Sep 22, 2020 ●10 min read
Fintech In India: How Far We Have Come
Banking and financial services are the backbones of any economy. Merging it with technology led to the genesis of Fintech with the aim of making an intuitive, seamless, and user-friendly experience within the BFSI space. FinTech is amongst the most thriving sectors at the present in terms of both business growth and employment generation. Having emerged because the world’s second-largest fin-tech hub- India, too, is experiencing this ‘FinTech Boom’.
Over the previous couple of years, Fintech has led to a paradigm shift in how we pay, how we borrow, how we invest, and the way we insure. With the bedrock of advanced technologies like AI and blockchain, Fintech has emerged jointly as the key driver of India's digital growth story. It's changing the financial demographics of India by bringing banking & financial services to each and every home. Because it grows at an electrical pace, it promises to remodel the lives of people by serving the underserved also as underprivileged and bringing them into the mainstream economy. The previous couple of decades saw the change of cash from cash to plastic. Going forward, Fintech is recasting plastic to mobile, and wallets to digital wallets, and much more. No doubt digital payments have made our lives much easier through information and cashless transactions, another leap is the case of digital lending that has made it possible to finance credit seekers within hours, who otherwise, couldn't find loan options. Similarly, Insurtech is transforming the insurance domain by offering digital policies over IoT, while neo-banks have taken banks to places where traditional banks don't have any reach.
FinTech in India, although at an emerging stage, is progressively turning into an important part of everyday transactions. From a broader perspective, it's serving as an important catalyst for financial inclusion within the country by creating profitable opportunities for the poor and unbanked. The shift from traditional to digital payments has verified to be rewarding for both people and businesses, also because the self-employed, rural entrepreneurs, little borrowers, and SMEs and MSMEs. in a country that has the world’s second-largest unbanked population, FinTech possesses to play a critical role in breaking barriers like lack of economic awareness, high-cost of traditional banking services and policy-gaps that a forestall an oversized proportion of Indians to be a region of the formal financial landscape.
Given that client banking is on the verge of disruption, there needs to be a larger emphasis on the customer. whereas traditional banks yet to embrace a customer-centric model, FinTech players have recognized the dire want for enhanced customer-orientation. By providing customized, targeted products and services, they are not simply acknowledging, however additionally catering to the evolving consumer demands.
The FinTech business in India has grown up and grown out. At 87%, the country has emerged because of the leader in FinTech adoption, as per findings from the worldwide FinTech Adoption Index 2019 by EY. Once solely made up of startups, this sector is currently welcoming established corporations and public and private sector banks. Awareness of economic technology has additionally increased, with 99.5% of customers now conversant in the fact that FinTech platforms are accessible to form payments and transfer money. This suggests a positive shift and presents immense growth potential for the industry as an entire. Meanwhile, we tend to expect FinTech to form continuous innovations in terms of products, services, and delivery.
FinTech start-up, offers convenience, tailored experience, transparency, accessibility, and ease of access – factors that empower customers to a fabulous extent. In contrast to traditional banking, FinTech is taking a segment-of-one approach to present narrowly defined, nevertheless extremely effective solutions.