In yet another sign of the fintech revolution, fintech companies are now eyeing to penetrate the transaction in banking industry. The fintech industry has the potential to revolutionize traditional banking services. India has witnessed the growth of fintech especially after shaking up the payment gateway business.
Transaction banking consists of cash management, trade finance, and security related services. The growth of fintech in India has also brought in new innovations, and cutting-edge technology which are easing the norms of banking.
With smoothening the processes, it will become easier for fintech companies to step into the transaction banking sector. FinTech has also introduced customizations for users with user friendly interface, dashboards, visible cash flow positions, and liquidity management, which gives full access to business to keep a track.
In addition to this, fintech will also look at the securities services area. With the help of blockchain technology, these startups are developing secure and decentralized platforms for asset tokenization, issuance, and trading, enabling ownership of assets, eliminating intermediaries, and enhancing liquidity.
Considering that banks have their set relations with corporate clients, and have regulatory expertise, it will not be that easy for fintech to penetrate through the transaction banking. Currently, these fintech startups are working towards building partnership with banks.