Financial
Services Review
Asia 2020

Insights and best practices to help capture India and China’s fintech market

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Intro
29fintech services

All applications for individuals that objectively represent the financial life of India and China: mobile banks, e-wallets, credit, investment and insurance services

113best practices

Only breakthrough and non-standard solutions to key user tasks in digital service

Banks, fintechs and non-bank financial institutions in Asia, more than anyone else, know how to gain the client’s trust and loyalty in a highly competitive environment. We collected the best they could come up with, and we want to speed up the distribution of these solutions in the global fintech market.

If you plan to bring digital financial services to the market in India and China, the results of the research will be useful in assessing the impact of legislative and infrastructural features, assessing the competitive field, providing guidance and insights for development. For this purpose we have compiled fintech markets detailed maps and have thoroughly studied the features of the services that play a significant role on them.

If the service already exists on the market, the source of the insights for its development will be a collection of 130 best practices, each of which we’ve described in terms of impact on business and client experience. The solution navigator is a map on which all best practices are structured according to 15 user tasks.

best practices map
best practices highlights
E-wallets have captured the market of transfers and payments by convinience

The main instrument for payments and transfers in India and China is e-wallets. It is here that the client has the maximum possibilities for personal financial management and can solve his problems quickly and conveniently. In India, for example, to link a card to a Google Pay service, one does not need to know its details. It is enough to find the bank in the list, select it and confirm the binding by the phone number. For convenience, the most popular banks are at the top of the list. For final authorization, the service requests access to the user's phone, sends an SMS from it, and thus confirms the card is added by its owner.

1/22 best practices in Indian e‑wallets
E-wallets solve the maximum of clients’ tasks on personal finance management

A striking example of a financial ecosystem is the Alipay application, where one can not only quickly and conveniently make transfers and payments, but also open saving account, get an overdraft, microcredit, goods installments and even insurance. Through creative and emotional communication, the service motivates the client to start saving money: opening a saving account is compared to a star in the sky, which lights up after a contribution of a certain amount. The service represents the saving as something very desirable: accumulating money, the user sort of reaches the star and makes his dream come true.

1/25 best practices in Chinese e‑wallets
Banks compete for customers, improving the convenience of daily operations

Most services don’t offer convenient and fast ways to enter the applications for owners of old smartphones where there is no fingerprint scanner or face ID. The Agricultural Bank of China mobile app uses its own facial recognition system through a front-end camera.To enter the application, the user simply uses a front-end camera that recognizes the face from biometric data that can be recorded in the office or directly through the application. This is the convenient alternative to pin-codes and hardware identification solutions: the user has more options to enter the application.

1/48 best practices in Chinese banks
Asian banks know how to lower the entry threshold for customers

When registration requires a lot of data, the client may not understand which document is required and what to scan in it. The State Bank of India application offers the tips that not only help the user find the desired part of document faster but also increase the conversion. When the process is organized as easily as possible, the client will probably not interrupt the process or leave the application. All scanned data is automatically entered into the questionnaire: this considerably shortens and simplifies the task.

1/10 best practices in Indian banks
Credit, investment and insurance companies are just beginning to develop digital services

So far the best customer experience in these directions is given by e-wallets and banks, but specialized services are also developing and can be the source of best practices. For example, the MyWay investment service helps the client to choose a product suitable to him, taking into account various factors. The application asks questions about the purpose and experience of the investment, the savings availability and the attitude to risk and, as a result, gives an estimate. It offers the user specific Mutual Funds, which can be bought once or customized periodically.

1/8 best practices in other financial services
Market maps insights
Maps help to form a general idea of how the India and China’s fintech markets work. We have reflected on them the most popular digital services for personal financial management, except for information ones.
India’s market map

The most important players are e-wallets and payment services within large ecosystems (Amazon and MyJio), which are often used for payments and personal transfers. Bank applications are underdeveloped and unpopular. Credit services are mainly provided by microcredit organizations, which share a niche with wallets and credit card aggregators. The smallest block of the market is investment services: it is occupied by services for trading on the exchange and for investments in mutual funds. Together, they serve no more than 30 million people.

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China’s market map

Banks in China are more developed than in India: they are prominent on the map but still lag behind wallets and payment services of digital ecosystems. Credit services consist of MFIs and P2P credit services, with credit card aggregators taking a significant share. Investment services are divided into applications for exchange trading and for wealth management products, which are sold not only by special services but also by banks. The insurance market consist of two players, none of which allows for the possibility of obtaining insurance online – this allows technology banks and the Alipay application to take the part of the market for themselves.

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Methodology
Market research

With the help of our colleagues in the banking and UX communities of India and China, we have learned about the infrastructure and legislative features that affect each country’s financial services. In addition, they have helped us to understand the behaviors of citizens: how they receive their salaries, how they pay taxes, how they transfer money and buy online, what services they use to manage their finances, how popular different financial products are.

Application analysis

With the help of UX specialists we have obtained real access to most digital services and independently passed all user scripts that are accessible to the owner of a debit card or an e-wallet. If not, we asked colleagues from India and China to take part in the survey: describe the principles of the application and record video of all operations. Additional sources of information included call centres and bank chats, official sites, application description and demo-versions.

Selection of best practices

We figured out which solutions are typical of the market and which are unique. We used our own expertise and knowledge of the market to objectively evaluate each solution from client's and business' perspective: how useful it is to implement it and how it will affect the user experience. We studied and described exactly how the best implementations work, how unique they are, what extra value they create to the client and how they solve problems when dealing with typical implementations on the market.

Full report contents
PDF file

The Report includes all data obtained by us and summary of these data analyses:

  • best practices guide;
  • 113 best practices with detailed descriptions;
  • descriptions of specific features of financial life in the countries studied and their effect on financial services;
  • descriptions and illustrations of user’s scenarios.
Video-case base

800+ video-cases, demonstrating user-stories for all major unique scenarios:

  • 15+ videos per bank;
  • more than 17-hours duration and more than 10 GB in total.
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