aeps - aadhar enabled payment system
Jose Thattil

While financial technology or FinTech is not a relatively new phenomenon for the Indian economy, it gained renewed attention and impetus only post the massive demonetisation drive in 2016.

Evidently disruptive in its approach, the technology has revolutionised finance and banking services, redefining the roles of transactions and re-establishing a more innovative, seamless, multichannel and efficient system, almost shattering the traditional banking system.

Backed by several government initiatives across sectors, the FinTech segment has become a strong force leading the revolution for the traditional financial services, emerging as a flag bearer of a confident and progressive national economy.

Viewed as a millennia phenomenon and crafted out by the new age start-up revolution, digitisation has transformed the nature of all financial interactions across platforms, sectors, and consumer & business segments. Some of the key sectors leading this transformation include:


Although plastic money has been around for quite some time, the digitisation on Payments through the introduction of mobile wallets, P2P transfer applications, smartphone and point of sale technologies has made payments one of the most revolutionary of all FinTech offerings.

Supportive policy framework combined with ease of operations and accessibility across multiple platforms is further set to drive acceptance of digital payments.

A hybrid and innovative ecosystem that is agile and offers solutions to consumers and merchants which are easy to use have universal acceptability, most apt payment mechanism and highly secure are becoming part of mainstream retail digital payments.

Marketplace Lending

Also known as alternate lending, this refers to the unconventional mode of data analytics for establishing the credibility of consumers for lending.

The online lending platforms (P2P, MSME), now buzzwords among the FinTtech circles, drive intelligent data collection and analysis to facilitate informed and accelerated decisions on the creditworthiness of the borrowers, thus cutting down drastically on time and cost, while enhancing customer experience, agility in offering solutions and brand loyalty.

Insurance Technology

Digitisation is driving the growth of the Insurance segment by cutting down on risks, costs and time, and creating an efficient and shorter insurance value chain.

With the use of artificial intelligence, data analytics and blockchain for risk assessment, claims management and sales, the Insurance sector is witnessing the massive transformation, especially in areas of fraud control, faster onboarding and improved consumer experience.

Wealth Management

Wealth management, a crucial forte once considered to be the privilege of the few intelligent bankers, is undergoing a makeover globally with a unique hybrid automation approach – a combination of robot advisory and human intellect is driven service.

Creating a fine example of human values of empathy, understanding and assurance, backed by robotic data analysis and competent risk assessment, the sector is set to further expand with innovations in AI and ML technologies.

Evolving relationship between FinTech & traditional BFSI Players

Traditionally the BFSI segment has been known for its tough regulatory framework, meticulous documentation and lengthy and often cumbersome processes.

Riding high on the wave of the IT revolution, the FinTech segment offered an alternative to consumers and corporates alike, transforming consumer experience, simplifying processes and re-creating a much faster and integrated format of financial transactions across platforms.

Viewed as a competition to the traditionally rooted banking and a financial segment in its earlier days, today, FinTech has become a strong backbone of the BFSI segment, working in a collaborative ecosystem that is redefining consumer experience through intelligent innovation.

Future Scope

One of the key factors arresting the growth potential of FinTech in India is the digital readiness of the economy that is plagued by lack of a uniform and consistently operational infrastructure, absence of superior connectivity, lack of technologically skilled manpower, lack of digital literacy among consumers and a larger, widespread lack of trust and awareness about the evolved digital platforms for transactions.

However, focused government initiatives, under the ‘digital India’ campaign are slowly but surely creating a difference in bridging this gap.

Further, initiatives that interact at the grass root level with citizens, like the Digilocker, eSampark, eLearning, Aadhaar linking etc., are acting as effective catalysts in both digital literacy and awareness of benefits among citizens.

Upcoming Technology Trends in FinTech to look out for:

Artificial Intelligence (AI) & Machine Learning (ML)

AI is set to rule the FinTech segment, bringing in intelligent automation and strongly supporting data analytics-driven functions.

Largely a part of AI, Machine Learning (ML) is a more agile format that responds promptly to analytics with reliable solutions and approach.

Together, for the FinTech segment, these technologies will be responsible for creating prompt and personalized customer experiences, backed by data-driven insights.

Block Chain

The new buzzword in FinTech circles – Block Chain, is fast gaining acceptance in the Indian Financial services sector.

Based on the principals of Distributed Ledger Technology (DLT), the concept has promising potential to create a transparent and trustworthy transaction environment.

Although nascent in India, the Block Chain can be expected to take over 3 key segments of financial services in India, namely Payments and Funs Transfer, Smart Contracts and digital identity.

Focus on Data Analysis and Integration

While financial institutions and FinTech start-ups are bringing about a significant change in the financial services segment through a collaborative effort, the future lies in the integration of these services which are focused strongly on accurate and efficient data analysis.

As Mr Jose Thattil, CEO, Phi Commerce Payment Solutions envisions, “The current FinTech environment, with its multichannel digital platforms, offers a unique advantage to access meaningful customer data and insights.

Banks and financial institutions have woken up to the massive potential of this data to identify specific customer requirements, create a better opportunity for customer delight and explore the scope for innovative services.

If leveraged efficiently, data analytics will drive the future of FinTech to ultimately create a seamless and integrated Omni channel service approach which further opens newer revenue models.”

Phi Commerce creates an ecosystem between merchants and consumers through simple, secure and efficient payment processing which helps commerce to flourish and build lasting consumer relationships.

Phi Commerce solutions are localized for merchant use case unlike generic “one size fits all” solutions.

Underpinning all Phi Commerce solutions is the PayPhi Transaction Gateway, an omnichannel gateway which supports various types of payments such as payments on the go, in-store payments and online payment.

PayPhi eCOD solution provides consumers with a simple, safe, anytime / anywhere way to digitally when the goods or services are delivered/rendered.

The effective nature of this service has resulted in it being rolled out to consumers of over 220 e-tailers across 5500 PIN codes within 6 months!

PayPhi MerchantPay, an Omni payment acceptance platform, allows merchants to accept payment using UPI, BharatQR, AadhaarPay without any additional investment in devices. PayPhi MerchantPay can be used as standalone application or can be integrated with the teller systems or delivery/booking apps.

Delivery agents of one of the largest LPG refill supplier in the country use PayPhi MerchantPay to enable cashless payment on delivery of cooking gas cylinder.

PayPhi ePay – enables the business to send secure collection request to the consumer for instant payments. This can be used for both proximity and remote collections.

The core team of Phi Commerce are seasoned payment professionals with more than 150 years of experience in retail payments domain across 25 countries globally.


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