How Fintech Platforms Evolved in India
Businesses keep evolving. Every technological advance opens up new markets and a chance to turn ideas into reality.
Fintech platforms and modern technology have given the finance sector a complete makeover. The last decade has reinvented traditional business and finance practices.
What are Fintech platforms?
FinTech combines finance and technology. The term refers to a new group of firms that use cutting-edge technology to offer financial solutions. These are far more efficient and effective than those of traditional financial institutions.
Technology now plays a major role in the financial sector. Modern banking and financial services would struggle to stay afloat without it.
Even so, Fintech is not a replacement for traditional banking. It is a sector born to ease the burden on banking services. It is the natural next step for banking with the introduction of new technology.
Indian Fintech Landscape
Several companies now offer traditional banking functions as separate services. Firms are focusing on specific areas of banking, such as the following.
Digital Lending
These firms offer flexible financing options to SMEs and consumers. Companies use this technology to build better financial products, improve customer experience and speed up loan approvals.
Payment Services
Individuals and businesses can accept payments without swiping a credit or debit card. All they need is a smartphone, as all payments are made online.
Insurance
Fintech platforms have helped the document-heavy insurance sector go paperless. They gather data from insurance providers and simplify the application. This makes decisions easier for consumers.
India catching up with the world
Globally, the FinTech sector received $5.4 billion of investment in the first quarter of 2016, according to figures published by Accenture. India is catching up fast, as it has room for massive growth.
Between 2014 and 2015, Indian Fintech platforms recorded $1.77 billion in investment across 158 deals, according to Inc42’s FinTech Market Report 2014-2016.
The FinTech sector has many new businesses that need help and guidance to reach their full potential. In a very challenging, cost-conscious Indian market, incubators and accelerators can mentor these businesses.
