Fintech landscape will see emergence of innovations that will facilitate holistic financial services over single mobile interface
By Raj N
The Covid-19 pandemic has changed the whole scenario for the fintech industry. Technology has been the foundation for the growth of fintech in India. Major reforms that have been introduced in the past few years—such as GST, Aadhaar as well as UPI—could be built only due to the latest technologies available. The fintech platforms played an important role in making financial access and transaction processing for end-customers through artificial intelligence (AI) and machine learning (ML).
In India, there have been more than 500 million internet users, with more than 95% of these users accessing the internet through a mobile phone and using it to transact online. The surprise demonetisation move has given a massive fillip to the fintech sector. Government policies are evolving quickly, providing a favourable backdrop for fintech.
Fintech has already altered the market. Among traditional financial organisations, 82% plan to increase collaboration with fintech companies in the next 3-5 years. That’s because many companies fear they will lose out. And 88% of incumbent financial institutions believe a part of their business will be lost to standalone fintech companies in the next five years. One of the factors that could propel the growth would be partnerships between this dynamic sector and the experienced traditional banking sector. Collaboration between the two can bring the best of both worlds and offer unique products to a larger number of people in India.
The fintech landscape will also see the emergence of innovations that will facilitate holistic financial services over a single mobile interface for Indian users across the world. The new-age fintech platforms are already offering consolidated fintech solutions to users, enabling them to carry out a range of operations such as spending, lending, investing, fund transfer, etc. Assisted e-commerce on existing B2B2C platforms is another feature that new-age fintech will provide to Indian users in the post-lockdown, post-pandemic future.
The author is founder & chairman, Zaggle, a fintech firm