Future Of FinTechs In India And The Role Of Government Regulations
Fintech, which is the amalgamation of finance and technology, is a term which has gained a lot of prominence in recent years. It essentially means the new technology which is being adopted by financial services companies in order to improve and better the delivery of their own services.
In India, the growth has been stupendous. As per a recent report by Research and Markets, as of March 2020, India along with China, had the highest FinTech adoption rate which stood at an impressive 87 percent out of all the emerging markets all across the world. The business report went on to mention “The FinTech market in India was valued at Rs 1,920.16 billion in 2019 and it might well reach Rs 6,207.41. (source: Businessworld)
Demonetization was the turning point in the Indian market – tech innovators and financial institutions joined hands and this partnership has taken off and by the current trends, they will go a long way in building an eco-system which is seamless and will benefit all the parties.
There are several elements that have combined and these include payment gateways, the emergence of Bitcoin, digital currencies as well as Internet banking. As such, FinTech is perfectly poised to revolutionize the industry and also offer personalized service to all the customers. And hey, while doing so, the customer will truly be the king.
It should also be mentioned here that there were initial apprehensions and several large banks were not quite welcoming as they were not very happy to incorporate technology in their systems. Consumer behavior has changed and with technology sweeping almost all the sector, even the large financial institutions could no longer ignore what was happening around them.
At this point, the role of government regulations has become very critical – for transparent systems and a robust eco-system will only promote healthy competition in the market.
As per a report by Businessworld, earlier this year, the National Association of Software and Services Companies (NASSCOM) had reported that around 400 FinTech firms operated in India and almost all of these were given a massive boost by foreign investments in FinTech-focused start-up accelerators and incubators.
It will not be a shout in oblivion to state that the Indian tech entrepreneurs have in many ways, reshaped and have revolutionized the FinTech industry with their own innovation.