If 2018 saw the rise of new players stake their claim in the market, 2019 saw the fintech landscape in India consolidate it’s ground. Early bird startups in payments and digital ecosystem like PayTM, PhonePe overcame it’s growth pangs and is looking at diversified offerings to drive both organic and inorganic growth. New age lenders such as Zestmoney, mSwipe, Coverfox etc. have found significant success and growth in the past year and have been driving credit-based transactions despite the overall economic slowdown. New-age platforms such as Cred, Rubique, etc are leveraging AI and machine learning models taking into account hundreds of disparate datapoints from various sources and consolidating them to understand the psychology driving financial behavior thus anticipating bad faith transactions and reducing NPAs. The fintech landscape, overall, has found much more success in driving down bad loans from it’s books and is in a much better financial health compared to the traditional money market.

What does 2020 have in store?

If 2019 was about consolidation among the upstarts, 2020 will see the emergence of big tech in the sector, putting enormous pressure on the existing players in the ecosystem. That does not necessarily mean that big tech players have a free reign. Two major factors will influence the extent to which these players will find success in 2020:-

  1. Regulatory pressure around India-specific data privacy and security
  2. Success in onboarding Tier 2 and Tier 3 merchants onto their platform

Digital Payments

In the Digital payments space, there will be significant competition among 3 major players – Google Pay, PhonePe and Whatsapp. UPI is expected to be the primary mode of payments in the digital payments space. However, the later half of the year might also see uptake in digital offline modes with device-to-device transactions gaining popularity going forward. This will also enable OEMs and device manufacturers to make a significant play in the market by locking in transactions within their own device ecosystems.

Whatsapp banking

Whatsapp Banking will see a major surge going forward. Already, a few banks have gone live with simple chatbot-based solution for onboarding and transacting using Whatsapp. However, with the Whatsapp payments solution expected to go live anytime next year, Whatsapp may turn out to be the primary interaction layer for banks and NBFCs. Local vernacular support on Whatsapp will also help banks reach customers in areas yet to be fulfilled by branch banking.

Whatsapp can build a treasure trove of data by allowing businesses to transact on it’s platform and thus able to build a much more sophisticated and personalized dashboard of each user enabling lending firms build robust credit models using the same. With Whatsapp’s full suite of applications, banks and NBFCs can also track users in greater detail than any existing mode available with banks currently.

It is exciting to imagine the use cases when Whatsapp is fully leveraged for banking and financial

Voice-based authentication for financial transactions

While small skillsets and transactions have already been built to allow transactions using voice-based transactions over devices such as Alexa, Corona and Siri, 2020 might finally see the advent of full-fledged banking models leveraging this new mode of communication. Allowing voice-based authentication for financial transactions will help build a robust and secure transaction layer that will help reduce fraudulent transactions. Instead of manual input of OTP, you can use a secure voice-based keyword to authorize transactions that will be unique to your own biometric identity.

eKYC 2.0 – vKYC and fKYC

2020 is expected to help usher in the next evolution of eKYC – vKYC (voice-based KYC) and fKYC (face-authenticated KYC). Many banks and NBFCs have already experimented with face and video-authentication services and some use cases are already operational. Given the significant groundwork already completed for fKYC, 2020 might finally see the regulator frame the guidelines around this important mode of KYC.

As explained above, voice-based transactions and voice-based KYC authentication is also gaining popularity and one might expect to see at least a few use cases take off completely on voice-based commands. Local vernacular support for voice-based transactions will also help firms bridge the gap between digital natives and non-natives. Simple, friendly interactions carried out in local language and vernacular will help connect with customers even more closely thus solidifying the customer-bank relationship.


The above trends give an idea of the dynamic nature of the business that is expected to take shape in 2020. In such dynamic scenarios, businesses expect to ideate, prototype and launch business applications rapidly in order to catch customers early in their transaction cycle.

With Decimal’s Rapid Application Development platform, we are trying to bridge this gap and allow business users to rapidly prototype, test and release apps on-the-go. With built-in integrations for various services such as videoKYC, whatsapp integration and payments platform, our Vahana RAD suite allows you to quickly roll out new business apps and ensure rapid GTM. To know more, get in touch.

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