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Opportunities and growth of Fintech

11 Jan, 2019 / mvsblog

Change in financial transactions through Product/ Service innovation has made the early startups to have phenomenal growth. The financial services industry impacts us in broad sweeping ways, perhaps more than any other sector.

Companies like PayPal that was a pioneer in a web-based transaction enabled many B2C companies to promote their business.  Few companies worked on the core process and made software based switches to handle the subsequent increase in the volume of transactions.

Few more companies have now worked on authentication technologies. Banks have started to invest more into innovation capital and have increased participation in incubation ideas to catch the next generation products early. Most of the transactions are in B2C and have been customized for an URBAN and educated population. Companies like PayTM, Razor pay, Google pay, etc. have started to make every transaction digital.


Blockchain Innovation brought in BITCOIN and Cryptocurrencies that has now enabled multicountry transaction in the Digital way.  Though it has threatened the core banking system of each country, this innovation is more than likely to be accepted and appreciated in the multi-domain usage.

The Government of India is taking several measures to promote and encourage digital payments in the country. Through the ‘Digital India’ campaign, the government aims to create a ‘digitally empowered’ economy that is ‘Faceless, Paperless, and Cashless’. Some of the different modes include the use of debit/credit cards, internet banking, mobile wallets, digital payment apps, Unified Payments Interface (UPI) service, Unstructured Supplementary Service Data (USSD), Bank prepaid cards, mobile banking, etc.

Government innovation of UPI has been given a boost for adoption by all Banks and is rendered accessible for RURAL population also.  

The question is, how is the government enabling the other side (people from villages) to benefit from these changes. There is a large and increasing gap concerning the reach. This gap provides the Fintech Innovators with significant scope for Inclusive participation in Digital revolution. I remember reading that by 2017, the govt loan waiver for Farmers was approximately Rs 10 lakh crore. Innovation in one such sector can benefit every stakeholder.

Most of the innovations related to transactions that have taken place till now bring in transparency, but not so much productivity or efficiency. The increased consumption is more than likely to have an impact on the recession.

There is a lot of scope in the FinTech industry concerning the B2B Domain. Many companies are attempting to solve issues related to this transaction. If successful, it will improve the efficiency, productivity and in time, drive the optimized pricing. It would also create equal opportunity for the SME segment.


The truth is that the common man yet to be benefited.

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