<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-2.webp" alt="M2P Fintech" title="" id="jc4mjh9mq" width="100%" height="317">Henry, an accountant, always takes the train on his way to the office. That particular day, he missed his usual cut-off time of leaving home and had to rush to the train station. He was terribly late for work and didn’t have a minute to swipe the card or scan the code to pay for his ticket. Then, Henry reaches the terminal and just places his index finger to purchase the ticket and proceeds to catch the train.<blockquote class="block-node" id="8ek6i7u3q">Sounds like a scene of a sci-fi movie, right? What if I tell you this is happening right now?</blockquote>Well, that is biometric authentication, where an individual’s unique physical traits are captured and stored by electronic devices. The captured information will be used to authenticate the individual’s identity when making a purchase.It is no secret that we often struggle to remember our passwords or PIN numbers. So, we resort to having our birthdays or our name as our password or PIN. Ironically, this also means we leave our sensitive data out in the open.With the global adaptation of <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments-2/">mobile payments</a>, the pressing need for a more secure system, as opposed to the existing authentication systems, is on the rise. Fingerprint scanning, iris recognition, and facial recognition are some of the biometric systems now in place.It does come with a slew of advantages like higher security, improved customer experience, and customer retention. But, on the flip side, the concern of personal information, especially one’s unique traits being out in the open, is a problem. Also, installing biometric systems requires a considerable investment that often retailers shy away from.<h2 class="heading-node" id="5a9a" style="text-align: justify">What does the future hold?</h2>Biometric adoption will be the future of the payment industry. And it is an innovation-driven by institutions and individuals wanting an upgrade from password/PIN input. Right from wearables to injectable chips, the idea of biometric authentication seems to have taken root.The world of payments keeps evolving with many futuristic trends in payment processing every day. <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">Explore more.&nbsp;</a>It looks as if the future is just a step away………. Or rather a scan away.<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.

Explore the future of payment authentication — Biometric

<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.webp" alt="M2P Fintech" title="" width="100%" height="529">India is fast emerging as the leader of consumer <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">fintech</a> adoption at 87% with rapidly changing demographics and consumer behavior. Coupled with the government’s initiatives and regulatory policies, India was the perfect environment for deploying the Visa Everywhere Initiative (VEI).Started in 2015, the Visa Everywhere Initiative is a global program spread over six continents. More than 6000+ start-ups have benefitted and raised around $2.5 Billion in funding. But this is not the first time VISA has been active in the Indian fintech ecosystem.The programs of<ul class="list-node" id="3eh65jn4a"><li>The VISA Developer Program</li><li>VISA Ready Program</li><li>Fintech Fast-Track Program</li></ul>were already launched to cater to the ever-growing needs of the Indian fintech ecosystem.Also, the VEI initiative was explicitly customized to address the challenges of<ul class="list-node" id="htb8zqgg0"><li>Digital issuance</li><li>Onboarding of merchants</li><li>B2B payments value chain transformation</li></ul><h2 class="heading-node" id="0b92" style="text-align: justify">The Indian Connect</h2>VEI started its roadshow in five cities across the country so that Fintechs can get acquainted with it. Right from early-stage to established Fintechs, everyone got themselves registered with the platform. This event was also held at Sambalpur, which was the “India first” idea for VEI, and it brought forth local fintech founders.Loads of engaging conversations about how <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments-2/">digital payments</a> were used to transform business models across countries were discussed. It was when VEI became a platform that inspired Fintech, and #InspireIndianFintechs became the slogan.This program also took on the mentorship stead and brought forth experts across VISA verticals. The experts mentored and offered technological support to the participating fintechs. Soon, the participating fintechs pitched their solutions with proof of concept. All this mentorship and demo was to be followed by a grand finale.<h2 class="heading-node" id="48fb" style="text-align: justify">The Learnings</h2>VEI’s journey through India brought a treasure trove of mutual learning. But, it also put forth the challenge of organizing the right outreach for fintechs and arming them with relevant APIs. VISA overcame this obstacle by giving them access to the VISA developer portal and its <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">APIs</a>. Also, the global expertise of the mentors helped the participants leverage VISA tech and assets.<h2 class="heading-node" id="ecac" style="text-align: justify">The Success</h2>The first edition of VEI turned out to be a huge success, with so many instances increasing the adoption of digital payments. It ignited a revamp of essential services to empowering micro-businesses along with support solutions.<h2 class="heading-node" id="1adf" style="text-align: justify">The Obstacle</h2>The chronicles of VEI in India started in late 2019, but before they could get to the main event, COVID-19 had forced a nationwide lockdown. But it also brought forth solutions to tackle the post-COVID era.<h2 class="heading-node" id="1c91" style="text-align: justify">Fintech’s future</h2>The Fintech ecosystem is all set to drive a radical change on the brink of customer experience and innovation. VEI will be the bridge that will connect legacy institutions and new-age Fintech, boosting financial inclusion. The customer will be the recipient of the best of both worlds. VISA will play a vital part in India’s journey of becoming a digitized economy.<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 VISA Everywhere Initiative — A journey spanning 100 countries

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Discover-the-fintech-trends.webp" alt="M2P Fintech" title="" id="eaotenosx" width="100%" height="356"><a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">Financial Technology, or Fintech</a>, is more than just a buzzword. It drives new business models, many opportunities, and endless possibilities. So far, it has brought forth many innovations and exceptional tech advancements.This year alone, the sector has received about $30 Billion as an investment. <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">Fintech has been creating ripples, and experts believe that below trendsetters will reshape the landscape of Fintech.</a>It might sound futuristic, but they will transform every organization into a fintech.So, let’s look at the five notable trends&nbsp;redefining the financial services and banking:<h2 class="heading-node" id="ecb5">Breathtaking Payment Innovations</h2>Till now, the breakthroughs in payments have always enhanced user experience. Right from physical cards, apps, QR, to contactless cards, innovations happen every single day. Moreover, there is a surge in e-commerce transactions as a result of the pandemic. So, <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments-2/">digital wallets and mobile payment platforms</a> are also seeing an uptick. Invisible, Free, and Fast Tap Payment or Contactless Card will be the most sought-after PayTech in 2020. Read more about the future of digital payments <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">here</a>.<h2 class="heading-node" id="e243"><a class="link" href="https://m2pfintech.com/blog/central-bank-digital-currency-cbdc-101-a-primer/">Blockchain and Data Analytics</a></h2>Blockchain can mitigate credit frauds, phishing, identity thefts, and other hacks. And many salutations to the massive investments in data platforms, tools, and talent. AI, Machine Learning, and Analytics are now becoming mainstream and disrupting the financial sector.Besides, the industry is making great strides with the introduction of these technologies like<ul class="list-node" id="h8yc549ia"><li>Unveiling the know-hows of making financial chains more secure and transparent</li><li>Include advance decision making &amp; hyper-personalization to the existing solutions.</li></ul><h2 class="heading-node" id="7d92">SaaS API and Bundling &amp; Unbundling of services</h2>Fintech SaaS is a bigwig that allows bundling and unbundling of banking services. Platforms can be built with specific offerings and use an extensive collection of <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">robust APIs</a>. Customized solutions could be developed through add-ons. Mix and Match products are possible through quick and seamless Banking API integrations.<h2 class="heading-node" id="7673"><a class="link" href="https://m2pfintech.com/blog/neo-banking-the-rise-of-new-age-banking/">Neobank</a> or Digital-Only Bank</h2>Say goodbye to all the brick-and-mortar banks. Forget physical branches, bank tellers, long queues, or appointments.Imagine a digital bank platform up in the cloud that has all the banking solutions and functionalities into this single platform. Consumers can access services 24*7 via mobile, tablet, web, or other digital channels.This virtual digital-only bank would replace all the physical branches, and the infrastructure cost is nullified. Investments are only for maintenance, scalability, and security of the platform. This concept is called as <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">Neobanking</a>.In simple words, a traditional bank is like a chain of retail outlets, whereas a neobank is like an online retailer.Set up a neobank in just 7 steps. Curious to know how? <a class="link" href="https://m2pfintech.com/blog/7-steps-to-start-a-neo-bank-from-scratch/">Click here.&nbsp;</a><h2 class="heading-node" id="3f91">Conversational or voice interfaces and Chatbots</h2>A chatbot is a much-needed tool for better customer service and a superior banking experience. These financial chatbots resolve user queries swiftly and gather invaluable customer feedback. Also, conversational chatbots are more accurate, save time, store chat scripts for future use, and provide rich insights.They are also helpful in mapping user journeys and creating customer profiles. Further, voice interfaces could provide similar engagement, like bank tellers. They can re-create a virtual bank experience and retain customer emotions.Curious to know how fintech has boomed and what we can expect in 2023. <a class="link" href="https://m2pfintech.com/blog/8-fintech-trends-to-look-out-for-in-2023/">Read here.</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.

Five Notable Fintech Trends of 2020

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-1-2.webp" alt="M2P Fintech" title="" id="2lkz0tdor" width="100%" height="661">Sam was tired of getting promotional emails in his inbox. He kept deleting them every day, but the next day the cycle repeated, and the inbox was full. He had no idea why he kept getting these emails, even though he doesn’t remember subscribing to them. Further, they didn’t stop even after choosing the unsubscribing option. Sounds familiar, doesn’t it?Well, we get these emails whenever we sign-up for a new online service or website. We would come across these familiar messages but never take heed of them as our primary intent would be signing up for their services. Below are some lines that are permanent fixtures when signing up online:<ul class="list-node" id="dj0oeak5a"><li>I would like to receive marketing emails on discounts, promotions, offers, and other information about the product</li><li>Do not like our emailers? Click here to unsubscribe</li><li>We may share your data with our third-party partners to bring you personalized offers</li><li>I agree to receive monthly newsletters, blogs, or the latest stories</li><li>Understand our usage of cookie data and how we partner with analytics service providers and social media</li></ul>Now, if you are wondering why they are a permanent fixture, it’s because they are mandatory by the GDPR guidelines.GDPR is the General Data Protection Regulation that came into practice to protect the individual’s privacy online. In simple terms, it is a list of data privacy rules and guidelines to safeguard customer data.It aims to provide consumers significant control over their data. At the same time, it serves as a valuable framework for organizations when processing customer data like name, address, photos, IP address, genetic or <a class="link" href="https://m2pfintech.com/blog/explore-the-future-of-payment-authentication-biometric/">biometric information</a>.<h2 class="heading-node" id="38ad" style="text-align: justify">The Beginning</h2>The European Union (EU) implemented the General Data Protection Regulation (GDPR) on 25th May 2018. The regulation attempted to limit data exploitation and to gain people’s trust in the digital economy.If a Non-EU area engages in transactions or data exchanges with an EU region, the former needs to follow GDPR. To elaborate, all the Indian companies working in IT, international e-commerce, and outsourcing also fall under GDPR since they deal with data processing. These regulations can even change the ways these companies do business with customers. Organizations should be aware of the GDPR’s laws, including the increased costs of managing and protecting customer information.For a successful implementation of data security measures, organizations must reflect the interest the customer has about his/her data in their sophisticated data collection methods.<h2 class="heading-node" id="5259" style="text-align: justify">When can a company record a customer’s information?</h2><ul class="list-node" id="4uezg67vf"><li>The customer consents to store information for as long as it is necessary</li><li>The customer can access and rectify the information at any given time</li><li>Companies store information on a commonly used format like CSV</li><li>They explain to customers how their data is processed and used, for how long, and by whom</li><li>They can delete customer information when the user thinks it is not necessary</li><li>They inform customers of data breaches within 72 hours of the breach detection</li><li>They notify customers if their data is vulnerable to a data breach</li></ul><h2 class="heading-node" id="af32" style="text-align: justify">Why the need for this regulation?</h2>Imagine knowing that all your personal information can be found with a single click. All your details can be traced, documented, and used for a third party’s gain. For instance, all the information you share online isn’t entirely safe, and the internet still hosts some confidential information.So, GDPR offers organizations a clear pathway of dealing with sensitive customer information while at the same time protecting the customer’s right to privacy.<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.

GDPR in a Nutshell

<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="447">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-2/">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?

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-7-11.webp" alt="M2P Fintech" title="" id="avpoofk1v" width="100%" height="661">Today’s consumers use mobile apps and ecommerce sites for their shopping needs. Right from festive shopping to weekly grocery needs, online is the place to go.In fact, the first online marketplace evolved in the 1990s to buy and sell used goods. And now it has become a necessity, given the current situation. Nevertheless, it paves the way for online fraud as well.Given the right code, anyone can hack and gain access to your card information and relieve you of your funds. So, the question remains: How to make online transactions&nbsp;much safer?Well, fret not! We have got you covered through Virtual Cards.What is a Virtual Card?Virtual cards are <a class="link" href="https://m2pfintech.com/blog/payment-cards-design-made-simple-heres-what-you-need-to-know/">payment cards</a> available only in the digital format. The 16-digit electronic cards come with a custom spending limit and can be instantly issued. They are usually valid for a short period.<blockquote class="block-node" id="qoe6auwbb">The specialty of virtual cards is that your debit or <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit card</a> number or primary account information is not shared with the merchant, thereby shielding you further.</blockquote>In India, virtual cards are limited to eCommerce transactions and can be used only once. However, globally, they are used for online and offline transactions and are available as single-use or multi-use cards.<img src="https://miro.medium.com/max/1400/1*oMH4iJh7mu7R7FfW25U1nw.png" alt="M2P Fintech" title="" width="100%" height="317">Available as a one-time use or as a recurring card<h2 class="heading-node" id="73a2" style="text-align: justify">How do virtual cards work?</h2>In addition to physical cards, banks also issue virtual cards, usually when the customer requests them.A customer who holds a primary account with a bank can apply for any number of virtual cards.To create a virtual card, you need to provide your name, existing debit or credit card number, and card limit. Upon successful OTP verification, you would be shown the cardholder name, virtual card number, expiry date, CVV, and card limit.When you purchase online using the virtual card, PIN and password are sent to your registered email or mobile number. The card will expire as soon as you complete the transaction, and the unused amount will be transferred back to your account.Suppose you haven’t purchased anything within the valid date, the entire amount will be refunded to your account.An extra layer of security and privacy<blockquote class="block-node" id="d0brlx9pn">For every online transaction, a new virtual card number is generated and provided to merchants.</blockquote><img src="https://miro.medium.com/max/1400/1*Kyo4Ll49opChIvJtk7eMRQ.png" alt="M2P Fintech" title="" width="100%" height="317">Even when the fraudsters access the temporary virtual card info, the primary card or the underlying account is not exposed.So, you need not worry about unauthorized charges or a hacker gaining access to your account. Moreover, you can freeze or cancel the virtual card and get your money back.How corporates achieve smarter ops with virtual cards?Melon is a consumer product company that sells trek cycles for adventurers. Meera heads the marketing team, and Krish leads the sales team. It’s no surprise that both the teams use a ton of SaaS subscriptions.It was month-end, and Meera was busy analyzing the marketing budget spends. She suddenly got a call from Rintu, reminding her to reimburse the travel expenses during their H.Q. visit.Another colleague pinged her to pay off the subscription fees. As Meera was quite busy, she shared her card info to them for reimbursement and renewal payment.<img src="https://miro.medium.com/max/1400/1*TeLOCkiZATW4mgqeS6Bq_g.jpeg" alt="M2P Fintech" title="" width="100%" height="317">Offer dynamic spend control and expense categorizationMeanwhile, she noticed that Krish’s teammates were paying their expenses using individual cards. She later learned from Krish that his team has partnered with its bank and a Fintech firm and initiated a virtual card program.<blockquote class="block-node" id="ol4xf6yj5">All team members had their own Digi cards, and Krish controlled the card’s spending limits. From trips to subscriptions, they had cards for each category.</blockquote>Meera thought virtual card as an excellent solution since it gave a 360° understanding of expenses. She discussed it with her team and implemented a new program.What makes virtual cards preferable?These programmable virtual cards offer intact visibility on spending, authorize transactions in real-time, and comes with increased security.Powered by <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">open APIs</a> platforms, they have many defining features that give them an edge over traditional cards.<img src="https://miro.medium.com/max/1400/1*PslqLLEkZHT4K6liBJZo9A.png" alt="M2P Fintech" title="" width="100%" height="317">Virtual card featuresWhat does the future of virtual cards hold?In India, several banks have already collaborated with many fintech partners and have launched many invaluable programs. Globally, virtual cards have also experienced tremendous growth in the past five years and will continue to boom.P.S. For those keen on how virtual cards began, here’s a fun fact —&nbsp;The travel industry was the first to pick up this splendid product. It needed a safe international fund transfer and excellent expense management solution back then.To know more about virtual cards, write to us at business@m2pfintech.com.<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.

All You Need to Know About Virtual Cards

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-10-4.webp" alt="M2P Fintech" title="" id="9psuo4qu8" width="100%" height="284">Around the world, there are billions of people without access to structured and formal lending services. This category also includes those micro, small, and medium enterprises that struggle to stay afloat without timely financing.Fintech has identified these segments to be on the brink of a financial revolution, but there is a tiny hitch. For instance,<a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/"> digital lending</a> institutions need to regroup their position on mastering the tech, utilizing data in identifying potential borrowers. Nevertheless, some lenders have made some headway in adopting alternative data models resulting in a cutback of credit losses and doubled application approvals.Post-COVID Credit Assessment for Unbanked SegmentThe impact of lending and borrowing on small and medium businesses and informal segments like single structures, migrant populations &amp; the unbanked segment is now seen as “Too risky.”This scenario gives rise to crucial problem statements that need to be addressed by various players in the formal financial ecosystem as below –<ul class="list-node" id="1e9xn2w3x"><li>Lack of structured and verifiable financial behavior data for MSMEs, small retailers, and even single entrepreneur set-ups</li><li>Physical <a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/">KYC</a> verification challenges, especially if the borrower's name details, address, or any other criteria are mismatched against available sources</li><li>The financial inability of MSMEs to service and repay existing Loans (in effect) to avail any of the fresh or emergency credit</li><li>The prevalence of manual processes in risks and credit assessment of lenders and banks increases the chances of fraud, errors, omission, loan data exception, and oversight</li><li>Specifically, in the current scenario, as COVID 19 can be classified as an “ACT OF GOD,” this presents a rare loop-hole challenge for existing borrower data to be improperly / insufficiently benchmarked against existing lending product standards</li><li>One of the most ignored segments is the unbanked and under-banked segment (who can be classified as without an active bank account or a transaction presence for a minimum of 6 months)</li></ul>Credit Assessment Opportunities — Ecosystem Participation<ul class="list-node" id="zp19xq2a4"><li>Alternate scoring entities and solution providers need to capture and capitalize individual data through Telecom, Utilities, Taxation &amp; GST, Payments, E-commerce, and Location data</li><li><a class="link" href="https://m2pfintech.com/blog/account-aggregator-101-democratizing-data-access-and-sharing/">Account aggregators</a> will be a qualitative and quantitative complement disruptor for the credit assessment and provide holistic financial behavior data across participating Financial Information Providers (FIPs) and Financial Information Users (FIUs)</li><li>Credit repair entities will have an essential role in ensuring the impacted segments have access and transparent understanding to repair appropriate credit damage due to COVID</li></ul>So far, these pioneering efforts have sparked the unbanked credit assessment. They have brought forth massive opportunities for the sector, and the future looks promising.Want to know more about enabling digital credit? Then 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.

Credit Risk Model for Unbanked: Last-Mile Lending Enablement

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8-19.webp" alt="M2P Fintech" title="" width="100%" height="284">Lending is a complex world where loan origination to disbursal is a sea of procedures. It involves tremendous efforts, time, and logistical investments from the loan seeker. Right from <a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/">KYC</a> verification to document submission, loan application form &amp; user-setup, account mandates, amount sanction, and disbursement, end-use monitoring &amp; EMI/Principal collection, the entire life cycle of the loan is mostly offline.It paves the way for many instances of fraud/mis-governance, data input error, transaction failures, other issues, and loan closure inconsistencies. It also prevents many from seeking credit as they are wary of these cumbersome procedures.<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.webp" alt="M2P Fintech" title="" id="jrpp3783x" width="100%" height="284"><h2 class="heading-node" id="25a0">Short story:</h2>Sunil is an MSME entrepreneur, residing in a semi-urban area called Bandipur. He ran a profitable electronic shop before being railroaded by the pandemic. The business faced a looming loss and a climbing expense due to strict lockdown measures. Since most of the lenders were in the urban or metropolitan cities, he had limited credit options.In fact, from March 2020, Sunil was finding ways to avail credit. He had made endless negotiations with lenders available, expecting a reasonable rate and term. It was a fruitless quest; Sunil had to get a loan from a lender named Roy Chatterjee, at very high interest. He completed all the steps from risk assessment, KYC verification, credit assessment, loan disbursement, and collection offline.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-9-1.webp" alt="M2P Fintech" title="" id="cs0vgyg4f" width="100%" height="284">In the process, Sunil discovered that having minimal or almost no digital facility in the loan application method had given him a suboptimal output. The lending life cycle was complex and filled with data input errors, transaction failures, and loan closure inconsistencies.He also arrived at the conclusions that:<ul class="list-node" id="anlqtu1sw"><li>The absence of data yielded him risky credit allocation and disbursement</li><li>Secondly, the lack of digital infrastructure led to increased inconvenience</li></ul>Owing to a lack of repayment data, the lender misleadingly showed several months of missed collection and charged more than the actual amount. So, Sunil ultimately had to shut down his business and sell his assets for loan closure.<blockquote class="block-node" id="cdewdrpee">What would have saved Sunil’s business?The availability of competitive&nbsp;Digital Credit or Lending Solutions&nbsp;from various lenders could have given Sunil the right credit options.Sunil’s dilemma is an example of the current MSME situation in India. The MSMEs are referred to as the&nbsp;Lost Middle&nbsp;as their needs are not addressed. Their distinct requirements fall between microcredit organizations like Micro-Finance Institutions (MFINs) and banks, thereby making them prey to secondary lending agencies who charge exorbitant interest rates and sometimes deceive. And that’s where platforms like OCEN comes in as a helping hand.</blockquote><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-10-1.webp" alt="M2P Fintech" title="" id="p47fcaqn0" width="100%" height="284">OCEN stands for Open Credit Enablement Network. It aims to promote transparent loan origination and participation from categories of Education, e-commerce, Payment Aggregators, Fintechs, and NBFCs. This platform is designed to serve even niche customers or borrowers like Sunil.<h2 class="heading-node" id="6eff">OCEN- A premise</h2>Fundamentally, OCEN is the brainchild of iSpirt, Sahamati, and Credall. It is a digital lending solution that provides credit to customers having a credit history and provides micro-credit opportunities to people with no credit or bank transaction history. In short, the platform aims to improve and enable credit access to everyone.<h2 class="heading-node" id="58af">So, what does OCEN do?</h2>Generally, it targets to serve all possible borrower categories like personal, home loan, and business. Furthermore, it offers a marketplace model for loan offerings.OCEN aims to resolve the major problems by emphasizing Digital-Only assessment, sanction, and disbursement of loans to borrowers. It supports borrower and lender usage monitoring, thereby ensuring a 360° data collection and analysis.Digital lending can prevent mis-governance or fraudulent loan practices by both the parties — loan seeker and loan provider.<h2 class="heading-node" id="c81c">OCEN — The Ultimate Platform for MSMEs</h2>OCEN is best suitable for MSMEs because its open protocols will ignite further innovation at each step of the loan process. Furthermore, it will help to democratize credit.&nbsp;It can even ensure that every service provider offers credit by just plugging into the platform.<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.webp" alt="M2P Fintech" title="" id="97zo19bd8" width="100%" height="284"><h2 class="heading-node" id="2ff3">Will OCEN solves the struggle of MSMEs?</h2>Yes. It can rapidly increase credit availability to enterprises that are already digitized to a greater extent. For other MSMEs that operate in a minimum data zone or with a low digital base, lenders need to utilize the physical and digital infrastructure and channels. Simply put, overcoming data errors or discrepancies for companies with a minimum digital capability is still an issue to be addressed.<h2 class="heading-node" id="6ff8">The Future Journey of OCEN</h2>OCEN is expecting to terra-form the credit landscape in the coming months and years ahead. It will allow small businesses to avail credit in real-time. Whether its supply chain finance for broad/long term or instant-short term credit or any other trade-specific condition, you could anticipate a sea-change transformation in the more extensive credit process.The next visible step in OCEN — is the significance and authorization of Loan Service Providers (LSP) categories. Finally, the rationale behind the digitalization of lending and the Open Credit Enablement Network is to make “Credit for Everyone”&nbsp;a reality.<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.Author- <a class="link au nn" href="https://medium.com/@abhishek.mody" rel="noopener">Abhishek Mody</a>

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