FinTech in India -Ready for breakout
<b>Role of Fin-Tech in empowering financial institutions</b> <span style="font-weight: 400;">FinTech is one of the fastest emerging areas in banking and financial services. It is making the experience of banking and finance more intuitive, personalized and empowering. The convergence of financial
Published -
Jun 14, 2021 4:07 AM
Role of Fin-Tech in empowering financial institutions FinTech is one of the fastest emerging areas in banking and financial services. It is making the experience of banking and finance more intuitive, personalized and empowering. The convergence of financial services and exponential technologies will be key to build a strong digital economy, and lead India’s transformation. Armed with new data and analytics capabilities, asset light platform and almost zero processing costs, FinTechs are complementing and in some cases challenging the traditional banking and financial services institutions globally. The core segments of Indian Fintech sector The breakout potential of India’s Fintech sector are across six segments - Payments, Credit, Investment Management, Personal Finance Management, BankTech and InsurTech and across twenty subsegments. Expectedly payments and lending are the likely candidates for breakout in the short term as the new FinTechs target the quest for offering cashless digital payments services. On the lending side, low penetration of retail and MSME credit along with the promise of better experience and faster turnaround time have created strong propositions for customers. Fintechs in most of the other segments including Investment Management, Personal Finance Management, BankTech and InsurTech have initiated the market making process and currently target specific market niches. Indian Fin-tech segment’s present and future growth Indian FinTech is one of top five markets by value of capital funding and investments in the sector with nearly $270 million of funding in 2016. India remains one of the largest markets where the structural enablers to setup and incubate fintech have come together strongly and at an apt time. Combination of steady economic growth with low penetration of financial services and availability of supporting infrastructure such as internet data access, smartphones along with utility infrastructure including Aadhaar based authentication and India Stack capabilities are likely to provide the required impetus to India’s FinTech sector. Armed with right value proposition and by gaining confidence of customers, these segments are likely to witness their own break out moments and it’s just a matter of time, and some entrepreneurial energy and creativity before it happens. Excerpts: Delloitt India Report
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