[Exclusive Interview] This Analytics Software Company Uses Big Data To Access Borrower's Financial Health

Recently, we interacted with Mr. Shashank Sharma, Director, ScoreMe Solutions – an innovative analytics software company in the Fintech space. Here are the interview highlights:

1. What are some of the key trends you see emerging in the Fintech industry, and how do you think they will impact the future of finance?

The Indian FinTech market is poised for significant growth in 2023, driven by the implementation of 5G and the emergence of AI, machine learning, Web 3.0, and the Metaverse. The industry is expected to generate US$1 trillion in throughput and US$200 billion in revenue by 2030, with digital-only neo-banking platforms, InsurTech, digital lending, and alternative investment platforms leading the way. The adoption of fintech solutions is increasing among consumers, and 2023 is expected to see further advancements in embedded finance, SaaS services, Regtech, and open banking. Overall, this presents a lucrative opportunity for businesses to capitalise on the growing demand for fintech solutions and services in the Indian market.

2. What do you think sets your company apart from other fintech companies in the industry?

I believe that what sets us apart from other fintech companies is our relentless focus on innovation and customer experience. We are constantly pushing the boundaries of what’s possible. We have prioritised experimentation and rapid prototyping to test and refine our ideas. We pour an outsized sum into research and development and exploring new market opportunities, which has helped us ensure seamless and secure experiences, providing our customers with the peace of mind they deserve.

3. How do you balance innovation and risk management in your work?

We view risk management not as a hindrance to innovation, but as a critical enabler of it. We have a strong risk management culture that is embedded throughout our organisation. We encourage all employees to be vigilant about risk, and we provide them with the tools and training they need to identify and mitigate risks at every stage of the product development lifecycle.

In terms of processes, we have implemented a rigorous risk management framework that covers all aspects of our business, from product development to customer service. We are exploring the potential of emerging technologies such as blockchain and distributed ledger technology to streamline our processes and enhance security.

4. What are some of the most significant challenges facing the Fintech industry today, and how do you think they can be addressed?

Fintechs are experiencing significant challenges in terms of regulatory scrutiny, market saturation, cybersecurity risks, user retention, and service personalization. These challenges require a range of solutions including innovation to differentiate themselves from traditional financial institutions, prioritisation of cybersecurity measures and improvement of user experience. Staying current with technological advancements without succumbing to the latest fad is something all fintechs need to contend with.

Fintech in India must scale up investments in compliance technologies to ensure they comply with all regulations, and maintain transparency with their customers. We need to give higher importance to cybersecurity measures, in terms of secure software development practices, regular security testing, and employee education on cybersecurity best practices.

5. How do you balance the need for short-term results and long-term growth and sustainability within your company, and what strategies do you use to achieve this balance?

In an industry that moves quickly, one must not only stay ahead of the curve but also anticipate the twists and turns of market changes. Failing to do so can result in losing touch with consumers and falling behind competitors.

To achieve this balance, we have adopted a data-first approach and prioritised investments in technology and innovation to drive long-term growth. This has lent us the ability to pivot quickly to market changes and meet the ever-evolving needs of our customers. Your capacity to offer services during a disruptive phase can impact your short-term cash flow, while your long-term success hinges on your ability to adjust to changes that will persist even after the upheaval subsides.

Fintechs must embrace cloud computing and the Metaverse to drive long-term growth and sustainability. Cloud is an absolute imperative — for agility and scalability one needs to rapidly scale operations. Metaverse, likewise, can provide new avenues for customer engagement and revenue growth.