India’s FinTech market is one of the fastest growing and is ranked as the third largest FinTech market in the world with an expected market size of $150 Bn by 2025. FinTech companies certainly have the potential to reshape the financial services and financial inclusion landscape in India in a fundamental way. FinTech companies have played a major role in increasing access to the entire financial services such as AePS, Aadhar Pay, Remittance and Recharge for people. It has democratized digital payments and increased access to digital payments and online banking.
Gandhiji once said, “The Indian soul lives in its village.”. In fact, it is estimated that the village is home to almost three quarters of our population. There is no denying that FinTech industry is making its way on the undulating roads of rural Bharat. Right after demonetisation, India realized the need to adapt to technology and adopt digital payments. While the rest of the country is walking the digitization lane, rural India remains on the back seat due to lack of adequate commercial bank presence with only 5% of the 600,000 villages having a commercial bank presence in 2019. Infrastructure costs, low utilization due to lack of awareness, inconsistent availability of electricity, theft and vandalism are among the major deterrents for physical bank branches and ATM operators in rural areas. Such challenges continue to slow down the provision of basic banking facilities to this segment of the population. Slowly with the right resources and efforts by different FinTech companies, rural residents have also become adept at using digital payment and banking methods.
Financial security that comes with financial inclusion is one of the most important aspects required for the smooth functioning of a country. Over the years technology has played an important role in facilitating financial solutions and making them available to everyone, even in remote areas. Generally, these companies are creating a simpler, smarter and safer banking model for its customers by facilitating finance with technology. FinTech companies have calmed down services like online payment, money transfer, Aadhar Pay, mobile recharge, bill payment and hotel and ticket booking, among others, and has made it accessible even through mobile phones for people living in remote areas. The company today recognizes the unique challenges in offering financial services to this segment and thus leverages the network of entrepreneurs in the SURU Area (Semi-Urban and Rural) to provide assisted financial services.
The use of financial services has increased significantly since the penetration of FinTech platforms in rural areas. Even our Honorable Prime Minister, Mr. Narendra Modi has always emphasized on strengthening digital services in India to move towards Atmanirbhar Bharat. Further, the Government of India as well as the RBI have taken several steps to ensure the safety and security of digital payments in the country. RBI is also observing ‘Financial Literacy Week’ in February 2022, to spread the message of financial education among people across the country. Recently, Finance Minister Nirmala Sitharaman said that the future of finance in India will be governed through digitization. In July 2022 alone, 6.2 billion transactions worth Rs 10.6 trillion were conducted.
Fintech in India has entered a new era with a phenomenal increase in FinTech adoption rates in the country. India’s promising and promising FinTech sector is home to 20+ FinTech unicorns and is poised to up the game of financial solutions and providers in the coming years. This is the ideal”Amritkaal of Fintech”.
The views expressed above are the author’s own.
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