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Changing Wealth Management Techniques with Latest Consumer Trends

The year 2022 was significant for the worldwide wealth management industry. Wealth manager scrambled to modernize service offerings and allows remote servicing and distribution in the aftermath of the global pandemic.

As a result of political concerns, global mobility increased or record cross-border capital flows occurred as investors sought sanctuaries for their cash. Think forward to 2023, global economy faces a number of obstacles.

Inflation and headwinds take center stage in the news just as the world is recovering from the worst effects of the COVID-19 epidemic. Along with other things, these advancements will have an impact on how wealth managers think, invest, and work. While there will be problems, there will also be opportunities for those who can adapt.

The wealth management sector has seen a paradigm shift in recent years due to shifting demographics, a rise in millennial investors, and fast digitalization. Today’s investors are better informed, have access to professional information and tools, and actively plan their finances. Self-reliance is becoming more popular than depending on one’s parents to support one’s lifestyle. Millennial investors have distinct perspectives on guidance, as well as new attitudes and expectations, which have an impact on how older investors choose and use wealth services.

The most modern and forward-thinking institutions will utilizes this period to fine-tune their strategy, recognize significant trends and invest in them, improve operational efficiency and cut superfluou costs, and expand their product and service offerings. As a result, when normalcy returns, they will be in a strong position.

Latest Consumer Trends of Changing Wealth Management Techniques

In 2023, we predict that these will be just a few of the major trends affecting wealth management decision-makers.

  • Hyper-personalization
  • One of the most prevalent critiques leveled at significant financial entities is that they do not know or understand their consumers well enough. The ability to structurally exploit existing consumer data will enable the generation of findings that may lead to bespoke or semi-bespoke offerings. These will, at a minimum, generate a sense of a unique, personalized service that, if properly formulated, is much more likely to appeal to the targeted subset of clients.

    Researchers predict a much wider usage of data analytics to drive hyper-personalization at scale as our capacity to leverage both structured and unstructured client data grows, and as we see a greater focus on cutting operational costs and expanding market and wallet share.

  • Adoption of Fintech
  • With rising expenses and clients expecting more than ever, wealth managers, particularly those in larger and less specialized customer segments, will recognize that the quickest way to improve a product or service offering may be to outsource to a specialist service provider or vendor.

    Researchers expected more general adoption of bank/fintech partnerships in more specialized sectors, such as news and content management or crypto trading. Clients may seek direct ties with well-established fintech providers to address some of their wealth management needs, particularly from ‘non-financial organizations’ with whom they already have a trusted relationship, such as telcos or super-app providers.

  • Digital onboarding is a top priority for businesses
  • In times of health crises, digital onboarding is a top priority for businesses. Digital onboarding is the automatic acquisition of people through a digital device in an agile, simple, safe, and guaranteed manner. The first information-gathering step is minimized, made fluid, and simplified from the client’s perspective due to the safe digital delivery of the relevant papers.

    The simplicity of the preliminary phases considerably improves the client experience. For the wealth management firm, digital onboarding streamlines the setup of a new client account and decreases administrative interactions with the client. Furthermore, the dematerialization of documents decreases the use of paper and eliminates the need for the physical storage of paper.

  • The provision of a digital reporting experience.
  • In today’s increasingly competitive capital market, a great reporting experience can be critical in retaining clients and winning new mandates. Investors are increasingly looking for wealth managers who provide a digital reporting experience via a client portal, allowing them to monitor top-level performance and risk data in near real-time and delve into specific information at the individual security level. For asset managers looking to differentiate their services, static, periodic reports are no longer sufficient.

  • ESG Investing
  • Several studies have demonstrated that a younger generation of investors is looking for investments that reflect their core beliefs, and those that are unwilling or unable to meet client demands for ESG-compliant portfolios risk losing those clients to rival service providers.

    Despite the fact that the product landscape has progressed to the point in which there are now a plethora of tools available to assist with the development and implementation of a robust ESG framework, wealth managers continue to be reticent to adopt these notions as a core pillar of their service. The misconception that ESG-compliant portfolios lag behind non-compliant portfolios has been dispelled.

  • The Transfer of Generational Wealth
  • This trend will continue to be crucial for wealth managers who target customers with higher networth because it is predicted that between 40 and 60 trillion dollars will be transferred from the initial baby boomers to subsequent Gen X and Gen Y children.

    Aside from ensuring that an organization has a service offering that appeals to a younger client base, they will also want to guarantee that their consumers can receive valuable assistance in challenging sectors such as medicine, planning for retirement, and inheritance tax.

  • The growth of alternative investments continues
  • Private equity, real estate, and hedge funds are just a few examples of alternative investments that have gained traction in recent years. We anticipate that this trend will continue in 2023, as more investors look for ways to diversify their portfolios and potentially earn higher returns. Asset managers who can provide a diverse range of alternative investment solutions will be in a strong position to attract and keep clients.

  • Conclusion
  • As we approach 2023, we expect a stronger emphasis on fintech adoption, ESG-compliant frameworks, and hyper-personalization for the wealth management sector to enter the decision-making frame. Likewise, there will be significant generational wealth transfer, as well as a rapid rise in customized or custom indexing.

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Why should you plan for investment as early as possible?

Everybody says to start investing early to reap a lot of benefits. But we have only just started our first job, and we have rent, bills, and commute charges to pay for. We know that savings and investments are just as important as starting to study early for exams, or starting to exercise early. The same is true for investing and saving money. You’ll be in better shape later on if you start sooner. We know that it will benefit us a lot but are we ready for it? We just have started to earn and expenses are a lot to deal with do we have enough to even start investing? Can’t we invest after some time when we are stable in our careers?

Even though many people believe that one should put off starting to invest until they are older like when they are in their 30s and 40s, this is not the wisest course of action. So let’s understand why we should not delay in planning our investments.

Types of Investments:- 

Due to the enormous advantages that investing gives, the majority of financial experts advise that one begin investing as soon as feasible. Early investment promotes systematic wealth growth and long-term security. Winsoft technologies provide support for hassle-free investments in multiple digital application channels, Some of the investment types are:

  1. Mutual funds – One may not have enough opportunity to monitor the stock market and invest in any direct investments if one is too busy with work, career, or business. Mutual funds can be useful in situations like this. You have a variety of options, including debt and equity mutual funds, balanced funds, and other similar vehicles.

  2. Provident Funds (PF), and Fixed Deposits – These are the safest investments with mediocre returns. These provide greater safety and liquidity.

  3. National Pension Scheme- NPS offers double tax advantages and is created to help people build retirement assets through methodical investments in the capital market. Section 80CCD(1) of the ITA permits deductions for investments up to Rs. 1.5 lakh. Additionally, Section 80CCD(1B)* of the ITA allows for an additional deduction of 50,000.

  4. Pension Plans- They are made to offer a consistent income stream after retirement. Under Section 80CCC, an individual may deduct up to 1,50,000 from their taxable income for investments made.

  5. IPO – Equity investments include those made in IPOs. They, therefore, have the potential to provide significant returns over time. Our earnings can assist us in achieving long-term financial objectives like retirement or home ownership.

  6. Endowment Plans – They are for long-term objectives including retirement, home ownership, child-care costs, and more. They are designed to help you develop a disciplined saving habit that will enable you to reach your long-term objectives. They give you the chance to increase your money while also providing life insurance in case something unfavorable happens.

  7. Sovereign Gold Bond – In India, gold is regarded as one of the most secure investment options over the long term due to the ease with which it may be liquidated in the event of a financial emergency.

Reasons to plan early investment:-

By making little investments early in life, one can create a second source of income. Early investment also aids in accomplishing other life objectives, such as planning for retirement, purchasing a home, and paying for a child’s education. In order to maximize investment returns, one should always start investing as soon as possible. Here are some of the reasons explained in detail to tell what should plan for investment as early as possible:

  1. Future Security

    Our liabilities are typically lower when we initially start working, leaving you with more income. As a result, one can set aside some of the money for future requirements. It is advantageous to start early since it provides us the freedom to take chances by making investments in high-risk, high-reward investment products that accelerate the growth of your money. Later, when family dependents, life ambitions, and financial responsibilities increase with age, one can rebalance their portfolio.

  2. Increase in the investment value with age

    It makes sense that the sooner we begin, the more we can accumulate, and the greater our chances of achieving our financial objectives. We can begin our investment journey with modest sums, and if our income rises, we can increase the investments at the same time. Gradually increasing the investments reduces the strain on the paycheck, and when we invest in this way for a long time, our money grows. This way investment quantity may be modest due to the extended investment term.

  3. Early investment helps you develop better spending habits

    Early savings and investment habits will immediately enhance our spending patterns. We must set limits on our spending by making a monthly budget for ourselves if we wish to save a certain amount from our fixed wage. And creating a budget is the best approach to change our spending patterns since it allows us to keep track of how much money we spend each month on things like food, utilities, rent, fun activities, etc. Additionally, with years of practice, this simple task becomes a natural habit.

  4. Higher ability to take risks

    We have the opportunity to take more risks when we are young than when we are older. As we get older, we have fewer financial responsibilities, therefore we don’t have to consider an investment in a dangerous product as carefully. And even if something goes awry with our investment portfolios, we would still have plenty of time to fix it and go on. Additionally, while equities carry a higher level of risk than fixed-income investments, they may provide us with higher returns over the long term, allowing us to build up a larger corpus with a smaller initial investment.

  5. More equipped to face challenges

    Our finances may at some point become unstable, but if we start investing early, we’ll be ready to handle these difficult times. As we would have enough money to get through difficult stages, early investing can assist us to get through such difficult times. In the words of the Chinese philosopher Confucius, “A man who does not plan long ahead will find trouble at his door.” The same holds true when it comes to investing. Start early and embark on the path to financial independence.

  6. Benefits of compounding

    Compounding allows our money to grow and earn more money for us. On the money we initially invest, interest is earned. Then, the interest is applied to that sum, increasing the amount originally invested. An even greater interest rate is attracted by the increasing investment amount. With such growth over time, we generate substantial profits.

  7. Protected Retirement

    Making early retirement plans boosts our likelihood of achieving financial security in our senior years. A lengthy investment horizon smoothes the effects of market changes in addition to compounding. Therefore, the longer our retirement savings grow, the higher they will be after our paycheck quits.

To summaries:-

Wealth can be amassed more quickly by managing money and taking responsibility for our finances by making the appropriate investments early in life. We can assist our loved ones in accomplishing their objectives and desires by having a stable financial situation. So start the investment process right away if you haven’t already. Start out small, keep it straightforward, and keep learning over time. There is no shortcut to wealth generation; it is a long-term process. The biggest benefit we have as young earners is time!

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The Next Evolution in Digital Banking in India 2022-23

Digital banking in India is on the cusp of phenomenal growth with over ninety crores of smartphone users, cheap data, 5G, and innovative tech solutions. The government of India is taking aggressive strides toward maximum financial inclusion with digital banking services.

According to a press release published by PIB (Press Information Bureau), IMF and World Bank have praised the digital banking infrastructure of India. Recently Prime Minister of India dedicated 75 digital banking units for 75 districts across the nation to celebrate the 75th year of Indian Independence.    

Digital banking is the current and future of financial transactions, savings, and investments. It is in the evolution stage, and you will experience several innovative tools over the years.  

What is Digital Banking?     

It digitizes your banking details and minimizes the need to visit physical bank branches.   

Technologies Shaping the Next Evolution of Digital Banking in India 2022-23    

Cloud-Based Digital Banking 

  

  • Digital banking is a set of complex technologies and systems that need to integrate for a smooth workflow. 

  • Cloud-based technology integrates multiple platforms. It develops a responsive system and minimizes operational bottlenecks.

  • Cloud facilitates hassle-free traffic monitoring, efficient automation, and consistent policy implementation.

  • 5G and advanced technologies will further increase traffic and therefore pressure on the digital banking infrastructure. Cloud technology will enhance UI and UX.

  • It will make banking commercially profitable and boost its reputation.

  • Recently global organizations Wells Fargo, Deutsche Bank, Goldman Sachs, and HSBC have partnered with Google Cloud, Azure, and AWS for cloud-based front and back-office operational models.

Big Data Analytics 

  • People generate more than 2.5 quintillion bytes of data in a day. This mammoth data needs advanced tech support to manage, analyze, and utilize. 

  • Digital penetration in remote corners of India will further increase data output.

  • Data helps to analyze product information, customer base, and market trends, and detect financial frauds.

Prescriptive Security System 

  • This cutting-edge technology recognizes multiple problems in milliseconds. This system uses machine learning and analytics for analyzing historical data.  

  • Less threat means a safer system for banking.

  • It minimizes the time taken to recognize the threat to the system and saves lots of banking time. 

  • It improves faster resolution of problems and better UX.

  • Less threat means a safer system for banking.

  • The system can adopt and implement services at a greater speed.

Blockchain Technology 

  • A multi-layered decentralized system for safe fund transfer, deposit, and many more services 

  • A cost-effective and faster method for international financial transactions

  • We live in an age where information flows globally in less than a second. Blockchain will provide reliable technology for international digital banking.

  • Lending is the primary activity of the banking system, and this technology makes lending faster, safe, and hassle-free.

These tools of Industrial Revolution 4.0 and Web 3.0 are disrupting banking system in India and across the World.

Next, we will go through the types of digital banks operational globally and what India is doing for the next wave of digital banking services.

Types of Digital Banks   

Neo-bank    

Neo-banking is modern virtual banking. It does not require any physical visits and transactions.
Customers can access the banking services remotely using a mobile app.
 

Challenger Bank    

These are cost-effective and customer’s friendly online banks. They function as the challengers to the traditional banking system. 

Challenger banks are popular in the UK for underserved customers.

New Bank and Non-Bank are other end-to-end full-stack digital banks operating globally.

Status of Digital Banking in India

RBI does not provide a license to banks offering services through the internet without a physical branch or office. Therefore, digital banks in India work as the distribution channel for existing banks. 

Some neobanks and challenger banks also work as innovation or capability partners of licensed traditional banks in India.

RBI Stand on Digital Banking

RBI Governor Shashikanta Das said, “RBI receives several suggestions on digital banking, but we believe end-to-end digital banking has few risks. Therefore, we have not accepted the format as an independent banking system.”

He continued, “We believe the best way for digital banking in India is to strengthen existing infrastructure for future banking challenges. Our Banks and NBFCs can apply tech solutions and deliver digital banking services.”

EASE 5.0

Minister of Finance and Corporate Affairs Nirmal Sitharaman launched EASENext or EASE 5.0 in April’22. It will pave the way for the next wave of digital banking for Public Sector Banks and customers.

Key Features of the program:

  • Indian Public Sector banks under Enhanced Access and Service Excellence (EASE 5.0) will establish separate verticals for analytics and big data. 

  • The purpose of the program is to integrate all data sources. It will prepare the Indian banking system for shifting towards a data-based decision-making system.

  • EASE 5.0 will develop an inclusive, integrated, and data-driven digital banking system.

  • PSBs will come with several ‘digital only’ products and services in the next year.

  • The focus will be on minimum manual data entry, efficient underwriting for MSME & retail customers, and automated checks.

  • All banks will expand their portfolios with digital-only banking services and products. They will introduce enhance value-chain financing with innovative digital banking solutions.

  • Banks will leverage the latest technologies like analytics, AI, and ML for fraud detection, traffic analysis, customized recommendations (like Amazon, Flipkart, etc.), and so on.

Conclusion

India is on the threshold of the digital banking revolution. The latest technologies, research, and government support make banking feasible and accessible for all.

Digital banking has democratized banking. Join the virtual banking revolution today.

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How Big Data Enhances Banking and Financial Systems?  

The phenomenal growth of disruptive technologies has broken all records in the last decade. The banking industry has also evolved to move away from traditional processes and systems to embrace new-age technologies. One such paradigm is that of big data.

About ten to twenty years back, banks usually operated smoothly with employees recognizing most of their customers. Employees of branches knew their loyal customers with their details on their tips. Things are much different today. Situations have changed radically only to make things more complex and intricate. Banks have digitalized their services; remote banking has become a reality and customer retention has become the number one priority.    

Amidst all this, big data helps banks interpret the electronic trail of every customer. With information flowing in from multiple sources, big data helps in the online monitoring of clients and analysing user behaviours.
 

Big Data – What does it mean?     

The term ‘Big Data’ refers to a burgeoning volume of data or information. Two peculiar things about the data or information, in this case, are multi-structured and multi-format presence. Additionally, the data comes in from multiple sources for example, social media platforms, websites, blogs, e-commerce sites, data from desktops and mobiles, databases and archives, search bars, etc.   

The need for Big Data technology arises from the fact that conventional computing systems are unsuitable for processing data of such complicated nature.    

Role of Big Data in the Banking Industry      

Most banks today aim at offering their customers very focused and user-centric services. With personalization and customization becoming the core value add-ons in most industries, the banking industry too realizes the importance of delivering tailor-made financial solutions to their customers.  

  1. For Customers  

    Big data facilitates banks in doing so seamlessly. A growing number of banks today are using AI-powered apps that use predictive analytics to offer financial advice, recommendations, alerts, and notifications on spending, savings, investments, etc., in real-time to customers after duly understanding their financial dynamics.    

    The use of Big Data enhances customer experience as banking apps powered by analytics come up with useful recommendations based on their specific queries. Hence, users are offered advice on ways to reduce costs, enhance savings, make better investment decisions, and more. All such services have helped hundreds of users in making wiser decisions and avoiding defaulting or making incorrect payments for services.  

    Since the prompts are in real-time, it has helped customers in upholding prudent customer behaviours and identify opportunities to make meaningful profits and gains.  

  1. Banks  

    Banks on the other hand can apprehend customer spending habits, and earnings, and track the ever-changing patterns in consumer behaviour. This helps them offer optimized and personalized services to their clients, and that too, just at the right time. Thus, the likelihood of enhancing conversion rates and increased returns make lucrative business sense.  

    Financial institutions and banks can readily access customer data that can be easily analysed at the backend to base decisions regarding extending credit to customers, etc. They can conduct risk assessments effectively helping in making informed decisions and preventing fraud. This also is a big asset in maintaining compliance issues, helping reduce overhead costs.

    Thus, banks use Big Data and associated technologies to help prevent fraudulent transactions, and money laundering. Banks reduce their credit risks, keep a close watch on the earnings and expenditure of clients, and most importantly, personalized products and services can be offered to clients clinching customer loyalty like never before.

Conclusion – Big Data’s Impact on the Financial Industry   

The entire contribution of Big Data in the financial industry revolves around three crucial pillars:     

  1. Human Resources – due to Big Data, workflows have been optimized with a reduction in manual errors and removal of redundancy in work. Employees are empowered to take bigger challenges helping improve their performance and meet their KPIs. The technology has also helped in reducing back-office processing costs.     

  2. End-user Experience – with Big Data, the industry players are now able to offer optimized services to their customers in terms of tailored and personalized packages and products. The BFSI sector which includes banking, financial services, and insurance service providers is now better able to grasp the pain and gain points of their customers and accordingly offer services.   

  3. Enhancing Operations – Big Data has helped the sector revert to clients and assist customers in a short duration. Bulk transactions can be processed in minutes and with agility. Fraud can be detected successfully, illegalities can be removed, compliances ensured, and all of this in a cost-effective and timely manner.    

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How Open Banking could be used in The Pensions Industry

Open Banking is one of the modern methods adopted by the banking industry wherein third-party services providers are involved in payment and financial services. These service providers can offer their services by accessing data from banks and FIs using APIs or application programming interfaces. This form of banking is gaining popularity as it facilitates faster and more secure transactions, is remotely available, and can be accessed from across the world.  

Open Banking has been a part of the disruptive technology culture that has hit the financial service industry. As it puts the entire control in the hands of the consumer, it is more powerful than intended. The fact that open banking helps create value add-ons, for example understanding consumer buying habits and their financial situation to empower customers to make better decisions and budget optimally 

This article will talk of how open banking can help the pensions industry. It is imperative to say that the technology can be used by the industry but the responsibility of using it is completely on the players of the industry.

What is Pension?  

Before we explore how open banking is and can make a difference to the pensions industry, let us understand what a pension fund is. It is a fund where capital is accumulated so that it can be paid out to employees on retirement at the end of their careers as a pension.  

Here are the ways that Open Banking can be used in the pensions industry:  

  1. Open Banking is helping the pension industry go paperless.

    Open banking is a technology that helps makes the countless back-office processes related to opening pension accounts a hassle-free affair. Part of it is because customers can use their phones to open their pension accounts without the need to involve papers and documents. Take the case of Bank of India which has recently joined hands with the Provident Fund Regulatory and Development Authority (PFRDA), the pension fund regulator in India that enable customers to use their phones to open their National Pension System or NPS accounts. With the help of the third-party app, customers can scan a QR code that will take them directly to the homepage of NPS. All they need to fill in is their Aadhaar details and their photos and other details will automatically be updated from Digi Locker.  

  1. Open banking makes payments and contributions a simple process.

    Customers who need to have their payments initiated can take the help of the pension management app without leaving the app, they can select the concerned bank from the list. The app then directs the customer to the banking service provider’s app. The need for manual presence or transaction is completely removed which makes it all very convenient. Customers also are spared from queuing up at banks for depositing money in their pension accounts. Customers can also choose to automate their savings. Open Banking analyses the balance in the bank account of the customer every month and if there is any money left, it is automatically transferred to the pensions account. It works like auto-enrolment with the objective that all concerned benefit from pension schemes.   

  1. Account Information Services  

    Open Banking helps customers have a better view of their financial standing. It helps them get valuable insights with all the consolidated information in one place. This is done through AIS or Account Information Services. AIS simply integrates banking apps and other financial services apps so that customers get a holistic view of their financial condition in one go. This means that they can see the balance in their pension account live and in real-time.   

  1. Keeping a track of old pensions  

    When customers change jobs, they can very well lose track of their old pension funds and accounts. But with the help of this new technology, it is possible to consolidate all the pension funds and stay informed. This means that users are in control as they have information not just about the pensions in their existing workplace but also all the old pension accounts. They can initiate the transfer of all the old pensions to a single account – that of the present employer.   

Users no longer need to remember the pension policy numbers or the old employer/provider’s name and other details. The entire information is available in the apps thanks to open technology. The transfer of pension funds also becomes faster for all the stakeholders including pension providers. It also facilitates quicker processing time for providers as customers no longer need to engage with the customer service department to source information about their pension account and other details. This leaves them more time to focus on processing pension transfers and disbursements.   

Conclusion  

Open Banking has evolved pretty fast in the last couple of years. In India, 2021 can rightly be called the ‘Year of Open Banking.’ Even as Banking-as-a-Service gained momentum in the country, most financial institutions including banks and pension providers are gradually adopting this new-age technology to optimize their services.   

 

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Why is foreign Private capital still betting on India?

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Impact of IT on Banking System  

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8 things you should know about Fintech

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Will Metaverse Change Our Life? Is that the Future Of Technology?

‘Metaverse’ has suddenly become a buzzword. What is this new technological regime that has the likes of Mark Zuckerberg and Satya Nadella promoting and propagating it at public events? How different is this 3D universe going to be from the cyberspace that we are so accustomed to? And, why is it being heralded as the technology of the future?

This article will answer a few of these questions giving clarity on what Metaverse is capable of.

What is Metaverse?

The metaverse is an alternate virtual reality universe having shared 3D spaces where people can attend virtual events and interact with one another. In the metaverse, people can build great architectural structures, host events, and get a good income as well. The metaverse is the future place for social engagements, and business meetings, giving users the freedom to create anything they want.

The metaverse is a concept of a persistent, online, 3D universe combining various virtual spaces. It can be imagined as a future iteration of the internet. With metaverse, people can work, meet, play, and socialize together in these 3D spaces.

Now the metaverse is changing our lives in a much greater and more impactful way. In this blog, we will discuss how Metaverse will affect business, communication, education, entertainment, gaming, and travel, among many other industries. Below is a list of some of the ways the metaverse will affect our lives, and what the future of the metaverse looks like in each industry.

Business

Advanced technologies like video calling, remote conferencing, and online team collaboration tools have made it possible for people to work together in real-time regardless without connecting physically. Metaverse has the power to take all of this to another level notches higher than how things work in the present day. For example:

  • Remote working, as we know it today, will be jolted with mixed reality as VR and AR are stretched into the metaverse realm to offer physical-world experiences. For example, you can meet colleagues, peers, and clients, shake hands with them, and feel the grip of the handshake as if you are in the real world, even when you are miles away from each other.
  • Develop stronger bonds and team environments even if you are connected remotely.
  • Working in the same virtual shared space with one another when the location does not matter.
  • Helps increase overall productivity.
  • Lowers or eliminates business-related travel expenses
  • The metaverse holds the promise of offering a unique way for sellers and buyers to connect. For example, Instagram shopping can become an even more immersive experience as buyers can pick products in the physical world or virtual world simultaneously. It means improved business opportunities for sellers.

Moreover, metaverse lets you work in any kind of setting. For instance, suppose you want to work from some hill station, the metaverse will change the setting on demand. Then, once you are done with a big project, you can instantly teleport back to showcase your work to others.

Banking

Metaverse is all poised to add a touch of emotions to the banking industry. Typically, banks are thought to be pretty disconnected. But, this new 3D space is going to change that. It will bring in an element of humanity to FIs strengthening customer relationships. Banks can target the young tech-savvy generation with their virtual branches that can be visited by customers in the Metaverse space.

Not just that, Metaverse will facilitate the creation of new service points. For example, virtual ATMs from where customers can withdraw money. They can touch base and speak with the avatars of their financial advisors, take loans against cryptocurrencies, and more. The new world has a lot of untapped factors that the industry can dive into.

Communication

The metaverse is bringing significant changes in transforming the world of communication by:

  • Letting you interact with anyone from all over the world.
  • You can experience others’ facial expressions and body language
  • You can create an online identity for yourself through our own avatar
  • You can enjoy events together with others irrespective of whether the group is in the real or virtual world.

Education

In the future, virtual worlds will be the cornerstone of the metaverse. The metaverse will revamp the entire education system by:

  • Allowing the learner to be present in a class or learning ecosystem in a mixed reality model where you have a real-life experience of the things you are studying. Just imagine if you are learning about the dinosaurs, and how you would feel if you could actually be present in the same environment as the dinosaurs.
  • Giving students practical experience
  • Letting them learn from anywhere
  • Lowering the overall cost and entrance fees

What is the Future of Metaverse?

There are three possible outcomes of the metaverse in the future.

The first possibility talks about the metaverse specializing in things it is good at but never really reaching the status of a general-purpose platform. In this case, metaverse exists as a fragmented marketplace but never as an integrated solution in the user’s life.

The second scenario is that there could be multiple metaverses with only a few big names dominating the scene. And the third scenario could be where the metaverse becomes a part of our daily life with the physical and the virtual world seamlessly integrated.
it is in its nascent stage at the moment and it is difficult to predict which way metaverse will actually go. But a lot of it will depend on the following factors:

  • The level of integration and standardization.
  • The kind of market leaders that come up or the level of competition in this gamut.
  • How intuitive and user-friendly is the user interface?
  • What role does the government play in regulating the content and conduct of the players?
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New Fintech Cybersecurity To keep BFSI Sector Safe

In the world of digitization, everything is just a few clicks away from us. But at the same time, it has become a cause of concern for businesses as they have to deal with increased cyber-attacks. Among various industries getting targeted by cyber-attacks, BFSI (Banking, Financial Service, and Insurance) is no exception to it.

Since the BFSI sector has the most crucial data, so they always remain the most obvious target among the hackers and that is why security must be prioritize. Over the last few years, there has been a significant surge in cybercrimes due to the establishment of more online businesses and due to shifting to the cloud platform.

Thus, it becomes more important for BFSI organizations to adopt a comprehensive security strategy to deal with ongoing cybercrimes. Staying updated about the latest cybersecurity trends for BSFI would surely help a lot. But before talking about the latest trends, let’s understand the kind of threats faced by the Fintech sector.

Cybersecurity concerns- The main concern in FinTech Sector

Data security in FinTech is the major concern among the majority of the businesses. As per the reports, capital market firms and banks spend almost millions of amount each year to improve the cybersecurity of their business.

Cyber hackers can exploit system weaknesses and access crucial data and use the same for financial fraud and data theft. And the worst part is that most companies come to know about the attacks when it’s too late. So, it is important to reach out before something big happens and destroys the years of reputation of your business in just a single day.

Proactive cybersecurity solutions facilitate Fintech businesses to lower the overall risk linked to their online business.

Kinds of threats in the Fintech sector

With cybersecurity being quite a challenging task, the chances of mistakes are higher high, creating ample opportunities for criminals. Some of the common cybersecurity threats for BFSI sector include:

·       Malware

·       False identity phishing

·       Application data leaks

·       Money laundering

·       Identity theft

Let’s discuss some of the Banking, Financial Service, and Insurance (BFSI) Cybersecurity Trends that will help keep the BFSI sector safe.

Some effective Cybersecurity Solutions in Fintech

There are several effective practices that can be used to build a good Fintech cybersecurity solution:

Data encryption

Encryption ensures better protection for digital information. It is conducted with the help of various algorithms like 3DES or RSA, and data can be protected by establishing token vaults and tokenization of data.

Limited access to information

Access to information must be strictly regulated and must be given to a few users only who can access sensitive information. Furthermore, a solution must be used to track all the interactions with information databases.

Better and more advanced authentication methods

Every Fintech business must use strong passwords. But along with that, it is important to ensure the top level of security by using some advanced authentication technologies, like one-time passwords, short sessions, etc.

Deploy AI Technology within your Business

Another way is to use hi-tech AI (Artificial Intelligence) and ML (Machine Learning) technologies to predict and take accurate measures to prevent financial fraud in the beginning. With the revolution of more technologies, AI can prove beneficial in improving overall security by analyzing vast volumes of data faster and by detecting unauthorized usage.

Deploying an effective and robust cloud security strategy ensures that best is done to keeps your company and customers safe. Securing the cloud improves the protection of your business against all sorts of ongoing and emerging threats.

Use SASE Solutions

SASE or Secure Access Service Edge network architecture is quite similar to multi-cloud storage technology. The SASE network architecture uses the combination of several systems together and connects security solutions to give the desired results. More FinTech’s use SASE solutions to keep their vital essential assets safe and secured from functionality.

Conclusion

In this article, we have discussed the most common cybersecurity threats for BFSI sector, the latest cybersecurity solutions for BSFI, and some practices that help enhance a company’s levels of security. The financial sector is one of the key industry verticals that has witnessed a steep rise in cyber-attacks. Since financial organizations have to store and process consumer data, particularly the ones offering financial services to retail and commercial consumers, so they have become the obvious target of hackers.

Thus, it becomes crucial to deploy a strong cybersecurity strategy involving more than just safeguarding sensitive data and systems from harmful external attacks but also ensuring greater data privacy, and effective vulnerability management.