The Rise of Fintech in India
Traditional financial services, over the years, have undergone a transformation globally that has been brought about by innovative ideas and technology. In 2015, more than 12,000 Fintech start-ups popped up in the world with a huge investment of USD 19 billion. Most Fintech companies in India are still at a growing stage which is why they seek collaboration with research institutions, universities, industry bodies and government associations. With the industry growing at a rapid rate, it is at this point in time that India has created a system that allows start-ups to grow aggressively into big businesses. The Indian Fintech software market is predicted to touch USD 2.4 billion by 2020.
With a plethora of options, the range of services provided in this industry is massive and has changed the way consumers perform their daily transactions. The financial services market in India is yet to be tapped, with more than 80% of transactions carried out through cash and 40% of the population having no association with any bank. This presents a big opportunity for start-ups to conquer the different segments by bridging the gap.
Since collaboration is crucial for the rise of Fintech in India, this is where building of networks, exchange of ideas and conversion of opportunities play a big part. The following are the relevant stake holders that decide the success of the industry:
The number of Fintech start-ups is on the rise in India. It is estimated that by 2025 Fintech companies can produce more than 21 million new jobs. This is more so because of initiatives like the focused accelerator program by state and local governments and banks. These companies are quickly being empowered to change the landscape of the financial sector.
Universities and Research Institutions
Academic institutions play an important role in shaping the views of soon-to-be entrepreneurs. Of late, the institutions in India are playing a proactive role by organising competitions and events in addition to offering technical courses that are focused towards the aspects of financial technology. Universities also play an important role in availing the research facilities and know-how to bridge the existing gaps in the industry.
Government and Regulators
The government and the regulatory institutions such as Securities Exchange Board of India (SEBI) and Reserve Bank of India (RBI) are showing their support to Fintech companies in the contemporary economic ecosystem. The government launched the ‘Startup India’ initiative in 2016 to build a stable environment in the country for start-ups, encourage innovation, produce large scale employment opportunities and foster sustainable economic growth.
Financial institutions are another entity that promotes Fintech companies through collaboration and even otherwise. They are proactively investing, mentoring and supporting the deserving start-ups. A variety of Banking, Financial Services and Insurance (BFSI) companies are working with them. Furthermore, to proliferate the success of fintech startups, many Venture Capital (VC) firms and angel investors are now focusing and placing high bets on the sector due to the growth potential and opportunities.
Incubators and Accelerators
Incubators and accelerators play a role which is not just limited to funding, but also to enhance soft skills and strengthen the financial industry. Some key examples of incubators are PayPal Incubator and Yes Fintech.
Users for the most part have remained extremely open to the idea that there can be a transition of the Indian Economy towards a digitally driven state. Routine transactions traditionally conducted by cash are now being done through mobile banking and cashless transactions.
Fintegrate – India’s Biggest Fintech Event
The fintech sector has the potential to change the ways businesses function and make the dream of digital India materialize in the best possible way. Fintegrate makes it possible for the fintech leaders and startups to come together and pave the way forward towards sustainable growth. Moreover, the workshops and panel discussions conducted at Fintegrate help in facilitating collaboration among fintech companies in India.