Where does Fintech in India go from here…
According to EY’s 2017 Fintech Adoption Index, 1/3rd of consumers utilize at least two or more fintech services and those consumers are also increasingly aware of fintech as a part of their daily lives. While North America is still known to produce the most number of fintech start-ups, Asia is relatively close at the 2nd position, followed by Europe.
Speaking of fintech companies in India, there are currently 29 top companies that occupy a chunk of this sector. India has the second-largest base of internet users, which explains the shaping fintech industry in India. Before we observe the core trends shaping fintech companies in India, let us understand the meaning of Financial Technology (Fintech).
What Is Financial Technology (Fintech)?
Investopedia defines fintech or financial technology as a new tech that seeks to improve and automate the delivery and use of financial services. Fintech company is used for helping business owners, consumers, companies, and banks in managing financial operations and processes using specialized algorithms and software.
Fintech includes (but is not limited to) sectors and industries including retail, education, banking, non-profit, realty, investment management, and fundraising.
Growth of Fintech in India
Financial inclusion and inclusive services are the key driving factor for increasing penetration of fintech companies in India. Other factors also include increased customer expectations, mainly since next-gen and Gen-X use smartphones 24*7.
Efficient and sleek offerings from fintech across different value chains is another reason why fintech popularity has increased in India. Based on these grounds, fintech companies in India are shaping on top 10 core trends or themes which are listed below.
10 Trends Shaping FinTech in India
1. Ability to create comprehensive financial services Super App
2. BNPL or Buy Now Pay Later, which gives access to digital credit
3. Rising Insurance products through InsurTech
4. Neo banking
5. Wealth tech for investment portfolio management
6. API banking development
7. MSME becoming the new battleground for fintech
8. The rising popularity of digital lending, which is the most funded business model in the fintech sector
9. Digital payment where new entrants and established fintech players find new ways of payment as bait to generate revenue from cross-selling
10. Bitcoin and digital tokens capturing the interest of people
These themes are explained in detail with deep analysis in this section.
India’s unique fintech journey has a long way to go. With the strategic adoption of fintech in India, the digital divide can be bridged among the socio-economic strata of the country’s fabric.
