Overview
- Introduction to the fintech ecosystem in India
- Rise of Digital Banking and Cashless Transactions
- Explosion of Embedded Finance Solutions
- Era of Decentralisation
- Open Banking
There is a growing trend toward people managing their money and business online rather than putting up with the glacial pace, red tape, and bureaucracy of traditional financial institutions.
The fintech sector is booming, with traditional financial institutions ramping up their investments in financial technologies to usurp startups and deliver financial services faster and more efficiently.
“The global Fintech market is expected to grow exponentially and reach a colossal market value of approximately $324 billion by 2026. Here is a comprehensive list of significant trends that will shape and define the industry’s future”
Here are the top trends in fintech that we need to watch out for
Rise of Digital Banking and Cashless Transactions
In the field of personal finance, consumers are increasingly seeking seamless, unrestricted and simple access to their bank accounts on their smartphones. There is fierce competition among traditional banks and financial institutions to integrate their products and services into mobile banking and provide seamless user experiences.
With the unprecedented rise of digital-first banks and Neo-banks, traditional banks and financial institutions are racing to develop mobile banking applications as well as provide periodic updates to increase efficiency and effectiveness in their pursuit to supplant the competition faced by its new adversaries in the form of these neobanks.
With low fees, convenient mobile banking and an enhanced customer experience, Neo-banks are attracting customers in droves, taking an unassailable lead over traditional banks.
Panademic has given digital transformation in banks a big boost
In this pandemic-stricken economy, the desire for cashless transactions is slated to rise, opening a world of opportunities for digital wallet providers. ACI Worldwide reports that more than $70.3 billion in real-time payments transactions were processed globally in 2020, up 41% over the previous year.
Digitally linked transactions not only increase transaction volume, but also serve as a repository for business data. Using the information gathered and compiled, new services can be developed. Consequently, new revenue streams are generated, unlimited data offers are offered, and cost-effective business setups are established.
Post offices will be an integral part of the core banking ecosystem under Budget 2022. This will propel the long-held objective of the government of financial inclusion and account accessibility via net banking, mobile banking, ATMs as well as online funds transfers between post office accounts and bank accounts.
This will be especially beneficial to farmers and senior citizens in rural areas as India Post is the most widely distributed postal system in the world, with offices in the nooks and crannies of the country, thereby enabling interoperability and financial inclusion.
The move would allow unbanked customers to receive direct transfers of government subsidies thereby bringing them into the formal banking ecosystem.