By Yuvraj Thakkar
FinTech has played a significant role in democratizing prosperity in India in recent years. With over 1.3 billion people, India is home to a large and diverse population, many of whom are under served by traditional financial institutions. FinTech companies have used technology to reach these under served communities and provide them with access to financial products and services that they may not have had access to otherwise.
One way that FinTech has contributed to democratizing prosperity in India is by lowering barriers to entry for financial services. Many FinTech companies have used technology to streamline processes and reduce costs, making financial products and services more affordable for a wider range of people. For example, mobile banking apps and online lending platforms have made it easier and more convenient for people to access financial services, even in remote or under served areas.
FinTech has also played a role in expanding the reach of financial services in India. Traditional financial institutions may not have the resources or infrastructure to serve every community in the country, but FinTech companies can use technology to reach customers in these under served areas. For example, microfinance organizations have used FinTech to offer small loans to low-income individuals and entrepreneurs in rural areas, helping them to start or grow their businesses.
In addition to lowering barriers to entry and expanding reach, FinTech has also provided alternative financial products and services in India. For example, peer-to-peer lending platforms have allowed individuals to borrow and lend money directly to one another, bypassing traditional banks and financial institutions. This has opened up new opportunities for borrowers who may not have qualified for loans from traditional sources.
Finally, FinTech has also contributed to democratizing prosperity in India by improving financial literacy. Many FinTech companies offer educational resources and personal finance apps that help people to better understand their financial situation and make informed financial decisions. This can be especially important for under served or marginalized communities who may not have access to financial education through traditional channels.
Overall, FinTech has played a significant role in democratizing prosperity in India by making financial services more accessible, expanding their reach, and providing alternative financial products and services. It has also helped to improve financial literacy and empower people to take control of their financial lives.
(Yuvraj Thakkar, MD StoxBox. The views expressed are author’s own.)