How Fintech Services Made Banking and Finances More Secure and Easy to Access?

The Fintech company partnered with a bank to earn a profit but faced more obstacles and a downfall. The company suffered a major loss of 2100 crore. Fintech companies used various strategies to build up profit but failed in the process. The company authorities turned to Research Nester seeking its services for developing strategies for profit and sustainability.

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An overview:

1

Due to the companies providing the same services and more features, the company suffered a loss and its investor had to submit a tax of 8,000 crore to the govt. for its shift from Singapore to India.

2

Company spent more on advertisement and promotion to expand its capital which worsened the loss.

3

Network errors during money transfers challenged the trust of customers and thus became another setback for the company.

4

Sharing account details to the application led to cybercrimes as many accounts were hacked during the pandemic.

5

Although the company did everything under its realm and outside, to prevent the extent of the damage, still there were serious repercussions that dented its market position.

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The Story

The company provided digital banking and financial services which earned a profit of USD 5 Billion by the end of 2021 and the application was downloaded by 3 crore users in the first month of establishment. The company makes money through user data and promoting banking through ads and the bank pays them for the same. But the more the company grows, the more beneficial it becomes for the bank, for the betterment of customer service as half of the population uses these fintech services for transferring money which only reduces the load of banks and helps the company to earn from that transaction. Due to the limit per transaction, the company suffers loss as not a huge sum of money could be transferred from these services. Rules and regulations of authorities are other drawbacks for the company. The company made great success in the beginning but competitors made advance services that affected the company with the loss of 12oo crore over the revenue of 700 crore in between the year 2016-2019. The company approached Research Nester for better strategies and advanced methods to drop off the competitors in the field. In addition, RNPL consultants also devised a framework of network security measures to facilitate strong connections for digital banking.

Our Solution:

The major pitfall point of the company’s digital banking infrastructure was that it had not been updated and lacked patching a few vulnerabilities. Hence, it became an easy target for third-party to access its sensitive data. Research Nester consultants suggested revamping the company’s security infrastructure practices in the following ways-

  • Implementing multi-factor authentication.
  • Improving data retention practices and implementing strict access controls to safeguard people’s information.
  • Conducting regular security audits.
  • Expanding limit of the transaction to gain more profit from user base data.
  • Strategizing a shift that facilitated the discovery of data breaches internally and at the earliest.

In addition, RNPL analysts also suggested the company could engage in partnerships with or employ renowned cybersecurity firms to conduct independent cybersecurity audits. This way the company could obtain certifications and demonstrate its commitment to data security. This would help the company to win the loyalty of its customers back.

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Results

The digital services platform had a strong market position as of Dec 2019. The profits in the same year were valued at ~USD 5 billion. The company had incurred a loss amounting to ~USD 7 billion that included the fine, loss of existing customers, and tax to the government because of the displacement by the end of December 2020. Apart from the financial drain, the company had also damaged its reputation and reliability. The company generated 99% of the PIN and partnered with other merchandise shopping sites to encounter more profit but loss became a result nearly of double the amount of revenue. At this point, Research Nester was asked to use its experience and expertise in the field to bring the company back on track. By incorporating the strategizes as advised by Research Nester consultants, there was a gradual improvement in customer acquisition of fintech technology. Since the company showed ingenuity in its efforts to prioritize its data management and network security, its clients became ready to give it a second chance. By the end of 2022, the company’s profits had reached ~USD 19 billion, and with a market share of 43%. In the first quarter of 2023, the company is dominating the market with 50% of the shares.

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Swara Keni

Head- Global Business Development

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