Growth Aspect of Fintech in India
The Indian banking system is quite old, and still on developing stage so it is still not able to serve as many customers. On the other hand, the fintech companies are emerging and bridging the gap and giving innovative solutions to cater more services and be more efficient. For many entreprenuers, acquirers, investors, fintech is a very new market as a startup and a good investment. Fintech brings lot of benefits to the host country for its development. India has a lot of opportunity to invest in global fintech hub with increasing technology, mobile penetration in all fields, favarouable demographics, human resource, active startup system, etc.
Traditional players are looking upto invest in fintech hubs as purpose of investment or collaboration directly or indirectly to showcase their product and build strong network.
The healthy competition between banks and fintech startups can benefit both. While startups can benefit from the credibility the banks enjoy and latest trend and technologies via these collaborations.
Benefits of Fintech with emergence of Fintech startups in terms of payments, alternative lending and insurance:
- Better customer experience:
Now with online process, with just one click it is easy to make payments, etc. and its whole lot of easier process and much more convenient. Convenient as in- you do not have to go to post office for giving money orders and then wait for your payment to happen. It also involves more transparency. You get streamlined information and financial literacy and good management of money.
- Data generation boosts insight driven solutions
For the earlier generation lack of credit history was a problem. But now with fintech tools, gathering data of customers, their usage patterns, providing them relevant services becomes much easier. Now with more number of people can get access which benfits both fintech and the customers. Strategical approach can also be applied.
- Lower cost
It is a more user centric approach with transparency and clarity, it turns out to be better experience with the users.
- Increased accessibility of services
Fintech has now more accessibility, reduced cost from service charges and subscriptions. With technology friendly environment, it has simplified interaction with customized usage, ensuring greater number of people join.
- Reducing risk and increase complying with regulation
Financial industry is one of the industries with many regulations and strict laws. Fintech has developed innovative models to combat risks and create a secure and stable industry. They are less homogeneous than banks and offer diverse learning templates to improve culture of the industry. They can adopt good services and become largest service providers for financial services in India.
Role of government:
In India with growing success of fintech industries, it has set up many activities to promote them. India’s population is increasing at a rapid pace and so the customer base will increase and more and more people have started to use digital modes. As they find it very convenient and efficient mode. Government is promoting a lot of digital India campaign, which is a great opportunity for Fintech. The Aadhar card, can be very useful for first tier verification with all the data linked with the government. Government is progressing towards KYC verification for transactions, will be also beneficial. Fintech is growing fast and emerging in capital investment and government policies. And it has a potential future.
Fintech is an emerging field in banking industry with all the setup of today’s scenario. It has many benefits as compared to only traditional banking. It involves transparency more efficiency, comfort, track of data, customized usage, etc. government is playing a major role in developing and promoting fintech.
Company Vakil with help of technology makes legal registration affordable and easy