Introduction to Fintech companies in India

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Introduction to FinTech Companies in India

• India is paving the way for financial inclusion
  for the huge sectors

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• With the rapid advent of digital in India since
  the past few years, it has increasingly become
  easier to access financial services. A widely
  used term in the new digital age, fintech, has
  contributed to the changing patterns of consumer
  banking. Around the year 2015, India saw a boom
  in technology adoption in financial services.
  According to Research and Markets, in 2019,
  the Fintech companies in India was valued at Rs
  1,920 Bn and is expected to reach Rs 6,207 Bn by
  2025, expanding at a CAGR of 22.7.
•  
• Even at an early adoption stage, fintech in India
  is paving the way for financial inclusion for the
  huge sector of unbanked and under banked
  population by weeding out challenges like high
  cost of traditional banking services. It is
  serving as a catalyst in the payments network,
  which is proving advantageous for small
  borrowers, SMEs, MSMEs, rural entrepreneurs,
  self-help groups and end users. Fintech has a
  critical role to play in breaking barriers of
  high-cost traditional banking.

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• The Fintech Ecosystem

• Let us deconstruct the various players in a
  fintech ecosystem and how they are inter-linked
  to Fintech solution providers.
• Investors  Venture Capitals, angel investors and
  private equity houses are considering fintech
  providers as the next golden goose.
• Traditional financial institutions  Banks and
  financial service providers are devising ways to
  collaborate with fintechs to leverage the
  technological advent as well as to reduce cost of
  operations
• Government and regulators  Suitable laws protect
  the end users as well as lay the guidelines for
  fintechs to operate within set parameters
• Universities and research institutions  The
  acute shortage of talented and equipped workforce
  is being met by institutes with a curriculum that
  focuses on fintech companies in India
• Incubators  Several established companies are
  setting up incubators for fintechs in India to
  experiment and develop their services.
• Users  The end user remains the most important
  cog of the fintech wheel. The increased adoption
  and acceptance by Indians are paving the way for
  more fintech companies in india.

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• While the rural population has been unwilling to
  accept fintech due to lack of exposure, urban
  India is aggressively adopting it. However, in
  the last few years there have been Government
  initiatives like Aadhaar for eKYC, UPI for
  payments, e-wallets for transactions,
  sound-wave-based payments for rural consumers
  which have helped bridge a huge gap. The adoption
  of these innovations highlights the fact that
  India is building a cost-effective, large-value,
  fintech-driven ecosystem that is focused on urban
  as well as rural segments. Fintechs companies in
  India have been transforming the narrative for
  financial inclusion by focusing on cost of
  financial services, accessibility of services,
  information incongruence, and lack of verifiable
  ID.

FinTech Innovations in India

• Payment Services  Payments are a lot easier now.
  You can have a multitude of payment wallets
  without the lengthy procedure of opening a bank
  account. All you need is a smartphone and a
  mobile sim and you can buy almost everything
  within the wallet limit. Players like PayTM,
  Freecharge and MobiKwik have completely disrupted
  the Indian payment scenario. Physical wallets are
  no more a necessity when you go out. Just carry
  your phone and scan away! 

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• Digital Lending  Fintech innovation is being
  leveraged to create a space in lending.
  Traditionally, customers have to go through long
  cycles and paperwork to get a loan. Prominent
  companies like Union Bank of India, Profectus
  Capital, Bank of India, UCO Bank, SIDBI etc. are
  changing the age-old method. Customers without
  steady employment, bank account statements can
  also avail loans now. Fintech is opening up a
  host of lending models such as flow-based,
  vertical-based and ecosystem-based lending.
• Insurance  Another sector going the paperless
  way is Insurance. Aggregators like Policybazaar
  and Coverfox have emerged which help consumers
  choose among host of service providers by
  comparing their offerings and purchase the most
  suitable one.
• Savings Wealth Management  Fintechs like
  Scripbox and Funds India help individuals save
  and invest their money. These platforms provide
  comparable options to choose from.
• Remittances  Oxigen and Payworld are among the
  notable remittance platforms which have made
  inward and outward remittances simple and cost
  effective.
• Point-of-Sale  Fintechs in this segment provide
  card swipe machines to enable cashless payments.
  Demonetization has given rise to new players like
  Mswipe, PineLabs, ICICI Merchant Services in this
  segment which has made the market competitive.

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• How are FinTechs companies in India reshaping the
  financial services landscape?

• The topmost barrier to traditional banking is
  high cost which has left the larger chunk of
  population unbanked or underbanked. Fintechs are
  here to disrupt that by eliminating expensive
  physical networks, outdated legacy operations, IT
  systems and creating a lean operating model.
• The traditional banking ecosystem has been very
  homogenous with almost similar offerings and
  service charges. Fintechs provide a scope of
  diversifying the services and personalizing to
  cater to all strata.
• The fintech companies in india has developed
  advance methods for risk assessment leveraging
  emerging technologies such as Blockchain,
  Artificial Intelligence and Big Data Analytics.
  The credit requirement scenario can be changed to
  penetrate into remote areas.
• Fintech innovation aims to create superior
  financial products, enhance customer experience
  and increase transparency.

Original Source Fintech Companies In India
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