Digital finance empowers individuals and companies to access financial services, be it payments or credit products, at their fingertips. Application of technology has redefined the movement of money. Mobile payments, online wallets and UPI are all results of this revolution.
Real-time credit decisioning will make funding of loans completely online, seamless, and instant. This technology allows lenders to digitize their credit policies and provide customers with a convenient online application and the value of immediate account funding.
We are already seeing a trend that customers are fulfilling their small ticket, short duration loans through various digital lending platforms. The cost of acquiring these customers and underwriting them has reduced as most of the data is available on API real time at nominal per unit price. The transaction numbers indicate that, lenders offering buy now and pay later and short-term sachet loans have found a strong product market fit and is expected to grow through 2021.
With the growing dependence on technology and cloud computing, there is a growing concern and rise in cyber crime. To protect data, reduce or eliminate loss, and meet the regulatory compliance requirements, cyber security and access management are going to play a major role. Organizations will continue to embrace new edge and remote technologies and implement more security practices like data encryption to further safeguard the distributed workforce of the future.