&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner.webp" alt="M2P Fintech" title="" width="100%" height="529">Decades back, our banking systems were massive local servers poised at a physical location of a bank. The conversation between branches happened only at a specific time. Any transactions that occurred after were reserved for another day.The local servers handled the heavy load of deposits, account openings, loans, and credit processing in its designated area. So, going to the bank to avail these services required planning downright to its every tiny detail.Fast-forward a few decades, banking has taken a its digital avatar where traditional banks and new-age neo banks compete for customer attention and retention. Traditional banks are now making the hard choice of restructuring the legacy systems. But, they face the unique challenge of data management and processing.Just to render swift and intelligent services, they need to leverage analytics, break down data silos and restructure data according to the needs of the business. The vast amount of data generated brings the points of scalability and flexibility into focus. It has driven banks towards a service-based delivery model.The primary challenge that banks face is in consolidating data and offering contextual banking. The legacy systems are often limited by performance and horizontal scalability. They also have a minimal understanding of polymorphic data handling capabilities.This is where APIs come to the rescue; as banking is a global transaction exercise, they seamlessly integrate as a plug-n-play platform. With <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neo-banking</a> and <a class="link" href="https://m2pfintech.com/blog/open-banking-a-primer-2/">open banking</a> on the rise, <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">banking APIs</a> offer the following benefits:<ul class="list-node" id="78x0lme2c"><li>Multiple platform data aggregation and gain a higher share of target customers</li><li>Enhanced operational efficiencies with automated processes</li><li>Niche digital user experience</li><li>Potential to scale complex operations with minimal effort</li></ul>Many banks have integrated APIs as microservices and adapt cloud-based processes whilst reducing their dependency on the core banking system. Furthermore, APIs have helped improve a bank’s or any financial institution’s native service and offerings.To sum up, APIs have enhanced banking services and have helped craft a user-driven experience that focuses on experiential generation.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Transactional to experiential banking- The Paradigm Shift

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-7-1-3.webp" alt="M2P Fintech" title="" id="1rpwrq7ge" width="100%" height="447">Like every other English, the term over-banked has its share of meanings:<ul class="list-node" id="23k37tfcl"><li>It denotes a place with an excessive number of banks.</li><li>It also indicates people with too many bank accounts.</li></ul>But the true meaning of the word is that your watch is malfunctioning, and you need to get it repaired.Coming back to the people’s perspective of the overbanked, they are the ones who are financially literate with efficient money management skills. They get the most out of their bank accounts as banks operate on a minimum balance model with numerous benefits for every account category.In countries like the USA, the overbanked often rely on sites like Mint.com, Personal Capital, or LearnVest to manage all their accounts in one platform. They can oversee and make decisions while having a 360° view of their financial activities.In fact, one of our customers, Finin, a Bengaluru-based startup and India’s first-ever neo-banking platform, offers the functionality of viewing different bank accounts aboard their platform. They offer account aggregation, bill and subscription management, smart budgeting, and goal-based saving.With all bank accounts in one place, the app would understand the bill, subscription, and EMI cycle of the consumer and tell you what your future expenses will be. The initiative is to build a savings first consumer-focused <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neo bank</a> that will collate the many concepts related to wealth management into today’s Fintech scenario.Such apps would take what is known as a&nbsp;“Nudge approach,”&nbsp;where it will alert you about your spending behavior. With Artificial Intelligence and Machine Language, an individual’s saving and spending behavior is also understood, thereby providing a hyper-personalized service.The Overbanked tend to make decisions based on how much they gain; thus, the “relationship” with an institution is usually dismissed. This is where FinTech's use hyper-personalization as a hook to reel in today’s millennials. They aim to create an incredible user experience for the overbanked with financial literacy and freedom at its core.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Why do the overbanked need Fintech?

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-1251-2.webp" alt="M2P Fintech" title="" id="g4x9lr2sv" width="100%" height="479">Bridging the shortcomings of traditional banking through integrated value chains and regulatory requirements, <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neobanks</a> today offers a holistic twist to banking services. User-friendly and completely digital, these banks work on referral-based acquisition and competitive pricing.With no banking license of their own, neobanks partners with traditional banks to offer their service suite. While this might be a pain point, neobanks target niche micro-segments like the Gen-Z because of their higher transaction volumes. Coupled with Data Analytics, neobanks bring forth innovative solutions to help individuals keep better track of their finances.For instance, our client Finin, India’s first neo bank, has brought on a feature where users can have a unified view of their bank accounts via their platform. It helps a user to keep better track and plan their financial journey.<h2 class="heading-node" id="27ed">Unbundled Banking</h2>Neobanks today are focusing on offering one type of product/service with complete functionalities. They operate with customized tech stack modules aimed at niche segments with user convenience as the focal point. Some of the top global neobanks are Revolut, Monzo, WeBank, Chime, etc.Paradoxically, legacy banking institutions cannot create these experiences as they face redundant processes, <a class="link" href="https://m2pfintech.com/blog/why-payments-interoperability-is-a-must-for-todays-generation/">interoperability</a>, etc. Fintech professionals realized that an obsolete technology stack was limiting the interoperability of traditional banking. This, in turn, guided the notion of Unbundled Banking, with neobanks steering the helm.Unbundled banking further narrowed that focus on customer experience, user convenience, and simplified processes. In this approach, anyone can launch banking products minus the need to go through a rigorous process of setting up a bank.<h2 class="heading-node" id="d0fd">Neobanking Revenue Model</h2>Neobanks operate on a strong cost-efficient model backed by less complex IT systems. So, their revenue model depends on the kind of products and services offered by them. Cross-selling of products/services to niche customer segments also acts as a secondary revenue stream for neobanks.They are driven by data-based decisions that depend on a decision-making model. Neobanks gather consumer data and analyze them and predict consumer behavior. These predictions help to offer customized services to their target customers. By deploying AI-driven chatbots, video chats, and data analytics, neobanks are available to customers as a cost-effective banking service right at their fingertips.Neobanks cross-sell and generate secondary revenue streams with a range of customized offerings suitable to customer’s needs. They also offer payments and accounts back-end platforms for other fintech companies to build their own interface on top of it.<img src="https://miro.medium.com/max/1400/1*ccQft1zHg2RQupLqXoK1YA.png" alt="Neobanks’s revenue model" title="" width="100%" height="306">Plug and Play solutions with 3rd party service providers with ease and data insights. With this, they can offer a range of products and services based on customer appetite and financial goals to boost up the secondary revenue lines and opportunities for cross-selling.&nbsp;Boosting lending options to customers and the SME sector will help generate revenue options.<h2 class="heading-node" id="6d68">Neobanks &amp; the less-digitally savvy users</h2>The audience that comprises this segment is often elderly and rural customers; capturing their trust is quite an uphill task for neobanks. They gain such customers with a free account and low fees and budgeting tools and cash projections based on past spending, and ‘savings pots’ for spend categorization. Offerings like High-Yield Savings Accounts and easy money movement through lower fees &amp; charges are some ways.Neobank growth can be accelerated through adaptable services and convenience in money transfer like cheaper lending rates and better rural audiences’ products. Creditors can choose borrowers and information from diverse sources and technology-based lending.&nbsp;Like how social media platforms have pulled in rural customers, neobanks also need to create awareness through their user-friendly applications.Reduced data rates &amp; smartphone prices will also encourage rural customers to use neobanking apps and gain trust.<h3 class="heading-node" id="e927">Neobanks &amp; Transparency</h3>The issue of banking transparency is closely linked to <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">financial inclusion</a>. Neobanking transparency can be improved through dashboards, reports across products with enhanced interfaces, and easy-to-understand services such as payments, payables and receivables, and bank statements. They must explain real-time notifications, any charges, and penalties incurred by the customer too. They should send instant alerts to customers to know exactly what is going on with their account.<h3 class="heading-node" id="2fb2">Security &amp; Privacy</h3>Neobanks were the primary users of security-enhancing models. These were MCC block, single-use <a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-virtual-cards/">virtual cards</a>, and tokenized online transactions. They rely on security and safety when designing platforms, like data localization or 2-factor authentications (2FA) for card-based transactions.Neobanking enables third-party financial service providers (TPPs) to access customer data from banks or financial institutions. They must maintain robust online anti-fraud systems and inform customers of breaches as soon as it happens.Customer permission is required to ensure data privacy or share certain information with banks or providers. For instance, if the customer gave consent, they can share financial data like spending habits and regular payments with other banks.Providers must comply with <a class="link" href="https://m2pfintech.com/blog/gdpr-in-a-nutshell/">GDPR regulation</a> and data protection rules. They must provide transparency on how and for what the data will be used, for how long before they get a customer to sign up.<h3 class="heading-node" id="04ca">Trust</h3>Neobanks have strong drivers for securing their customers’ accounts, which are reputation management &amp; consumer perception. Developing trust can also be a challenging factor for loyal traditional banking customers.&nbsp;Fines, data breaches, and attacks can significantly damage consumer trust in non-traditional banks. Therefore, neobanks must protect consumers from mobile Trojans phishing scams and account takeover attempts. They can earn consumer trust through advanced authentication concepts such as dynamic linking, device binding for mobile apps, mobile application shielding, and transaction risk analyses.Strong privacy and data protection policies like removal of hidden fees and charges can help build consumer confidence in neobanks.<img src="https://miro.medium.com/max/1400/1*0VH_WhJDpgy4AEpgB9ivEA.png" alt="Advantages of Neobanks" title="" width="100%" height="306">Neobanks are trying to simplify the ways of transacting through digital mediums through:1. Simplified process with minimum steps to complete with minimum redirect for the transaction/payment 2. Tightly tying up and different players in the ecosystem (Retailers, Digital Service Providers, Issuer and Acquirer banks, etc.) 3. Standardization across devices and internet browsers 4. Compatibility across platform and technologies 5. Educating conventional customers on digital payment and ensuring that money is safe.<h2 class="heading-node" id="1e23">Neobanks Vs. Traditional Banks</h2>Traditional banks are focused on product-centric models, meaning high verticalization of products, no strong communities built around the brand/product, increased customer acquisition cost, and legacy technology infrastructure.But currently, traditional banks have been increasingly offering unique products and services to customers. One might wonder how neobanks will continue to differentiate themselves from conventional banking as a result.Neobanks can tackle product competition by keeping the focus on a platform-centric model. For example, high community engagement with the product, product horizontalization with best-in-class apps, open-banking APIs, and capitalize on a mobile-only approach for the low customer acquisition cost. A lower dependency on 3rd party providers and real-time data integration and management might help too. Above all, customer-centric organizational design and customer needs to drive data architecture.Neobanks create an ecosystem of services around their infrastructure, shifting the banking value from branches to their <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">API</a> layer.&nbsp;They expand their user base by providing services on a 3rd party platform or offering 3rd party services on their platform.The neobanks’ value propositions &amp; CLV is based on lower costs, personalized insights, predictive intelligence, user-friendly interfaces, easy accessibility, and simplified processes.<h2 class="heading-node" id="17cf">The Global Way Forward</h2>On a global scale, neobanks are on an upward growth trajectory in Europe, followed by America. The real neobank growth is being unlocked in the APAC region, with many countries devising their virtual banking systems.Hong Kong, Taiwan, and Singapore have already implemented virtual banking licensing, with Thailand and Malaysia following suit.In India, neobanks are still nascent. Still, they are playing a leading role in helping small businesses to manage finances conveniently and comprehensively. The data below shows that the Indian neobanking market is growing fast:<ol class="list-node" id="701721vxm"><li>Average market maturity of India is 2–3+ years compared to 5–6 years+ in Europe and the US.</li><li>Number of neobanking players in India has gone up in the recent past compared to global markets.</li><li>Fund raised by Indian neobanks have gone up to $168 million</li><li>Indian neobanks are boosting up the competition through value-added services apart from standard offerings.</li><li>Indian Government supports the MSME sector through different schemes that open up Indian SME neobanks opportunities.</li></ol>Neobanks are expected to explore strategic partnerships with&nbsp;established traditional banks to grow in India. The Reserve Bank of India (RBI) has not permitted a digital license to neobanks yet. RBI has initiated the change by providing a license to small finance and payment banks, to begin with. Banking Industry experts are hopeful that RBI will also work on policies to approve banking license for digital-only or neobanks soon in the post-covid-19 era. This will keep the fate of neobanks blurry.<h2 class="heading-node" id="c577">Conclusion</h2>Fintech will continue to push neobanking as the new normal. The pandemic is just a catalyst to ignite the digital transformation. Neobanks are challenging mainstream traditional banks. They are backed up by digital backing licenses and control most of the value chain from front-end to back-end.Till then, neobanks in India will have no option but to continue partnering with the traditional banks to offer services.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Neobanking - The Rise of New-age Banking

<html><head></head><body><img class="alignnone size-full wp-image-2580" src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8-13.webp" alt="M2P Fintech" width="100%" height="100%">

<a href="https://m2pfintech.com/blog/pci-dss-the-payments-armour/">PCI DSS stands for Payment Card Industry Data Security Standard</a>. A collaboration between top reputed <a href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit card</a> brands such as American Express, Discover, JCB, Mastercard, and Visa in 2004 resulted in PCI-DSS launch. Organizations who store or process, or transmit the cardholder data either as clear or in an encrypted manner should comply with PCI regulations.

A short survey showed that most people give the above description when quizzed about PCI-DSS. When we further probed them about the levels present in this compliance, we came up short. So, we came up with a quick read of the PCI-DSS compliance levels.
<h2 id="6c0f" class="rz sa ps bn ds sb sc sd fr se sf sg fv sh si sj fz sk sl sm gd sn so sp gh sq dr">PCI DSS Compliance levels</h2>
Divided into four levels, the PCI Compliance levels are based on the number of credit or debit card transactions processed by a business annually. These levels determine what needs to be done by an enterprise to remain compliant.
Level 1:
Applies to merchants who process more than six million real-world credit or debit card transactions annually. An authorized PCI Qualified Security Assessor will conduct an annual internal audit and an on-site evaluation of the organization to:
· Authenticate the assessment’s scope;
· Evaluate technical information and documentation;
· See whether the PCI-DSS standards are being met;
· Assist and guide the compliance process and
· Also, evaluate the compensating controls
On successful evaluation, the QSA will present an RoC (Report on Compliance) to the organization’s acquiring bank, thereby demonstrating its compliance.
Level 2:
Applies to merchants who process between one and six million real-world credit or debit card transactions. Security testing reports on network hosts and applications should be completed on a defined frequency. The RoC is also applicable for level 2 organizations.
Level 3:
Applies to merchants who process annually between 20,000 and one million e-commerce transactions. A yearly assessment must be done using the relevant SAQ (Self-Assessment Questionnaire)along with a quarterly PCI scan.
Level 4:
Applies to merchants who process annually fewer than 20,000 e-commerce transactions or those who process up to one million real-world transactions. They must complete a yearly assessment using the SAQ and a quarterly PCI scan.

<h2 id="7604" class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">What is this Self-assessment questionnaire?</h2>
PCI-DSS lists several kinds of SAQs for every level, and it is also based on how the merchant processes card information. Given below are some of the types of SAQs applicable to levels 2–4:
SAQ A: Merchants who outsource their entire card data processing to certified third parties. The transactions also include e-commerce transactions.
SAQ A-EP: Applies to E-commerce merchants who outsource their payment processing but not the site’s administration.
SAQ B: Applies to E-commerce merchants who don’t receive cardholder data, but they have control over the process through which data is redirected to a third-party payment processor.
SAQ B-IP: It applies to merchants who don’t store cardholder data in electronic form but will use IP-connected point-of-interaction devices. These merchants may handle either card-present or card-not-present transactions.
SAQ C-VT: Applies to merchants who process cardholder data via a virtual payment terminal.
You must select the right SAQ because every level has compliance requirements based on how payment card data is processed.

<h2 class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">How to become a PCI DSS compliant</h2>
The PCI DSS specifies six control objectives for an organization to achieve compliance:
1. Build and maintain a secure network
2. Protect cardholder data
3. Maintaining a vulnerability management program
4. Implementing strong access control measures
5. Regular monitoring and testing of networks
6. Maintaining an information security policy

<h2 id="2e3a" class="rz sa ps bn ds sb aed sd fr se aee sg fv sh aef sj fz sk aeg sm gd sn aeh sp gh sq dr">The penalties of non-compliance</h2>
As cardholder data is considered personal data, a PCI DSS breach can also be regarded as equal to a <a href="https://m2pfintech.com/blog/gdpr-in-a-nutshell/">GDPR</a> breach. If PCI regulations are not adhered to, organizations will face severe financial penalties or even lose their facility to accept card payments.
In short, PCI-DSS is a standard that ensures trust, business continuity, and safety of the cardholder data.
<a href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.

Follow us on&nbsp;<a href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.</body></html>

PCI DSS- A quick guide to its levels

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-7-7.webp" alt="M2P Fintech" title="" id="dfm3kye4j" width="100%" height="479">Traditional insurance firms are yet to touch the foreign shores of technology adoption or disruption. Nevertheless, this pandemic has Insurance players considering their strategies and adopting technology to retain its customer base.So far, many insurers or insurance companies have adopted a technology-based process only on a cellular level. But, given the wave of innovation, Insurance companies are yet to arm themselves for the upcoming digital transformation. That is where InsurTech comes in to save the day.<h2 class="heading-node" id="971b" style="text-align: justify">InsurTech- Overview</h2>InsurTech is a component of <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">Fintech</a> dedicated to delivering a complete set of <a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/">digital insurance solutions</a> and services. When FinTech started, it mostly worked with banks as partners and improved user experience through online/mobile banking or <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a>.As a striking contrast, InsurTech focuses on the consumer segment than the commercial one. The reason is that digital-savvy individuals consider insurance products like any other consumer goods and are willing to try or switch new insurance policies. They are incredibly comfortable in submitting an insurance claim online or browsing for insurance policies online.<h2 class="heading-node" id="d670" style="text-align: justify">Product Strategy and Value Chain</h2>Today, most InsurTech applications cover consumer insurance product lines like Property &amp; Casualty (P&amp;C), Non-Life Insurance, and Health Insurance. And so far, P&amp;C has been a significant contributor to InsurTech’s revenue.Moreover, with extensive real-time data collection and analysis, InsurTech minimizes the number of false insurance claims considerably compared to legacy systems. It’s interesting to see that the same P&amp;C insurance product’s value proposition differs between incumbents (existing insurance providers) and new entrants (tech-based insurance companies).Currently, InsurTech is targeting the sales, pricing, and distribution areas predominantly in the overall value chain. For higher growth, it should expand across the entire value system, including new product development, and start offering more commercial or retail and life insurance services.<h2 class="heading-node" id="e14b" style="text-align: justify">Technology Triangle and Benefits</h2>Most of the tech adoption has improved the method of delivering and buying claims and paying and billing. For instance, streamlining the claim disbursement user journey is of utmost importance to InsurTech.Today, they include as many digital touchpoints as websites, apps, smart devices, wearables, and much more. Additionally, they are keen on instantly issuing claims right away when the customer faces damage. Many InsurTech has already accepted digital card payments instead of checks from customers to disburse and process claims at lightning speed.Therefore, the existing programs in InsurTech revolve around providing a better customer experience, lowering acquisition costs, minimizing risks, increasing upsell, and cross-sell.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

InsurTech- The changing facets of the Insurance industry

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/banner.webp" alt="M2P Fintech" title="" width="100%" height="358">APIs, or small lines of code as we laymen understand it, is a capsule that powers <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">fintech</a>. And fintech is a term that points to a company or tech powering financial services.Right from simple chatbots, <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">payment processing</a> platforms to crypto and blockchain industries, the world of fintech is quite huge.Also known as financial infrastructure companies, fintech uses APIs to offer customer-centric products and fill the gaps of legacy banking practices.<h2 class="heading-node" id="0gw0m72nh" style="text-align: justify">What is an API?</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int1.webp" alt="M2P Fintech" title="" width="100%" height="358">The standard textbook definition of <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">APIs or Application Programming Interfaces</a> define them as a set of functions and syntax that create applications capable of accessing the data of an operating system, program, or just about any other service.For example, checking your bank balance via a <a class="link" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/">UPI</a> app is a classic API use in action. In fact, APIs are changing how we interact with the world, and all these actions happen in real-time.Besides, APIs come with a host of benefits in this post-fintech world:<h3 class="heading-node" id="74da" style="text-align: justify">Cost-effectiveness</h3>Decades ago, banks were only used for primitive services like opening and maintaining an account. Withdrawals and deposits dominated back in the day, and other services like investments were relatively rare. Even if they were available, it was a costly affair. But now, with the help of APIs, we have access to a wide range of banking services, right from the comfort of our homes.<h3 class="heading-node" id="854f" style="text-align: justify">Empowers fintech</h3>Earlier banks were quite secretive about their client information. It was a good thing, but it did not give accessibility. But now APIs have opened the floodgates, and many apps and services have come to the fore. The best feature is that the customer will still be able to retain control of their privacy.<h3 class="heading-node" id="f041" style="text-align: justify">Real-time access</h3>Now banking is no more a 9 to 7 activity. It is available to a customer 24/7 and from any part of the world. APIs have achieved real-time money transference with minimal effort. They have also given companies access to a repository of data. It can be used to create highly personalized financial services and enhance the decision capabilities of the business.<blockquote class="block-node" id="ves8dufxd">APIs have propelled Fintech as a “Here-to-stay technology.”</blockquote><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int3.webp" alt="M2P Fintech" title="" id="2v436t5s6" width="100%" height="358"><h2 class="heading-node" id="277b" style="text-align: justify">APIs in Fintech</h2><h3 class="heading-node" id="41ac" style="text-align: justify">The world of payments</h3><a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">Payment processing</a> APIs simplify and expand the payment options for merchants and customers. As we now shop online from any part of the world, merchants can accept payments through various payment methods. It streamlines the checkout process and offers options that a customer can comfortably choose.<h3 class="heading-node" id="cd48" style="text-align: justify">Peer to Peer management</h3>P2P was once a way to let users download files from other users, but now they are a general term in <a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/">lending</a> and currency. APIs in P2P not only facilitate transactions, but they also come with significantly lower operational costs. P2P lending also automates the lending process and shortens the time taken for loan approval to disbursal.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int4.webp" alt="M2P Fintech" title="" id="l45s7s8a2" width="100%" height="358"><h3 class="heading-node" id="4bfe" style="text-align: justify">Investments</h3>Investments are a platform that is usually available to a select few and is not for the unbanked. But APIs have simplified investments and provided access to many eager investors. They have been instrumental in capturing that hidden pool of customers who were intimidated by lengthy paperwork.<h3 class="heading-node" id="514d" style="text-align: justify">Endless possibilities</h3>The concept of API is fairly new and has a scope for endless possibilities. It has created an open marketplace for collaborative innovation among established financial institutions and upcoming Fintech companies.They have also brought forth a “Sandbox Option”, which gives entrepreneurs or businesses to see their ideas take life without the mandatory regulatory policies. On completion of a successful test run, the concept can be brought to fruition with necessary policies in place.<h2 class="heading-node" id="34ff" style="text-align: justify">What does the future hold?</h2>As detailed above, the APIs are here to stay with fintech focusing on creating ripples in every industry:<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int5.webp" alt="M2P Fintech" title="" id="6ngq1nlt6" width="100%" height="358"><ul class="list-node" id="7tsfddog6"><li>End-users&nbsp;— access to more personalized services and increased transparency</li><li>Developers&nbsp;— Create new areas of code that increase functionality and innovative services</li><li>Entrepreneurs — See their fintech ideas come to life and disrupt many industries</li><li>Banks&nbsp;— Create more revenue streams and expand their customer base</li></ul>In short, APIs have transformed fintech and banks as a platform that offers enhanced user experience with convenience at its core.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

The world of APIs- How they power Fintech?

<blockquote class="block-node" id="musdo3dd7"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8-2-4.webp" alt="M2P Fintech" title="" id="cwegdj29x" width="100%" height="351">What if I told you Fintech dates back to half a century? And it’s not a buzz word conjured up in the present, but one of the most disruptive technologies of the last five decades.Ready to explore the unchartered waters of <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">Fintech</a>?</blockquote> Then let me take you through a timeline:<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-13-1.webp" alt="M2P Fintech" title="" id="q5nkj7fnh" width="100%" height="358">So, now you know that right from checking your recent transaction via a banking app to scanning a QR to pay, everything is a classic use case of everyday Fintech.Indeed, today’s Fintech products and new business models are the results of the latest technologies disrupting traditional financial services such as investments, insurance, trading, <a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/">lending</a>, and <a class="link" href="https://m2pfintech.com/blog/banking-as-a-service-redefining-financial-services/">banking.</a>What is Fintech? How is it categorized?The term Fintech stands for Financial Technology. The application of programming, analytics, and technology to financial services and banking has brought forth an unimaginable revolution called Fintech. In short, you can say Finance + technology = Fintech.Moreover, in the last decade, the Fintech industry has gone through a wave of innovation. It has created new journeys for banks and businesses and transformed the way you pay, lend, borrow, save, invest, insure, and so on.From <a class="link" href="https://m2pfintech.com/blog/ready-to-sneak-peek-into-global-cashless-societies/">cashless</a> payments to<a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/"> digital lending</a>, from crowdfunding to <a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-virtual-cards/">virtual currencies</a>, from mobile banking to robot advisors, everything falls under this umbrella. All in all, you can conclude that it has touched almost all the verticals of the financial sector. Its sub-domains include Paytech, Bankingtech, Lendtech,<a class="link" href="https://m2pfintech.com/blog/insurtech-the-changing-facets-of-the-insurance-industry/"> Insurtech,</a> Wealthtech and Regtech.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-12-1.webp" alt="M2P Fintech" title="" id="q4o7m888l" width="100%" height="358"><h2 class="heading-node" id="ed70" style="text-align: justify">A Sneak Peek into the Onset of Fintech Globally and in India</h2>Right from 1950, <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">Fintech</a> has gone through many tremendous changes and growth by easing the lives of millions of customers worldwide. However, the latest Fintech boom can be attributed quite well to the new technology advancements and evident global events.To explain further, let me show you three striking realities that triggered the sky-rocketing growth of Fintech.<ul class="list-node" id="z6ujlvxil"><li>The infamous credit crisis of 2008 forced financial institutions to focus heavily on regulation and triggered innovation. To overcome this lag and to close the existing tech gap, many firms started developing mobile-first, <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">API</a>-enabled, and AI-driven bank solutions.</li><li>The 2016 Demonetization bolstered the usage of banking apps and digital payments. After this incident, the Indian Fintech start-up ecosystem grew at a faster rate and became a strong contributor.</li><li>The 2020 COVID Pandemic has made digital transfers a necessity rather than a convenience. For instance, online renewal payments for insurance has seen a considerable uptick globally.</li></ul><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-11-5.webp" alt="M2P Fintech" title="" width="100%" height="358">In simple words, Fintech has made the overall customer experience more straightforward and comfortable.Why do we need Fintech?When you observe traditional insurance, lending, and banking firms globally, you discover a common thing these legacy firms have. It is nothing but a vast pool of untapped customers and complicated processes. Fintechs act as a helping hand to serve these overlooked and overwrought customers.To elaborate, here is a sneak peek of these potential customer clusters:<ul class="list-node" id="1xbnvgudo"><li>Thousands of customers without bank accounts and with smartphones</li><li>Many authentic borrowers with a low credit score or bad credit history</li><li>More professionals wanting to manage their personal finance</li><li>Consumers looking for personalized insurance products</li><li>Many customers trusting robot-advisors over wealth managers and so on</li></ul>Further, they also simplify the process and make financial services more accessible.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-9-5.webp" alt="M2P Fintech" title="" id="oumayvwhq" width="100%" height="358">Fintechs today are breaking the mold by developing dedicated digital solutions for them, such as mobile banking, lending without banks, peer-to-peer borrowing/lending, payment APIs, and so on. In short, they are striving to create a much-awaited financial inclusion across economies.As customer adoption rates are higher than usual, many start-ups and investors today are exploring many facets of fintech inclusion. With countless Fintech enthusiasts around the corner, there’s no wonder why unique lending capabilities and payment technologies are emerging every day.The Ones to Watch: FintechTo sum it up, Fintech SaaS has the potential to transform consumer relationship with money. You can also think of Fintech as a <a class="link" href="https://m2pfintech.com/blog/banking-as-a-service-redefining-financial-services/">Bank-as-a-Service</a> version of traditional banking.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-10-3-1.webp" alt="M2P Fintech" title="" width="100%" height="358">Nevertheless, it can and will set the landscape of future banking and financial services. It is an ongoing journey, and emerging products will always be the result of regulations (banks), innovations (fintech), and customizations (end-user).Remember, it is more than a technology or a business model; It touches lives and makes incredible advances. If you want to keep track of something disruptive in the future, then Fintech is the one to watch.Want to know more about fintech, write to us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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