A lot of changes that are shaping the FinTech industry today takes into consideration the adoption of a more open banking culture where information exchange is made possible between third party systems.
The year 2020 has been a mixed bag for Indian FinTech industry with certain unforeseen circumstances rocking the industry in recent times although increase in digital payments holds some promise. From blocking the unified payments interface (UPI) handles of Yes Bank after the Reserve Bank of India placed the private sector lender under moratorium to weathering a crisis situation for one or two quarters more amidst the COVID-19 pandemic, FinTech start-ups are keeping their fingers crossed against further unforeseen jolts coming their way.
S Sundararajan, Executive Director of FinTech firm i-exceed shares more insights on the FinTech scenario in India.
Q: How will incidents such as the recent Yes Bank fiasco impact FinTech players in India as rules for the FinTech industry are framed keeping in mind the interest of banks?
A: Incidents such as the Yes Bank fiasco will try and bring in more levels of checks and balances as well as transparency across stakeholders going forward. Up till now, it was mostly the public sector banks that have held control over a majority of assets in the Indian banking system. In the future, we’ll see that aspect changing with private banks as well as other players playing a bigger role to ensure that fiascos/fraud of this nature and others that we have witnessed over the past years are not repeated.
Q: What are the challenges before the FinTech industry and how can it be addressed?
A: A lot of changes that are shaping the FinTech industry today take into consideration the adoption of a more open banking culture where information exchange is made possible between third party systems. This will ensure that the end customer gets access to a better as well as a wider range of banking products and services to choose from. Also, the increasing levels of security that are being added to FinTech systems for a safe and secure banking experience ensures that going forward such incidents, would, in most cases be nipped in the bud itself.
Q: What impact will the COVID-19 crisis have on the FinTech industry globally as well as in India?
A: The crisis will have a change in mindset not only in the FinTech industry but all businesses globally. As organizations come up with their BCP (Business Continuity Plans) for these uncertain times, they will find more and more effective ways of getting work done remotely. Self-service options, digital banking with risk mitigation, continuous delivery and constant improvement of processes start playing a more vital role than it has been done so far.
Q: In these difficult times, with economies around the world taking a beating, how is i-exceed gearing up to handle the challenges? Any news initiatives to tide over the uncertainty?
A: i-exceed is committed to standing together with all our customers, developers, partners and the broader communities in these difficult times. Our engineering teams are consistently ensuring a seamless transition to remote working for the entire company globally in a matter of hours. Our customer success teams are working 24x7 to help all our customers during this time of disruption. We always had a robust and time-tested COB (Coordination of Benefits) model and were able to activate it within 24 hours. As recently as last weekend, we made a large global release for one of our large customers with the entire team - both customer and i-exceed staff - working remotely across continents. We are here to ensure that our customers are able to run their businesses without any major disruptions in these difficult times.