New initiatives by the government to boost financial inclusion and promote a cashless society have opened up windows of opportunities for fintech companies.
Through 2017, we have seen technological advancements, new regulatory policies, and ever demanding customers reshape the banking industry’s landscape.
For some time now, incumbents of the financial sector have been under pressure to address the demands of the well-informed millennial customer while staying relevant and profitable at the same time. Gone are the days when banks viewed fintech companies as disruptors; today, they are partners that are pairing up to take on the challenges of a digital-first world.
The Indian fintech scene comes with an added extra; new initiatives by the government to boost financial inclusion and promote a cashless society have opened up windows of opportunities for fintech companies where first-mover advantages are tremendous. As a result of the government’s initiatives, there has been a sharp increase in consumer adoption of fintech. EY, one of the big four consulting firms, in its FinTech Adoption Index for 2017, states that 52 percent of India’s digitally active consumers are adopting fintech; a figure that is only second to China’s 69 percent, which is the global highest.
In these times of uncertainty, only one thing is certain – change. Below are some of the fintech trends that could become major game changers in 2018.
As the Indian fintech space grows to reach an expected $2.4 billion by 2020, 2018 will be a critical year in that journey. Customers are increasingly open to banking innovations driven by technology, government regulations are leading the charge, and private players are making major investments. This is leading to greater financial inclusion as everyone gets access to advanced banking services and a wide range of financial offerings. These trends are sure to play a key role in this transition.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)