Fintech (Financial
Technology) revolution
Fintech refers to the use of technology in terms of new processes, business models, products or applications to improve financial operations. By utilizing specialized algorithms and software, businesses are able to better manage their financial processes and operations.
Example: ATMs were once considered cutting-edge fin tech, as were signature-verification technology, which were first utilised by banks in the 1860s. Fin tech helps firms manage their financial procedures and operations more effectively. Crowd funding platforms, mobile payments, crypto currencies, block chain, and insurance are all examples of fin tech.
Indian Prime Minister Narendra ji called for a “Fin tech revolution” in India with a “security shield” on December 3, 2021, at the launch of In finite forum on Fin tech.
The Indian fin tech industry has a cumulative funding of over US$27.6 billion and is expected to be valued at over US$150 billion by 2025.
-Amitabh
Kant (CEO, NITI Aayog),
Fin tech market in India
In India, there are approximately 2100 Fin tech firms. The Indian market is becoming accepting of super applications. It's also worth mentioning that Big Tech companies like Google, Amazon, and WhatsApp have adjusted their operations in India to give specialised options like Google Pay, Amazon Pay, and WhatsApp Payments. Paytm, a payment app, is also on track to become a Super app.
Major trends driving fin tech revolution in India
· Supply side factors
· Governmental initiatives
· Investments in India’s Fin tech sector
· Investments in India’s Fin tech sector
· Demographic opportunities in India
· Demand side factors
· Technological advancementsDifferent Fin tech segments in India
- Pay Tech
- Lend Tech:
- Digital banking
- InsurTech
- Wealth Tech
- Finance Fin tech: The various services that can be provided in this segment include:
- Accounting:
- Procure to pay
- Quote to cash
- Taxation
- Reconciliation
- Regulation Tech
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