In recent years, FinTech has attained unprecedented growth in India, ranked the third-largest globally, and valued at a whopping $31 billion. Given the aggressive reliance on technologies these days, the value of FinTech is sure to redefine several market benchmarks.
In my previous article I already shared the figures that represent India’s FinTech growth story and the reasons for creating GIFT city – the dedicated FinTech hub. Keeping in view FinTech’s prominence globally and matching the same with local acceptance, here’s a snapshot of how extensively it has evolved and continues to transform Indian businesses and finance ecosystem in particular.
The largest credit or so to say cause the cause of the growth of FinTech is Digital Innovation. Undoubtedly, it all started with mobile – Smartphone. The communication device turned to support on the move – entertainment, utility and banking services. Then mobile money came into existence followed by shopping and payments via mobile. Digital innovation ensured FinTech does not stagnate and progress is not stemmed. There is always the search for the next best thing. Today’s technological market is such that every step taken towards advancement aims to provide grander benefits and convenience to consumers. This factor has greatly enabled the evolution of FinTech. Services like mobile money would allow consumers to control their finances using their smart phone. The peer-to-peer (P2P) or marketplace lending allows several prospective entrepreneurs to engage with investors. Robo Advice provides greater precision and accuracy when providing financial services. Not to mention, Insuretech (insurance technology) & Crypto-Asset have significantly redefined what is possible with FinTech. FinTech has been of significant benefit in India’s budding Electric Vehicle sector. Fintech companies have been primarily responsible for providing credit supply solutions to interested buyers, digital payment solutions for drivers and have even offered an incredible ecosystem where insurance providers, battery manufacturers, and other key players of the electric vehicle domain can connect seamlessly. They have stepped up in a sector that conventional financiers ideally avoid. The influence of technology has not limited these services to India, but is being extensively accepted and implemented throughout more significant parts of the world. There is no limit to the influence of digital innovation in FinTech, and there is no definitive mark of the advantages this provides consumers and businesses alike.
On the tech side, it is the implementation of new age technologies like artificial intelligence, cloud computing, machine learning, distributed ledger technology, IoT has expanded the impact of FinTech from just retail to encompass even the wholesale markets. These technologies enable FinTech in a manner where businesses can serve their consumers in a more optimised way. Not only has it benefited corporations and consumers; it has greatly aided in the development of Regulatory Technologies (RegTech) and Supervisory Technologies (SupTech) in ensuring compliance. Identity management & control, risk management, and regulatory reporting are now accomplished with perfection. These technologies have also greatly aided in transaction monitoring and trading financial securities advancements. While new tech ensures the evolution of FinTech, it also equally ensures that RegTech and SupTech also equally evolved, which assures safety and fairness regardless of the advancement.
The increasing acceptance and usage of digital payments in India is also encouraging FinTech’s evolution. Plus the customer satisfaction for doing multiple activities and ease of transaction as one-stop-solution, is also paving way for newer digital consumers. Many banks have significantly invested in creating APIs that go beyond enabling mobile money. Banks, financial services, and FinTech companies aim to provide their consumers with a complete one-stop-shop solution. These include banking, finance management, trading, lending, insurance, P2P transfers, cybersecurity, cryptocurrency, and even payroll services, all at the forefront and in one centralised platform. Backed with a great user experience design, this type of one-stop-shop financial solution is guaranteed to cause customers greater satisfaction. That is one of the primary reasons FinTech has impacted every kind of business model, as all businesses aim to provide customer satisfaction.
FinTech is simply the next natural progressive step for the businesses & citizens of India.