Fintech has become an emerging trend as the 21st century progressed into the age of financial ventures and investments, digital initiatives and rising start-ups. Technological advancement in consumerism, finance, trade, business and commerce has allowed companies to merge their finance and technology to take forward the digital way of financing.
New technologies are coming up, leading to solutions of artificial intelligence, enhanced financial decisions and other marvels of the century. Globally, companies have come up with schemes of financial investment and inclusion through technology. The main users of fintech are mainly the B2B of the banking world and their clients, and, the B2C of the small and medium businesses with their consumers.
The Indian market is now about to enter a new age era, where old businesses and new start-ups have started utilising the technology, the digital world, the social media to introduce financial inclusion of the Indians and to encourage technological enabling of Indians to undertake financial ventures. Few recent industry reports have opined that increasing trends of users turning to online payment schemes and utilising the policies of financial inclusion have been rapidly enhanced by the demonetisation of high-value Rupee currency notes.
Fintech Start-ups are harbingers of India’s hopes for full digitalisation of financing, banking, monetary transactions and other financial activities. Both the government and the banking world are increasing efforts to financially enable and include every Indian so that within the next decade the country becomes almost totally cash free. Innovative freedom and creativity have allowed fintech Start-ups to emerge and operate. Time is ripe for these financial players to digitally develop the country and to financially empower the citizens.
The public and the private sector both are looking for collaborative growth to ensure a solid establishment of the system. To be able to expand abroad, the fintech companies have taken market driven and collaboration driven approach. Now, is the time when fintech companies can go abroad and disrupt the traditional financial services by a thorough deployment of advanced technology which can speed transactions, better serve customers and address lacunas in the most optimised way. With the banks and institutions collaborating with fintech operators to future-proof their businesses, Indian fintech companies have an upper hand in terms of experience and setting up practices across.
Indian Stack: changing paradigms of financial services
India has seen a rampant growth across segments including economic upliftment and technological advancements. However, system-level inefficiencies have failed to achieve optimised growth. Especially in financial services. Consumers, as well as financial institutions, are mired with challenges related to technology adoption and rigid compliance. In line with this, India Stack has been a great boon for fintech services providers. Fintech, riding on India Stack, enabled a profound transition due to seamless ability to offer agility, simplicity and scalability. Indian owing a formal banking account has significantly gone up from 35 percent to as high as 80 percent in the recent year. Digital transactions in India is set to touch US$1 trillion mark in 2013. This meteoric rise has been supported by India Stack. And Indian Fintech organisations have fully optimised this platform to maximise business value. This is a clear testament of Indian Fintech are leveraging India Stack and exploring growth avenues. As India is rising to Fintech Revolution, it can be a significant guiding force for global economies for offering a seamless experience.
We can see by the example of Abu Dhabi, which is touted to be amongst the most positively affected by the expanding fintech culture, that financial centres being set up are responding to recently launched programmes such as start-up accelerators etc. in quite good terms. These strategies are diversifying the country’s economy and also increasing significant contribution of SMEs to country GDPs. India’s model can be reflected and replicated across different markets and Indian Fintech organisations. International growth is the next frontier for FinTech companies. India’s fintech sector is fuelled by a large market base which can redraw the lines of how finance and technology correlate.
Abu Dhabhi has a large appetite for innovation and disruptive companies stand a good chance to make an impact. The Abu Dhabi’s financial centre Abu Dhabi Global Market (ADGM) aims to make Abu Dhabi a global financial hub. With that in mind, ADGM also launched a regulatory laboratory with an aim of fostering and nurturing Fintech in the region. ADGM invited two Indian startups. Also, many other fintech Start-ups have already established their international presence. Indian fintech has swiftly transformed the way India used to opt for financial services. Fintech is becoming a force of transformation in the most optimised way. With this inspiration, Indian Fintechcan surely conquers international geographies.
Views expressed in this article are a personal opinion of ManavJeet, MD & CEO, Rubique.