of the tech-savvy customers the BFSI sector future will significantly depend upon digitization, backed by innovative and new-age technology including APIs, allowing customers seamless, fast, and secure transactions, and most importantly interoperability of the banking systems.

Here are some eye-opening statistics answering the next-gen banking ecosystem’s question for automation in the banking industry i.e. “adopting fintech is worth or not”!

• Annually 500+ fintech companies are launched whilst they receive $50bn in funds

• Amid the Covid-19 pandemic, the global fintech investment hit $44bn

• By end of 2022, the fintech is projected to hit $310bn

The future is millennials and Gen-Z who are ready to spend extra bucks for greater service and convenience.

Few Trends That Are Here To Stay In 2022

NeoBanks

Also termed as “the next big thing in banking” – are bridging the gap between new-age digital customers and traditional banks. NeoBanks are banks with no physical branches instead have a digital presence. These financial institutions leverage AI and other innovative technologies to offer customized banking services to customers. Plus, NeoBanks are working on cutting-edge technologies and pushing traditional banks to revamp themselves to deliver at par customer services.

Artificial Intelligence and Machine Learning

There are plethoras of banking aspects such as traditional models, banking procedures, and legacy structures which are now being reshaped by AI. It has empowered the BFSI sector to meet its vital goals including amplified customer experience with virtual assistance, operational efficiency and optimization. Moreover, the new-age machine learning algorithms abet in processing data at a faster rate, credit fraud detection before happening, and reporting any credit fraud accurately to banks and customers in advance. On top of that, AI in banking and machine learning not only save time by extracting relevant data but also help in personalizing clients’ experiences, eventually helping BFSI in revenue growth.

According to the IDC report, after the retail sector, the financial services will be second to spend on AI closely 14% between 2021 and 2025 and the compound annual growth rate will be 24.5%. Hence, as we move further in 2022, the use of AI and machine learning will increase.

Big Data

The primary reason for big data analytics growth in the BFSI sector is the swift and voluminous increase in data through different modes of payment. So, big data empowers the BFSI sector to strategically manage unstructured information along with ensuring cyber security. Moreover, with instant predictive analysis and clarity, financial institutions can offer their valuable customers personalized investment options and product options. Not to mention, with big data not only relevant information is shared with the clients but also helps in protecting their sensitive information.

Blockchain

When it comes to throwing light on Blockchain, it has emerged as a successful technology ever since it first appeared. The platform underpins cryptocurrency and carries the potency to revolutionize the world economy.

Delving a bit deeper; Blockchain is fundamentally a distributed ledger that garners pivotal pieces of information or facts. The technology is principally employed to accumulate an immutable record of ownership and enable the transaction of the asset amongst distrusting parties.

Further, Blockchain technology in banking has become the talk of the town since its evolution as it delivers the following perks to the users:

• Transparency-One of the reasons for Blockchain technology getting famed is its powerful ability to deliver transparency. It empowers its huge set of users to have access in real-time by creating a public record of activities in the ecosystem.
• Decentralized- Blockchain technology boasts about being decentralized. In simpler words: it is not governed by any authority.
• Enhanced security- This impeccable feature ensures that any sort of alterations or modifications with the system is simply not possible.

RPA (Robotic Process Automation)

RPA copies and reproduces human actions to procure data in a faster manner. To add, this type of technology innovation is invaluable for the BFSI sector to maximize its operational efficiency, enhance customer experience, and amplify profitability. According to Capgemini, “RPA is able to generate 25%-50% cost saving via automation of data-rich mundane tasks, abetting to improved processes”. Also, RPA in the BFSI sector reduces errors by helping overburdened staff clear backlogs as well as eliminating repetitive tasks like data extraction, filling, and documentation. Besides this, RPA in banking has assorted functions that can streamline customer operations by shortening the call durations and automated response for faster resolution.

Voice And Chat Bots

Digital transformation and automation bring myriads of advantages to businesses and their customers which includes services from voice bots. Plus, bots can significantly increase customer services i.e. voice and chatbots can save up to 4 minutes in a query, delivering instant responses and enhancing customer services. Moreover, bots are seamlessly increasing customers’ banking experience – they offer instant answers which fasten the response time. Besides this, unlike traditional customer services bots are available 24*7 round the clock delivering exceptional customer experience and most importantly converting the potential visitor into leads.

Additionally, digital as well as traditional banks should opt for bots solutions to offer customized services and products to the customers. Along with helping agents to work on tasks that matter the most for the business.

Conclusion

Technology and data will play an imperative role in the BFSI sector irrespective of financial institution size and location. So, those who will embrace these new-age technology advancements will likely have more opportunities to compete in the market, grow their shares, and drive more profit.

The days are gone when masked intruders used to rob banks with weapons; in the era of digitalization robbing, a bank is just a few clicks away from the tech-savvy cyber-criminals. Hackers need only the loophole in the banking security mechanism- they can steal money as well as critically sensitive customer data which can further be misused in numerous ways.

Having said that, digital transformation is a prerequisite for every financial institution to strive for success in the hyper-competitive banking environment, as digital services abet in enhancing customer experience. There are myriads of services including premium payments, utility bills payment, online purchases and much more offered by financial institutions to its customers. However, the sector is vulnerable to cyber-attacks such as DoS attacks, phishing attacks, malware, hacking, spear-phishing, etc where hackers not only steal money but also vandalize the bank’s reputation. Hence, the best-fitted resolution for banks to be more agile, flexible, and most importantly scalable is an expert software testing service, Cloud computing, or specifically, Cloud!

So first, let’s delve deeper to know what cloud computing is all about!

Simply put, Cloud computing means delivering diverse computing services like processing power, software solutions, and data storage according to requirements, over the internet. In addition to this, the burden of owning complex IT infrastructure is eliminated making financial institutions future- ready. Cloud computing in Banking has acted as a catalyst for banks to embrace digital transformation, a key for their digital success!

Cloud Computing – Future Of Banking

Many industries are refined and reshaped by cloud computing, financial services being no exception. However, before IT teams and banking executives initiate the process of migrating to the cloud, one essential question that bank leaders call to be answered: is Cloud computing safe or not?

The answer is: Yes, cloud solutions are safe for banks. To add, with the right tools, expertise, migrating systems, and detection systems in place, cloud computing can offer safe and secure configurations to every bank globally, irrespective of the size. Additionally, when it comes to security in the cloud ecosystem, primarily it’s with cloud security or in simpler terms cybersecurity. After all, keeping confidential data and systems protected is essential for thriving financial institutions.

According to the CAGR report, the cloud security solution will witness 33.1% of growth in the banking sector. Also, a survey conducted by IBM states that 91% of financial institutions are actively using cloud services today or plan to use them in the next six or nine months – double the number four years ago. In fact, in today’s digital landscape banks encounter ever-changing customer’s behavior, innovative workspace dynamics, and the continued augmentation of data. So, cloud computing solutions have been proven in the past helping banks achieve unprecedented success.

 

Advantages Of Cloud Computing In the Banking Sector

• Enhanced Data Security

Data breach not only leads to huge monetary losses but also significantly sabotage a bank’s reputation. If one such incident happens it may cost a fortune as well as fine to the organization. Unfortunately, the majority of the data breach occurs within the premises systems, debunking the myth that migrating to the cloud is not safe. In short, the innovative, cutting-edge tools and resources offered by the cloud are more secure and flexible than on-premise systems provide. The banking cloud security by the cloud provider is undoubtedly more advanced, flexible, and secure than their in- house hardware and software.

• Say No To Mundane Tasks

Another astounding benefit of choosing a cloud is eliminating the repetitive tasks that often consume the IT team time. Once the data is secure in the cloud the next best thing any bank would require is saving time for their valuable resources. Furthermore, when banks choose cloud solutions and there is no physical set-up on the premise this ensures the workforce is dedicating more time and energy to the tasks that matter the most for the organization.

Moreover, no matter whatever the size of an organization it’s reported that the mundane tasks often drain more than 50% of the IT team’s time. Therefore, with cloud computing solutions your employees can focus on the value-adding task that will help the bank to strive for growth.

• More Agile And Innovative

The financial ecosystem is rapidly moving towards digital transformation and migrating to the cloud has become more imperative than ever. With cloud solutions, banks can streamline their complex processes which abet in enhancing customer’s experiences as well as employing cutting-edge technology such as AI, RPA (Robotic Process Automation) and machine learning to further accentuate millennials engagement. Not to mention, cloud-based infrastructure offers great agility to banks to quickly respond to changing market needs without any additional investment.

• Infrastructure Cost Is Minimum

Probably the most shout out the advantage of cloud computing in contrast to its in-house premise is its easy adaptability to changing organizational requirements. To simply put, when banks need to expand their operations geographically the most daunting task they face is additional infrastructure needs, from whom to buy software and hardware, and hiring new staff to handle the workloads etc. However, with Cloud computing and cyber security, additionally, IT infrastructure and maintenance is not an issue, banks can scale up their operations with ease.

Conclusion:

As digitalization is the need of the hour, it’s vital for banks to reap the ultimate advantage of cloud computing and gain a competitive edge. Only cloud solutions have the potent potential to change the banking landscape – helping banks offer at par customer services, ensuring data and information security, and achieving business goals. So, choosing the right cloud service partner and software testing service is essential for banks to take their banking services to the next level!

The fintech industry has always been unsusceptible to new innovations. Post-2020, the global pandemic has brought unusual change to every sphere of our lives, the financial institution being no exception. To strive for success digital transformations have become more recognizable than ever. Here is where cloud solutions and RPA alias Robotic Process Automation in Banking can become a potent problem solver that permits streamlining time-consuming heavy jobs, eliminating human error, extensive cyber security and most importantly cutting down organizational costs.

PwC reports disclose that nearly 81% of bank CEOs are apprehensive about the rapidly changing technology. To add, the challenges are not only to keep costs low and maximize efficiency but also to ensure maximum security. And to overcome these challenges innovative RPA and Cloud computing are effective tools.

 

Let us dig deeper to know how RPA applications in varied BFSI segments along with cloud storage can refine the financial sector!

Why RPA Is Significant In The BFSI Sector?

As the name indicates RPA (Robotic Process Automation) is utilizing software to automate tedious and monotonous tasks. To add, RPA in banking performs a plethora of tasks including huge calculations, automating transactions, data-processing, and solving complicated problems. Besides this, the BFSI is exploring the possibilities of RPA to lessen-down human labor, increase efficiency and productivity, and complete time-consuming tasks in a faster manner. Not to mention, with the use of RPA the large-scale back-office activities are effectively streamlined which were earlier stalled by bank employees. Scalability, consistency, and cost-effectiveness are some of the key advantages of robotic process automation.

Furthermore, digital

transformation in the BFSI sector could include ameliorating the use of Artificial intelligence (AI) to amplify customer relationships, construct customized financial plans, and automate the debt collection process. Moreover, the BFSI sector is also moving towards cloud solutions for storing voluminous data.

RPA Applications in Financial Sector

Customer Onboarding

One of the time-consuming processes in the financial sector is customer onboarding as manual verification of documents for each customer is a prerequisite. Plus, setting up a customer’s profile on a different platform and internal system is also imperative, which in turn is quite time- consuming. However, RPA software can simplify the same process by procuring the customer information from KYC documents by using OCR (optical character recognition). The obtained data can be compared with a customer-filled form and in case of any disparity detected or no disparities detected it will be automatically written down in the customer profile. Thus, with the use of RPA, the customer Onboarding process is more accurate and helps in saving hefty time for employees.

Processing Of Loan

The process of approving a loan often goes through multiple steps such as credit score, employment history, repayment history, and inspection, etc. RPA is significantly effective for loan-based activities as it proffers maximum clarity as well as precision across every task in the process.

That said, with the use of RPA the complete loan approval process is automatic i.e., financial institutions can collect and manage customer records at every stage of the loan approval journey. Besides this, RPA in a few minutes can search for necessary information in the document base which may be required for approval or non-approval of the loan. The laborious loan processing activity can be completed in 10-15 minutes with RPA!

Credit Card Processing

To process a credit card there are too many tasks required namely validating customer information, checking customer background, inspecting customer credit history, and verifying records from various sources. But with RPA the credit card process can be done in a few hours as all the information is concurrently obtained from varied systems, then matched with customer data, and verification is finished within a few hours. On the basis of RPA information, the decision of approval of a credit card can be taken. Hence, the entire cumbersome credit card process is faster with the help of RPA benefiting both the parties, increasing bank performance, and higher customer satisfaction rate.

Automatic Accurate Reports

Like other private and public companies, all the BFSI companies need to prepare annual reports for major stakeholders to know how the business has performed in the last financial year. Considering the importance of financial reports there are no odds for financial institutions to make any mistake. With RPA the risk of human error is eliminated as the details are automatically filled in the reports. Therefore, RPA abets the financial institutions in speeding up the reporting process, delivering sheer accurate and true information with their stakeholders.

Opening Of Accounts

With RPA integration in the banking sector, the process of account opening can be simplified and faster. Using RPA, the crucial customer data can be procured from the form and the same can be utilized in various other host applications. A similar accounting opening algorithm can be implemented with RPA, making the accounting opening process easy.

Know Your Customer (KYC)

Nowadays, Know Your Customer (KYC) is an obligatory process for every customer and bank. In this process, there are more than 500+ FTEs required to perform for customer history. Manually performing these checks requires time and money. So, financial institutions are looking to use RPA to perform and validate customer data, helping save employees time as well as with minimal errors.

How Cloud Computing Is Significant In The Financial Sector? The financial sector in 2030 will completely be different from today, meeting tech-savvy customers’ expectations and comprehending fast-paced digital transformation- the banking sector and other financial institutions need to prepare for the future. Hence deploying cloud computing technology in their growth strategies can help reshape the financial sector landscape. With that said, cloud computing in banking is not just an innovative technology for the BFSI sector instead its destination for myriads of firms to store huge amounts of data and applications in the most secure way. Besides this, many cloud service providers offer numerous PaaS (product- Service-Systems) also known as Product-as-a-Service that helps banks to deliver relevant products in the market quickly, amplify revenue, and enhance customer insights. Also, with cloud solutions financial crimes (fraud and money laundering) can easily be curbed as thousands of transactions can be scanned per second, helping banks combat fraudster activities.

How Cloud Computing Is Significant In The Financial Sector?

The financial sector in 2030 will completely be different from today, meeting tech-savvy customers’ expectations and comprehending fast-paced digital transformation- the banking sector and other financial institutions need to prepare for the future. Hence deploying cloud computing technology in their growth strategies can help reshape the financial sector landscape. With that said, cloud computing in banking is not just an innovative technology for the BFSI sector instead its destination for myriads of firms to store huge amounts of data and applications in the most secure way. Besides this, many cloud service providers offer numerous PaaS (product- Service-Systems) also known as Product-as-a-Service that helps banks to deliver relevant products in the market quickly, amplify revenue, and enhance customer insights. Also, with cloud solutions the financial crimes (fraud and money laundering) can easily be curbed as thousands of transactions can be scanned per second, helping banks combat fraudster activities.