Opinion

The digital confluence of fintechs, ecommerce, and banks

Rajesh Gupta
15th Feb 2018
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The fintech sector, which is witnessing a metamorphosis in the present age of digitisation, when seen in combination with inherently linked sectors, i.e. banking and ecommerce, is setting up the pace for huge economic growth.


This is an era of technology and it is marked not just by the advantages of innovative technological interventions but also by the sheer convenience extended to the end-users. The digital confluence of fintechs, ecommerce and banking sector is one of much talked about changes in the system that has revolutionised the way even a common man functions.

Shopping and making payments, borrowing loans or opening bank accounts no longer means a hectic process.

If numbers are to be believed, then the rise in the number of omni-digital banking customers has grown from 27 percent in 2012 to 46 percent in 2017. Increasingly, banks are learning to adapt to digitisation and fintech firms are providing very efficient solutions to make the life of the banker and the customer easier.

In fact, banks are now taking various proactive steps to promote fintech revolution in the country. Recently, YES Bank tied up with Innovation Centre Denmark India (ICDK India), a partnership between Ministry of Foreign Affairs of Denmark and the Danish Ministry of Higher Education and Science, to bring fintech innovations and assist fintech companies in India and Denmark to expand into each other’s markets.

Greater transparency in transactions

The fintech sector, which is witnessing a metamorphosis in the present age of digitisation, when seen in combination with inherently linked sectors, i.e. banking and ecommerce, is setting up the pace for huge economic growth.

The biggest manifestations of the technological revolution in fintech, banking and ecommerce world is the transparency in transactions. It simply means that once the person has linked his account with any of the fintech platforms of his choice, he is all set to use it as per the need of the hour. A bank account that is linked to a fintech platform makes it highly convenient for the user to complete shopping from an ecommerce site that accepts payments through it. Hence, the distance between seller and purchaser has now vanished, paving the way for the world to become a village with closely interlinked set-ups.

Today, fintech platforms such as Paytm, CreditMantri and BHIM are facilitating consumers with easy-to-use e-payment services that can be utilised in various ways, both for commercial and non-commercial purposes.

The digital linkage between fintech platforms and bank accounts has made life easy for all those ecommerce players who were earlier facing constraints due to distance and time. Fintech firms are actually taking payments to the next level in terms of speed, convenience, efficiency and multi-channel accessibility. They are easily driving client behaviour and fuelling expectations for better, faster and more innovative solutions across the payments spectrum and making existing customer relationships with banks a lot better than ever before.

Further, as one can easily transfer money from his account (online) to a brick-and-mortar bank account or vice-versa, it has made it easy for online business doers to obtain payments in return for goods and/or services, thus, giving them a valid reason as well as a platform for business expansion. This makes it clear that the conflux of widely growing ecommerce, transforming banking and fintech sectors, is something that holds huge promise for end-users not just in a developed world but in developing countries like India as well.

The digital confluence of fintechs, ecommerce and banks has also made a considerable impact on small and medium-scale enterprises (SMEs). The digital lending firms have made it possible to provide hassle-free loans to SMEs.

For both rural and urban users

It can be concluded that fintech sector, which is equipped with digital technology, will be more popular in the coming times.

Be it users from rural or urban regions, all will make use of the fintech sector to make their transactions safe and fast. Further, the online payment platforms in fintech sector capable of being linked to ecommerce sites, will be designed in a way to ensure that it is just the same for all users from business or the non-business world.

Thus, the digital technology with its benefits such as greater convenience, smart usage by users in much lesser time right at the doorsteps of buyers, may disappoint only those who are either not in a genuine position to avail this facility or those who are not willing to adapt to the changes in the finance sector. For the rest, digital confluence of fintechs, ecommerce and banks will bring in a host of benefits.

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)

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