India has been one of the fastest countries in the world to adapt to the fintech revolution. In fact, as per the Fintech Market in India 2021 Report, in 2020, India accounted for the highest fintech adoption rate (87%) and the Indian fintech market currently stands at $31 billion and is expected to reach $84 billion by 2025. One of the biggest reasons for its rapid proliferation is that Indian consumers can see the value addition that fintech companies have brought into their lives. Thus, below are a few of the ways in which fintech has helped India and its people to embark on the path to financial wellness.
Improved Credit Access
For the longest time, a large portion of India’s population didn’t have access to formal credit because they were either informal sector workers or the nature of their work was seasonal. However, with the advent of AI and Machine Learning, a large number of lending platforms have cropped up and they are using new alternate tech-enabled methods to gauge a borrower’s payback capacity to offer more options for credit. This is helping a whole cohort of people from low-income backgrounds to access credit at favourable rates and terms and conditions. Also, fintech today are ensuring that credit is no longer stigmatised and limited to just big-ticket purchases. A host of fintech start-ups are working to normalise credit for everyday purchases, and this could help regular Indians to fuel their dreams of economic mobility and improve their participation in financial systems.
Banking made easy
To put this point in perspective, we only have to imagine the pandemic happening twenty or even 10 years ago – it would have been a very different scenario. Digital banking has made our lives easier and hassle-free because it allows us to access banking services remotely. Also, most importantly, it has enabled a wider demographic, including younger people, to be included in banking and financial decision making – empowering them and their aspirations to be part of the India growth story.
In the future, fintech will be at the forefront of India’s strategy to become a global economic powerhouse. Its services are poised to expand into every sector of the economy, including more Indians from every walk of life, and eventually powering the country’s future.