Fintechs Drive Innovation with Focused, Agile Approach: Sunil Rongala, Worldline India

In the rapidly evolving landscape of finance, fintech innovations have become the driving force behind transformative changes. To gain valuable insights into this fintech-driven transformation, we had the privilege of sitting down with Sunil Rongala, Senior Vice President, Strategy, Innovation, and Analytics, Worldline India. Sunil’s extensive experience and his current position at Worldline, offer a unique perspective on how fintech is revolutionizing the industry. In this exclusive interview, we delve into the role of fintech in BFSI, its impact on customer experiences, and the future trajectory of the sector

How do you perceive the role of fintech innovations, especially in the last couple of years, in reshaping the BFSI sector for the future?

Sunil Rongala: The fintech landscape, in general, is exceptionally beneficial for the financial ecosystem as a whole. To facilitate growth, the financial sector must be technology-driven. Many fintech, including my own experience with a fintech startup, are small, nimble, and highly agile in responding to market dynamics. Large companies, while not slow, have more commitments. Smaller fintechs, whether startups or a few years old, often with a workforce of around 50, excel in two main aspects. Firstly, their focus on one or two products fosters innovation and in-depth research. Secondly, their agility enables rapid responses to changing market conditions. These qualities make fintechs key players in driving innovation and technology adoption within the financial sector.

Large fintech companies often acquire smaller ones due to the valuable technology they develop. This technology may enhance operational excellence, boost revenues, or introduce groundbreaking solutions to the market. Governments also recognize the importance of fostering fintech ecosystems, as seen in initiatives such as fintech startup accelerators and other forms of support. In essence, fintech plays a crucial role in advancing financial ecosystems worldwide.

 How are fintechs revolutionizing the BFSI sector, particularly in payments, and can you provide specific examples?

Sunil: From a payments perspective, fintech has undergone a remarkable transformation. When I entered the digital payment space in 2009, it was relatively straightforward. However, in just 14 years, the landscape has completely evolved. UPI, for instance, has been a game-changer in payments. Fintechs played a significant role in this transformation, particularly in areas like issuance and credit.

These companies introduced innovative solutions like prepaid cards and efficient KYC processes that enabled users to obtain virtual cards in minutes. Additionally, the introduction of Buy Now, Pay Later (BNPL) solutions and streamlined onboarding for merchants have further redefined the payments sector. Fintechs have contributed across the board, not only in payments but also in investment solutions and mobile banking. Their focus on specific products and services, coupled with relentless innovation, has reshaped the industry.

How does Worldline differentiate itself in the digital payments landscape, and can you highlight specific features or innovations that set your platform apart?

Sunil: Worldline, as a global organization with a presence in various countries, operates with a strong focus on providing value to merchants, both online and in-store. We have established collaborative hubs like the Discovery Hub, where teams from different locations work together to develop solutions that go beyond traditional payment gateways or POS terminals.

Our primary objective is to deliver a delightful experience to merchants by offering a wide range of value-added services. These include reconciliation services to help merchants understand their transactions and settlements better. We are continually working on enhancing the merchant’s experience, not only in terms of payment solutions but also by adding value that can increase their revenue.

Moreover, through initiatives like Worldline Labs, we explore cutting-edge technologies, such as payments through IoT devices like vehicles, fridges, and home speakers. Our research and development efforts are geared towards shaping the future of payments.

 In what ways are fintech solutions enhancing customer experiences and personalizing financial services in unprecedented ways, and can you provide examples?

Sunil: Fintech solutions have redefined customer interactions and personalization in financial services. They excel in removing pain points and friction from traditional processes, ultimately making financial services more efficient and user-friendly.

For example, investment fintechs like Robinhood have democratized stock market investing by simplifying the user experience and making it more accessible. They have made it easier for investors to buy and sell stocks, which has revolutionized the investment landscape.

Furthermore, fintechs have excelled in providing instant solutions, such as quick KYC processes and account openings, which used to take much longer. They have streamlined the onboarding of merchants and offered a wide range of value-added services, enhancing the overall user experience. These fintech-driven changes have ushered in a new era of immediacy and efficiency in the financial sector.

Amit: Have fintech solutions led to cost reductions in financial transactions, and can you share examples of how operational efficiencies have been achieved?

Sunil: Fintech solutions have indeed led to cost reductions in financial transactions, primarily due to increased operational efficiencies. While cost reduction doesn’t necessarily equate to layoffs, fintechs have focused on streamlining processes and saving time, which, in turn, reduces operational costs.

Robotic Process Automation (RPA) is a prime example. It aims to automate time-consuming processes, drastically reducing the time required for tasks. This efficiency ensures quicker results and reduces the likelihood of human errors.

KYC processes have also seen significant improvements through fintech solutions. Automation through APIs allows for quicker verification, reducing the cost and time associated with manual document checks.

Furthermore, fintechs are providing unsecured loans to merchants within minutes, thanks to algorithms that assess risk quickly. These innovations contribute to cost savings and efficiency improvements across various financial processes.

 How do you envision the impact of blockchain technology on security, transparency, and efficiency in financial tech transactions, and can you provide real-world examples?

Sunil: Blockchain technology holds tremendous promise in the BFSI sector. While initially associated with cryptocurrencies like Bitcoin and Ethereum, its potential extends far beyond.

For instance, some states in India have started using blockchain for land registry, leveraging its immutable nature and enhanced security. This ensures that land records cannot be tampered with, enhancing transparency and reducing fraud.

Central Bank Digital Currencies (CBDCs) are another significant application of blockchain technology. The Reserve Bank of India’s introduction of e-RUPI on the blockchain underscores the security and reliability offered by blockchain in financial transactions.

Blockchain has the potential to revolutionize record-keeping, providing a secure and transparent platform for various financial processes. As CBDCs gain traction globally, blockchain’s role in ensuring secure digital transactions will become increasingly apparent.

 How are AI-based solutions, such as generative AI, improving customer interactions, financial decision-making, and transaction efficiency, and can you provide examples?

Sunil: AI-based solutions, including generative AI, are making notable contributions to financial services. While generative AI, like Chat GPT, isn’t directly optimizing financial transactions, it plays a crucial role in improving customer interactions.

For example, chatbots powered by generative AI are becoming more intelligent, providing rapid and efficient problem-solving. These AI-driven chatbots offer seamless user experiences when addressing customer inquiries or resolving issues.

Generative AI also excels in generating content quickly and cohesively. It has applications in education, where it can create exam questions, answers, and explanations rapidly. Similarly, generative AI can assist in content creation for various purposes, offering valuable support in decision-making processes.

While these applications may seem gimmicky today, they hint at the profound potential of generative AI in reshaping customer interactions, decision-making, and transaction efficiency in the near future.

 How do you anticipate decentralized finance (DeFi) impacting traditional financial services, and what challenges and opportunities lie ahead?

Sunil: Decentralized finance (DeFi) presents both opportunities and challenges for traditional financial services. While DeFi initially aimed to disrupt and decentralize financial systems, it has encountered hurdles.

The challenges primarily stem from the speculative nature of cryptocurrencies like Bitcoin, which have shifted focus away from DeFi’s original goals. Many cryptocurrencies have become speculative assets rather than functional currencies.

However, DeFi remains an exciting area of innovation. The idea of peer-to-peer lending and borrowing, smart contracts, and decentralized exchanges has the potential to reshape traditional finance. It could make financial services more accessible to the unbanked and underbanked populations worldwide.

The introduction of Central Bank Digital Currencies (CBDCs) on blockchain technology is another notable development. These digital currencies could bridge the gap between traditional finance and blockchain technology, potentially transforming the financial landscape.

In conclusion, while DeFi faces challenges in its current form, its underlying principles could lead to significant changes in the financial sector when combined with emerging technologies.

 Finally, how do you foresee the future trajectory of the BFSI sector considering ongoing technology-driven changes, and what should industry stakeholders prepare for?

Sunil: The future of the BFSI sector is incredibly promising, driven by ongoing technology-driven changes. Governments and regulators worldwide are increasingly supportive of technology adoption in finance, which is a strong signal of the sector’s future direction.

The industry is shifting its focus from mere survival and compliance towards profitability and improved user experiences. As a result, innovation and customer-centricity are at the forefront.

Digital payments, investments, and other financial services are growing rapidly. The ease of use, combined with network effects, is propelling this change. Consequently, the sector is becoming more vibrant, accessible, and customer-centric.

To thrive in this evolving landscape, industry stakeholders must embrace technological advancements, prioritize cybersecurity, and continuously innovate. Collaboration between traditional financial institutions and fintech startups will be key to navigating this transformative journey successfully. As a collective effort, the BFSI sector can harness technology to create a more inclusive, efficient, and secure financial future for all.