Trends in FINTECH and Analytics Industry

Global Revenues from Artificial Intelligence (AI) Expected to Reach $46bn by 2020 as per Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide from International Data Corporation (IDC). Funding in AI based businesses were 658 mn $ in year 2016 up from 160 mn $ in 2012 out of which 62% share was accounted by US. 

Bengaluru will house the country’s first multi-faceted artificial intelligence and robotics centre to tap the potential of data analytics, an emerging technology, for various eco-systems in the state. The centre will come up at the Indian Institute of Information Technology (IIIT) campus in Bengaluru and the state government has earmarked an initial grant of Rs five crore for the purpose. There are plans to offer courses for students on various aspects of data analytics and related fields 

 Nasscom is working on a policy framework on AI given the global concerns & to study the new technologies & suggest a framework for its adoption. A policy group has been created by the Ministry of Electronics and Information Technology with representation from the academia and Nasscom for the industry’s perspective. The policy group will focus on aspects like skilling the workforce, privacy, security and fixing responsibility if anything goes wrong, he added.

A report by World Economic Forum titled Beyond Fintech: A Pragmatic Assessment of Disruptive Potential in Financial Services, highlights that cloud computing, customer-facing artificial intelligence (AI) and advanced analytics are three capabilities that are becoming critical to the competitive differentiation of financial institutions. These capabilities are also where technology giants like Google, Amazon, Facebook and Apple have far deeper experience than legacy banking organizations. As a result, many banks and insurers are turning to these technology and even Fintech firms to provide these core functions.

The Fintech peer-to-peer lending (P2P) platforms will be regulated by the Reserve Bank of India (RBI), according to a government of India notification released recently. The gazette notification stated that all the P2P loan platforms will be treated as non-banking financial companies (NBFCs) and will be brought under the ambit of the banking regulator.