India is an ideal soil to nurture Fintech

Fintech also known as Financial Technology, is a technology which aims to deliver financial services or products. It encompasses various areas such as mobile banking, blockchain, cryptocurrency and digital payments and many more. We all use either Google Pay, PhonePe, Paytm or Mobikwik and many more, all these are fintech apps that one could just download and start using. As said, they offer the digital operation that one could easily perform using the smartphone. Fintech seems to enhance the digital culture in India. Siddharth Mehta Bay Capital CIO believes that fintech has got a tremendous growth scope in India. According to him the surge in internet usage and the number of people with smartphones has gone higher with time. 

Siddharth Mehta IL&FS's former director relates fintech with digitalization. According to him the popularity of fintech is also creating a space for the digital world. He believes that the kind of service offered by fintech today was never easy before. He further added that India is an ideal soil that supports the growth of fintech. 

Let us see why India is an ideal soil for fintech. To know more please scroll down. 

 

1. India is the largest growing population in the world with approx. 1.3 billion people and majority being relatively young are tech-savvy and adaptive to a digital environment. This act as a vast customer base for fintech to target the population and serve which offers significant growth opportunities.
   
   
2. The government’s demonetisation initiative in 2016 has created a digital push in the economy. Demonetisation was aimed to curb black money, to stop the usage and regulation of high-value notes from the economy and to promote digital transactions. It has acted as the catalyst for the growth of digital payments and fintech solutions in India, as now people had to do transactions in an alternative way, which led the fintech to expand its roots.
   
   
3. Since the outbreak, there is a surge in smartphones in India along with the internet. A significant portion of the population of India now has a smartphone and access to the internet, which has paved the way for the growth and adoption of fintech in India.
   
   
4. The Digital India campaign, Unified Payment Interface (UPI) and Aadhar system which are government initiatives, have played a significant role in creating an ecosystem that supports digital financial services. In addition, the Reserve Bank of India (RBI) have also introduced policies and regulations to enhance innovation while keeping customer protection in view. 

According to the reports the funding of fintech has jumped from 144% to $637 million in January. Even Paytm which is a super-giant fintech company in India was able to make significant profit and managed to reduce the loss in the financial year 2022 and 2023.

In conclusion, we can say that the ideal population of India along with the youth being high in number, a digitally adaptive environment and government initiatives to make India’s economy cashless and enhance digitalisation and many more factors act as supportive factors that enhances the ideal growth of fintech in India.