The state of fintech in India
Traditionally, innovations in Financial Services have had been held back by conversation approach on the part of the government and regulatory uncertainties on related matters. In the old-world order, we have also seen the incumbent financial institutions having a lesser appetite for disruptive innovation and preference to steady improvements.
However, the story has been different in the last one year, there has been a paradigm shift in these perspectives. Improved data analytics and mobile connectivity offer incumbents a chance to create stronger, more profitable propositions for customers and positively impact their own top and bottom line growth. Financial Institutions have become more open to exploring new ways of engaging with startups, beyond the typical acquisition or replication strategies. User adoption is another challenge which typically slows down innovation, and changing underlying user behavior requires dedicated marketing and consumer education efforts.
Governmental efforts towards promoting digitization of financial systems and reducing cash transactions in the economy have been quite effective in shifting consumer focus towards digital alternatives for financial transactions, with the payments sector has benefited the most.