Fintechs Enter The Fine-Tuning Phase
The evolution of the fintech industry in the subcontinent posts an inspiring anecdote. Started as a value added feature of banking, fintech, during the mid-2000s, manifested its early signs with a banking correspondent (BC) model. Then again, like any other new technology, the new concept had to curate its market first and the BC model with the basic level of tech exposure paved a way for this by bringing financial services to the rural household. But the crux of the fintech industry was molded at the beginning of the yester decade 2010, thanks to
the emergence of the digital marketplace. Then just, bam, we are en route the modern fintech.
The new government coming into power, the launch of the iconic Digital India initiative, demonetization, and India Stack project, all aided in growing fintech as a robust ecosystem in shut-eye time. With UPI becoming more and more mainstream, India Stack opening new avenues, Neo Banks reaching out to the grassroots, the emergence of direct plans of mutual funds, and capital markets continuing its foray into the digital space, the fintech industry today is entering its fine tuning phase. The results are amazing. EY’s ‘Global FinTech Adoption Index’ 2019 says that India, along with China, leads emerging markets with a high 87 percent fintech adoption rate in 2019.
Of course, startups are the ones who make the most of it. Although, while deciphering the challenges in the new phase, they will have to again stick to the basic market considerations. India’s financial literacy is still in its nascent stage and the market’s attitude itself is a challenge. The digital payments value of $65 billion in 2019 is expected to grow at a CAGR of 20 percent till 2023, and according to NASSCOM, the Indian fintech software market is expected to reach $2.4 billion by the end of this year. Definitely, it’s good times ahead and Indian startups are up for the challenge. Their stories need to be told and that’s precisely what inspired us to come up with this issue - ‘10 Most Recommended Fintech Startups - 2020’.
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