India’s fintech ecosystem has grown rapidly in the last five years taking the world by storm. At present, India is running on the digital path, taking huge steps towards becoming an advanced fintech nation. A strong strategic framework consisting of Aadhaar formalizing identity, UPI and IMPS building scalable platforms, and a host of fintech startups have paved the way for the rise of a digital economy.
What is Fintech?
FinTech or fintech stands for Financial Technology, and fintech firms specialize in technology development to support the banking and financial businesses.
Today all of us have mobile banking on our phones, by which we can do all our banking transactions at our fingertips very easily from any place, we need not go to any particular bank. There are applications used to calculate and to get a reminder of EMIs and insurance premium quotes as well. Fintech startups fetched important changes to our economy. The new payment system has reformed the way we all do business.
Digital India is a campaign launched by the Government of India. It was Launched on 1 July 2015, by Indian Prime Minister Narendra Modi. Its goal is to ensure the Government’s services are made accessible to citizens digitally by improved online infrastructure. And by increasing Internet connectivity or making the country digitally empowered in the field of technology.
We have a goal of becoming an economy of 5 trillion USD by 2025. The Digital India initiative will help massively in achieving this goal. The covid19 pandemic showed all of us that digital connectivity is crucial to business in times of crisis.
At that time many companies were operating online only as the offices were shut down and work from home was going on. This leads us to the issue that we will need more digital infrastructure than what we presently have.
The pandemic made the digitalization of our economy grow faster, digital infrastructure is the foundation of this change.
How Fintech Companies contributing to making India Digital
Despite the coronavirus pandemic that unleashed devastation across most areas. India has an 87% Fintech adoption rate which is more than the world’s average adoption rate of 64%.
Indian fintech companies have got 2.7 billion dollars of investment last year. This was another large investment close to 3.5 billion dollars in 2019 as confirmed by Professional Service Firm KPMG. Likewise, the report of Florida-headquartered ACI worldwide revealed that 25.5 Billion constant exchanges were made in India in 2020. Which is the highest in the world.
The increased implementation of Fintech technologies powered by artificial intelligence (AI), machine learning (ML), data analytics, process automation, and Blockchain has revolutionized the financial world.