PRESENTED BY:

INNOVATIONS ANKITA GUPTA – 11

IN FINANCIAL ARCHIT GUPTA – 14

SERVICE
ARUSHI JANDIAL - 16

DAPINDER SINGH- 17

INDUSTRY KASHISH GUPTA - 25

INTRODUCTION

Financial services are the processes by which consumers or businesses acquire financial goods. Financial services are limited to the
activity of financial services firms and their professionals while financial products are the actual goods, accounts, or investments they
provide. For example, a payment system provider offers a financial service when it accepts and transfers funds between payers and
recipients. A financial advisor manages assets and offers advice on behalf of a client. The advisor does not directly provide investments
or any other product; rather, they facilitate the movement of funds between savers and the issuers of securities and other instruments.

• Financial services make up one of the economy's most important and influential sectors.

• Financial services are a broad range of more specific activities such as banking, investing, and insurance.

• Financial services are limited to the activity of financial services firms and their professionals while financial products are the actual
goods, accounts, or investments they provide.

Thus, financial services are very important and need constant innovations to cater to the growing needs of businesses and consumers.
INNOVATIONS IN FINANCIAL SERVICES

Rapidly advancing technologies, evolving customer

expectations and a changing regulatory landscape are
opening doors to disruptive innovation in financial
services. From crypto-currencies to big data to peer-to-
peer lending, Fintech innovations have captured the
attention and imagination of customers, investors and
incumbents. It is now becoming obvious that the
accelerating pace of technological change is the most
creative force—and also, the most destructive one—in
the financial services ecosystem today.

The recent innovations in financial services have come up

in the following areas:
INNOVATION IN PAYMENT SYSTEM
MAJOR INNOVATIONS IN THIS SECTOR

1
• MOBILE BANKING
2
• UPI PAYMENTS
3
• MOBILE WALLETS
4
• PAYMENT BANKS
5
• BLOCK CHAIN SYSTEM
 MOBILE BANKING

Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.).

There are three methods by which one can transfer funds

1. NEFT

2. RTGS

3. IMPS

Benefits Mobile banking includes the ability to bank anywhere and at any time.

Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.
UPI PAYMENTS

Unified Payment Interface is an instant real time payment system developed by National Payments Cooperation of India.

It facilitates peer to peer inter banking transactions.

The interface is regulated by the RBI.

It works by instantly transferring funds between two bank accounts on a Mobile Platform.
 DIGITAL WALLETS

A digital wallet (or e-wallet) is a software-based system that securely stores users' Payment Information and passwords for numerous
payment methods and websites. By using a digital wallet, users can complete purchases easily and quickly with near-field communications
technology. They can also create stronger passwords without worrying about whether they will be able to remember them later. Digital
wallets can be used in conjunction with Mobile Payment systems, which allow customers to pay for purchases with their mobiles.
 PAYMENT BANKS

It is an Indian new model of banks conceptualized by the RBI. These banks can accept a restricted deposit, which is
currently limited to Rs100,000 per customer and may be increased further. These banks cannot issue loans and credit
cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue ATM cards or
debit cards and provide online or mobile banking.
 BLOCK CHAIN SYSTEM

• It is also called as Distributed Ledger Technology.

• It is a shared, immutable ledger for recording transactions, tracking assets and building trust. It also consists of smart contracts.

• It allows anyone to transfer money to anyone, anywhere anonymously.

• Crypto currency transactions uses this system.

BENEFITS

1. Highly Secure

2. Decentralised System

3. Automation Capability
INNOVATIONS IN INSURANCE SECTOR
 INNOVATION AT PRODUCT LEVEL

 Easy Premium Payment Options- Now a days insurance

companies allow the customer to pay the premium on a
monthly or quarterly basis instead of only annual basis. This
helps the middle and lower income groups to buy and
maintain insurance.
 
For Example – Religare and MAXLife insurance offer monthly
premium paying option

 Also companies are using point systems to give additional

discounts on premium.

For Example- Recently Aditya Birla health insurance has come

up with a unique health product which rewards you for staying
fit. Each day you walk 10000 steps you accumulate points which
you can redeem at the time of renewal. And Bharti AXA’s ‘Pay
as you drive’ feature also works on point system.
 New and innovative Products- Companies are constantly working to make there
products more attractive to the customer and for that are constantly innovating and
offer new features and products which offer more return and risk cover.

For Example- Religare and Star Health Insurance offer cashless claim management.

 Also companies are making region wise adjustments to the products to better match
the requirements of the customer.

For Example- Increasing standard family size from 2+2 to 2+3 in India by Religare Health
Inc.

 COVID specific products- To address the health insurance requirements in this

pandemic, IRDA had instructed the insurers to come up with two COVID specific
products- corona Kavach and corona Rakshak. One covers your bill amount while
the other gives you a pre decided amount upon hospitalisation to take care of the
expenses.
CUSTOMER CENTRIC INNOVATIONS-
 Mobile Applications- Mobile application help in better connectivity between the customer & company
. Also helps the customer in keeping a record of important dates and information. For Eg- Religare has
Care Health app for the customer which keeps a record of customers policy and benefits available .

 Purchase Insurance Online- Customers can now buy insurance online themselves and get the
documentation done online only. The virtual processes have led to significant cost reduction and
speedy policy issuance.

 Online Verification and Authentication- Earlier the sales manager had to physically meet the
prospective client, explain the product and secure their signatures on multiple forms. Now this entire
process can be done online via video conferencing. To eliminate the need for signatures IRDA has
allowed OTP process for client validation. The medical professionals are conducting a tele-medical to
confirm the client’s medical history and present condition instead of physical medicals.

 Insurance Comparison Sites- Online Sites help customers to compare insurance policies of same or
different companies on basis of benefits and features. They also help in price comparison. For Eg-
PolicyBazar.com
 RECENT TRENDS
 Partnerships- Companies have entered into strategic alliances with distribution partners which can help increase the reach
of product. Typical partners include bank. With their strong branch network spanning across the nation, they are ideally
suited for distribution. It is of little surprise then that the top 3 private life insurer companies have bank as a partner- SBI
Life, HDFC Life and ICICI PRUDENTIAL.

 Use of AI- Artificial Intelligence is being used in every sector of economy . Same is the case for insurance sector also. AI
and Machine Learning is used to make important and calculated decisions. Also AI can be used to predict future and make
required decisions related to investments and market position.

 Use of block chains in insurance- Block chains have the potential to change how transactions are processed, and this
wave is coming to the insurance sector as well. The technology would process the transaction and settlement between
insurers and investors. This technology has the possibility to simplify and accelerate contract management. Each validated
contract on the open shared infrastructure contains data and self-executable codes inherent to that contract. When a
triggering event occurs, meeting the agreed conditions, the block chain smart contract picks up the predefined data
sources of all participants, and then automatically activates and determines pay-out to or from contract parties.
INNOVATION IN BANKING SECTOR
MAJOR INNOVATIONS IN THIS SECTOR

 Expanding Open Banking

 AI-Driven Predictive Banking
 Card less ATM service
 Digital banks
 Instant lending
 24*7 Fund Transfer
1. EXPANDING OPEN BANKING-

An increasing number of regulatory bodies globally are making it mandatory for banking organizations to allow
customers to share their data securely with third parties in a move to boost new financial services and enhance the
competition in the banking industry. Consumers have more freedom and control in the interaction .

Open banking APIs boost innovation and collaboration, and lead to growing banking ecosystems to make a
consumer's lifestyle better with more than just financial services. Because of consumer consent being a core part of
open banking strategy.
2- AI DRIVEN PREDICTIVE BANKING

Banks are now using internal and external data and building predictive profiles of customers in real time. With rich,
accurate and financially viable consumer data, financial institutions know their customers very well and can assess
their repayment capacity and decide on upper limits of loans to be sanctioned. They are also able to offer advice for
the future, while increasing security and efficiency.

3- CARD LESS ATM SERVICE

SBI has become the first Indian bank which allows customers to carry out ATM transactions effortlessly by using
their mobile banking app called YONO. Customers can go to the nearest SBI ATM .
 4- DIGITAL BANKS

There has been a rise of digital banks around the world as a lot of transactions are moving to digital channels and
also to combat the high cost of a traditional branch network. From launching digital-only banks to collecting
deposits, to using digital platforms for lending, investing and speciality services, banks and financial firms are
focusing on quality customer experiences and increased value for customers.

5- INSTANT LENDING
Instant loans are those types of loans which don't require too much of the documentation. The process is minimal
and convenient compared to the traditional bank loans. Instant loans are also termed as personal loan OR quick
loan.
6- 24*7 FUND TRANSFER

RBI has upgraded the fund transfer process significantly and has ensured availability of anytime electronic funds
transfer with the implementation of 24*7 NEFT. This has greatly empowered the people to access a bouquet of e-
payment options especially after the announcement of implementation of 24*7 RTGS from December 2020.
INNOVATIONS IN INVESTMENT
Investment for individual retail investor has traditionally been guided by a financial
planner.

Of late, owing to the market crisis and continued period of uncertainty, financial planners
have lost the customer trust. People today want objective advice and are sceptic of taking
advice from another human as human bias or simply own interest can bias the advice.

Some of the technological innovations witnessed in the field of investment management

are as follows:
1. ARTFICIAL INTELLIGENCE/ROBO ADVISORS: -

• Robot-advisors are online tools that automatically analyze a customer’s financial position and in return give them
tailored recommendations.

• Robo-advisors are the latest incarnation of financial advice and portfolio management, with fully-automated
algorithmic portfolio allocations and trade executions. Here the advice is automated and AI based. They work by
crunching complex algorithms to give the best advice to the investor.

• They are also capable of managing investment portfolios, typically by investing in established players’ products.
Some robo-advisors invest in passive investment portfolios only (like exchange-traded funds) and don’t allow
customers to modify investment strategies. Others permit active investing with some customer input (such as stock
selection).

• They ensure there is no bias advice and conflict of interest does not arise.
2. RETAIL ALGORITHMIC TRADING: -

• Retail algorithmic trading is another kind of platform that enables investors, even those with limited technical
knowledge, to easily build, test and execute trading algorithms.

• It is possible to customise the algorithm according to individual investor based on his risk appetite. It can take
into account various parameters like age, retirement corpus required, risk appetite, expected future inflows to
dish out the best advice.

• It does all of the above at a cheaper fee than a financial advisor.

3. ALTERNATIVE INVESTMENT FUNDS (AIF)

• AIF allow retail investors to invest in alternative areas which were earlier open for only large institutional
investors.

• Distribution of all wealth products like mutual funds, ETFs, annuities and insurance products by one provider has
gotten increasingly popularised and is seeing greater acceptance owing to convenience.

• Disruptive innovation in this sector includes the following characteristics: Lower entry barrier, customer
empowerment, transparency, convenience, personalised, and low cost.

• With the ability to provide superior value additions at low cost, new wealth management systems would soon
outdate the traditional systems.
INNOVATION IN CAPITAL RAISING
 Traditionally capital raising was facilitated by specialised financial institutions which would leverage their
deep expertise to identify excellent investment opportunities. It was not possible for a new and growing
company to secure large funding without taking the help of financial institutions like big investment banks.

 Now with the pace new start-ups are coming up, a series of alternative funding platforms have emerged,
providing greater access to capital raising activities to a large number of new companies and start-ups.
CROWD FUNDING

Crowdfunding is the practice of funding a project

or venture by raising small amounts of money
from a large number of people, typically via the
Internet.

Crowdfunding makes use of the easy accessibility of

vast networks of people through social media
Many of the crowd funding companies
have come up with Do-It-Yourself
campaigns to raise money through an
online platform.

Many crowdfunding projects are rewards-

based; investors may get to participate in
the launch of a new product or receive a
gift for their investment
FINTECH COMPANIES

Fintech is used to describe any company that is into financial technology

These are the companies that provide financial services using the internet, software,
mobile devices, cloud services or any other kind of technology. 

The ultimate aim of fintech is to ultimately, or in some form, replace the traditional payment
methods with digital solutions.
Fintech companies provide Loans to SME’s and
other startups with instant approval with the just a
click of a button.

They use big data analytics to help determine a

borrower’s creditworthiness
Thank You!

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