Fintech Industry is Shifting Gears
What an eventful year 2020 was. The lockdowns and social distancing norms were a blessing in disguise for the fintech industry, as the Covid-19 outbreak led to a 30 percent strong explosion in digital payment transactions.
The New Year adjoins even newer hopes since over 2.3 billion UPI-based payments were processed in the country in January alone. The total quantum of digital transactions is expected to cross Rs.4,630 crore by the end of the current financial year.
It’s going to be field days ahead of the fintech industry.
Industry aficionados echo that the year 2021 will push India more towards becoming a digital-first economy and fintechs are well positioned at the receiving end of its benefits. And this time, they are marginally ahead of the banks itself, being the advocates of financial inclusion. The rapid growth of fintech players has already aided in accelerating financial inclusion, thanks to new age technologies like AI and ML that open novel avenues benefitting both the industry and the consumers alike.
The predictions are also pointing in the direction that the banks in the country are moving more to the backend of things. This engenders an excellent opportunity for fintechs to directly connect with banks’ systems so they can build products on top of the banks’ regulated infrastructure, using Banking-as-a-Service (BaaS). Fintechs could leverage BaaS to develop seamless, scalable payment experiences across and within borders.
It enables them a whole world of entitlements by creating simpler working solutions, removing the need to obtain regulatory licenses, reducing operational costs and providing the new age customer experience. We believe the time couldn’t get any better to come up with our Fintech Solutions Providers edition.
Do let us know your thoughts.