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The finance industry has adapted fast during COVID-19. From providing quality service to helping customers send and receive money effortlessly, we have seen changes in the industry.
One of the most common changes that we have noticed around is the digitization of the financial service. From maintaining the passbook of the bank to taking loans and other services from the bank we have seen the rise in the mobile banking infrastructure.
In this blog, we will look back and see what changes we have witnessed in the finance industry in the last few years after Covid.
The Start of the Neobanks
In the development of the neobanks, we can see the digital infrastructure that has been developed where the customer can get all the banking services from their mobile phones. The fintech organizations are the ones who have started to cover all these aspects that are required to manage funds.
Next, this movement fueled growth in the traditional banks as they now came to serve customers with digital ads. From wealth management and investment services to lending and payment options the neobanks are the ones who are leading the growth stage.
The consumer perspective also shifted as the banks started to offer all the services in an integrated way. For example, in taking loans, one can visit a DSA app and, as per the suggestion of an agent, can get a loan only through their mobile disbursed within a few hours.
Introduction of the Buy Now Pay Later Service
The demand in the BNPL has surged during the time of Covid. As COVID came, many people lost their jobs, and at times these BNPL services have helped a person to grow and buy items. It allows an individual to have a certain period where they can buy an item and pay for that later.
During a cash crunch, it helped many buyers who bought their essential items in this BNPL payment format. After Covid, the industry’s annual growth rate stands at 24.2% on a compounded annual growth rate.
The Rise in Digital Payments
The next leg of growth in the finance industry happened in the digital payment system, where many people have turned to payment apps of banks and third parties to make payments. For example, during the time of COVID-19, people used to pay others through an app that they connected with their bank accounts.
As per the data from the RBI, transaction records are crossing an all-time high as many people are now using digital payment services for daily transactions at shops and other areas. For example, it’s the rise of cardless and barcode scanners helped customers facilitate transactions is the best way to remove friction and make this a habit of the people.
The Experimentation with AI-Based Investing
The experimentation with AI-based investing is something which has started after the wave of AI. In the recent development of generative AI, we have seen many fields affected by the AI wave, finance is also one of them.
For example, there are Robo-AI investment machines that are used to track the market and take entry and exit positions based on the market conditions. Therefore, these are some of the key measures that need to be checked when we are talking about AI-based investing.
The Start of the Digital Lending Facilities
In the digital lending landscape, we have seen significant growth after the years of Covid. People now access apps where they can get quick disbursement of cash, and that helps them to get personal loans immediately.
Due to credit cards and loan facilities, many people now have a credit history that helps lenders ensure which loans will be qualified, safe, and secure. For example, a loan agency is one such area where one can enquire and find the best loan interest, and through that, one can make changes in their plan and take the loan accordingly.
The digital lending facilities remove the need for rigid documentation, and it used to take a lot of time for a borrower to get access to that fund. Now, in the current times, banks can take access to the digital documents of the person, and that will allow an individual to get their documents verified in no time and get their loan approved.
These are the major changes that happened in the finance sector of India in the few years after COVID-19.