Financial technology used to be the back-end support function for many companies. Venture capitalists have not seen the importance of it and have barely invested in the sector. Over the last decade everything has changed, venture capital skyrocketed and the investments have increased from 5% to 20%. Fintech has taken its place in the innovation economy. As fintech grew, global banks rolled up corporate venture arms and digital incubators, investing, acquiring, and improving solutions from emerging startup companies. We are standing on the crossover of fintech’s second wave of disruption and Zaggle terms it as a real game-changer. 

Personal finance is much simpler but enterprise financing is a hassle which many companies outsource to experts as they have to tackle bank deposits, interest rates, corporate investment, lenders and creditors, debtors. Handling office finances have been big trouble for corporates given the core competence is to manage the external environment.

Digitization is happening all along the value chain. Front office interactions and relationships are moving out from physical conversations to cell phones. Automation is being applied to the process of assessing, onboarding, and serving the customer. Such automation has resulted in massive vertical competition between various industry sectors as they pivot to bundle and cross-sell their services. Digital payments apps have partnered with banks to provide consumers with easy financing & Payment options. 

Product led solutions have proven to be more beneficial to the corporates in the last decade, Zaggle Save, expense management empowers your businesses to spend smarter, it enables organizations to move paperless and cashless. Finance teams can easily track all the employee’s spends and sync all the data to their accounting systems.

Decentralization of financial services empowers fintech startups to create an ecosystem where banks and fintech companies can work more collaboratively in sharing resources, and therefore making it easier to keep up in our rapidly changing world says Avinash Godkhindi, Zaggle CEO.

Drivers of fintech innovation

Technological advancements
New technologies like ML, IoT, AI, blockchain, and cloud computing are the major drivers of FinTech companies. Nowadays, these technologies are how consumers purchase and how they manage their money. Traditional Banking & Financial services players consider FinTech as a disruptor of their industry, few of them are embracing the latest technological innovations and are transforming the industry from the outside in, and succeeding in areas traditional players have failed in. FinTech companies are now leading the industry by focusing on the major purpose of making money management easier and more effective.

Consumer behavior:
Gen X, Y, and Z have shifted their approach to finance and payments with societal changes, and millennials have shown an early adoption rate. Investment in the sector has been thriving and is continuing to grow rapidly, ensuring we will see many more advancements in the near future.

Borrowing & Lending money: Getting access to funds has become much more transparent and less centralized, and the traditional way of borrowing money from a bank via loans and mortgages is being joined by options like crowdfunding and peer-to-peer lending. 

Zaggle Founder & Chairman Raj N Phani says that as developments in the area of FinTech are happening at lightning speed, we have only begun to scratch the surface of what is possible and likely to happen in the next few years. Fintech startups need to instill greater confidence among Indian customers who are very cautious in accessing financial preferences. Overcoming a few challenges in the financial sector, especially in the regulatory and data protection space can help to win consumer trust. 

Zaggle has always been at the forefront of bringing advanced technologies into market, We believe that our suite of products can help organizations to help achieve maximum efficiency & employee productivity. For more details please visit: www.zaggle.in

Jeevan Kumar

Jeevan Kumar - Author