Innovation and technology have brought about a radical change in traditional methods of doing business. The digital revolution has transformed the traditional aspects of management. From planning to evaluation, every platform is now controlled by AI. Fintech is a technological innovation in financial services. A modern way to compete with traditional financial methods in the delivery of financial services.
The fintech industry is thriving worldwide at a fast pace and received USD 17.4 billion in investments in 2017. The two words ‘finance and technology’ can be measured by going into a bank to request your balance and the ability to pull up that information in real-time on your phone. This is how fintech is impacting an individual’s life. Moreover, it offers a number of potential benefits such as speed and convenience, cheaper deals, increased choice, and more personalized products.
Fintech is empowering humans to take charge of their financial lives, leading to much greater financial suitability than ever before. It’s tearing down the old silos and helping to advance the consumers’ financial situation and the transactions easy to process. Moreover, it reduces the span of time for transactions and gives widely positive outcomes by leveraging advanced technology. In short, the concept combines traditional financial services together with the latest digital technology and Big Data to make end users’ lives easier and better.
Government Initiatives To Support The Growth Of The Fintech Industry
Increase in the number of start-ups; rising penetration of fintech from corporate to retail customers, many are considering how they could leverage fintech to improve their services or experience, respectively; and increasing investments by investors such as Angels, VCEs and PE Houses are driving the growth of the fintech industry. Government support is one key trend boosting the demand worldwide, for instance, The Start-Up India initiative launched by the India Government in January 2016 includes USD 1.5 billion funds for fintech start-ups.
Fintech In India: New Technology To Take Over Traditional Banking Methods
India is transitioning into a dynamic digital ecosystem, offering fintech start-ups a platform to potentially grow to compete with the global benchmarks. This has led the Indian fintech start-ups, from tapping new segments to exploring foreign markets.
The traditionally cash-driven Indian economy has responded well to the fintech opportunity, primarily triggered by growing penetration of e-commerce and smartphone. The transaction value for the Indian fintech sector is estimated to be approximately USD 33 billion in 2016 and the industry is anticipated to grow at a CAGR of 22% in the coming years.
The fintech industry is likely to gain broad support from start-ups and regulatory banks, worldwide and to grow robustly in a short span of period. The timing for this industry is certainly right – Bloomberg recently mentioned in its report “as regulators around the world scrutinize the explosive growth of new technologies the industry of fintech will show the most attractive growth”.