Broadly speaking, FinTech (financial technology) is all about application of technology in financial services or used to help companies manage the financial aspects of their business. This is not a new concept but has been around in one form or another for a long time.
Fintech India market has shown enormous growth over past few years. It is the Fintech startups that are leading the way when it comes to long term investments. India is steadily becoming a hub for many Fintech startups. The prominent names in the list are Paytm, Pine labs, PayU, Capital Float, Happay and Faircent. SoftBank has been actively investing in many budding fintech startups. The reports on Indian Fintech ecosystem clearly suggest three fold growth in the number of Fintech startups during 2015-18.The government is doing its bit with several campaigns urging Indians to shift to digital means of doing business. It is all about bringing that change in the mindset of how business operates which will ensure long term benefits.
Here are some of the reasons why investors are showing keen interest in Indian Fintech market:
- Fintech Companies add the much needed Financial Power
India has faced tough times when it comes to the reach of Financial services. Companies like Google and Facebook launched exclusive payment related services only in India which proves that mobile payment market has strong growth prospects in India. Fintech companies provide that much needed financial freedom to unbanked users helping them to perform financial transactions in secured and streamlined fashion. This is the next generation India and such changes were just a matter of time.
- New products in Financial services
Finance has been a changed domain thanks to technology. Finance together with technology has attracted effective growth avenues. The next generation of technologies like Artificial Intelligence, Machine Learning, Block chain and innovative solutions provided by FinTech has emerged potential investment options. The Fintech startups have been able to do really well in real short time as they connect well with end customers in solving their problems.
- TechFin enabling the Fintech Ecosystem
Many tech startups have emerged which enable the FinTech companies with tech solutions enabling them to focus on their core business. For example the fully automated end to end digital lending software provided by FinTechLabs ensures loan origination, marketplace funding and its associated services. This helps to simplify complex requirements with technology enabled lending.