Banking, Financial Services & Insurance (BFSI)

Banking, Financial Services & Insurance (BFSI) is an industry term for companies that provide a range of such financial products or services. This includes universal banks that provide a range of financial services or companies that operate in one or more of these financial sectors. BFSI comprises commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds & other smaller financial entities.

The Banking part of BFSI may include core banking, retail, private, corporate, investment & cards. Financial services may include stock-broking, payment gateways, mutual funds. Insurance covers both life insurance & general insurance.

This term is commonly used by information technology (IT), information technology enabled services (ITES), business process outsourcing (BPO) companies & technical/professional services firms that manage data processing, application testing & software development activities in this domain

Following trends are visible in BFSI

• Digitization & Digitalization
• Online Mobile Banking
• Unified Payment Interface (UPI)
• BlockChain
• Digital-Only Banks

Financial technology (Fintech) is used to describe new tech that seeks to improve & automate the delivery & use of financial servicesSome of the most active areas of fintech innovations

• Cryptocurrency & digital cash.
• Blockchain technology, including Ethereum, a distributed ledger technology (DLT)
• Smart contracts, which utilize computer programs (often utilizing the blockchain)
  
• Open banking
• Insurtech,
• Regtech,
• Robo-advisors, such as Betterment
• Unbanked/underbanked, services
• Cybersecurity, cybercrime & the decentralized storage of data