Technology, in all its forms, has become a common mainstay in our lives today. Advancements in technology have brought about a significant change in the way traditional financial services organisations operate. The traditional cash-driven Indian economy has taken up the technologies opportunity, triggered by the Covid-19 pandemic and various government initiatives that have been implemented over the years. From payments, lending, wealth management, investing, credit reporting, etc., technology is disrupting the entire financial services value chain. In recent times, innovations in mobile money and peer-to-peer (P2P) lending have also led to greater penetration of credit across the country.
While change was already on its way, the Covid-19 crisis has sped up the way we transact, deal, record, and use money. The emerging ‘Low-Touch, High-Tech’ economy is literally driving enterprises to migrate their businesses online, and thus FinTech is poised to boom in the coming years. Traditional companies and laid-back customers who had reservations about adopting innovations such as digital banking, for example, will quickly get off the fence, as the digital transaction mode grows by leaps and bounds.
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There is a growing connection between NBFCs and the FinTech ecosystem. Financial services companies are using technology more than ever across their entire process loop right from lead generation, customer on-boarding, underwriting, disbursements and collections. This amalgamation approach has helped enrich the customer’s experience digitally multi-fold. New technologies like ML, IoT, AI, Blockchain, and Cloud computing are the major drivers of this movement and organizations that take these up would achieve far greater success than those who do not.
On the other side of the coin, is the need for FinTechs to work towards ensuring greater confidence amongst the large Indian consumer base which has always been very wary in using technology for financial transactions. The other challenge that continues to hamper the rapid growth of FinTechs is the expanse of the Indian population across the country having access to Internet, smart phones and continuous electricity, at the most basic level, to power up their tech devices.
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As the FinTech industry grows and evolves, it has the potential to further enhance the entire value chain and bring into the fold the unbanked and till now, unserviced sections of the Indian population. Improved accessibility, faster and newer payment methods should remain the focus of FinTech applications in the coming years. FinTech will continue to disrupt the functioning of the financial services industry, and only time will tell when the Indian consumer well and truly jumps onto the tech bandwagon to run transactions for all of his or her needs.