By Mona Singh, Co-founder, India Accelerator
Fintech has come a lengthy way in automating and transforming the delivery of monetary services. The sector has refurnished other organization sectors with the adoption of digital solutions that aids organisations strategically realize a position in the marketplace. Considering the pace at which the digital revolution is taking location, the fintech marketplace is continuing to expand swiftly even in the wake of the COVID-19 pandemic. According to the estimates, the Indian fintech marketplace was valued at about Rs 1,92,016 crore in 2019 which is projected to attain Rs 6,20,741 crore by 2025 at a CAGR of 22.7 per cent.
With the COVID-19 pandemic taking a toll on the human and monetary wellness of the nation, the development of the sector is not clearly visible till the second wave of the pandemic is entirely more than. It shook the nation with its exacerbating influence and the marketplace is anticipated to witness serious challenges in terms of finances through the recovery. Given the many possibilities that the pandemic has presented, there will be new avenues of innovation for fintech corporations that will in the end lead to the general development of organizations.
The possibilities driving fintech development
With COVID-19 sweeping the world, there is a paradigm shift in consumer priorities and delivery of organization services. This has led to an enhanced have to have for digital transformation across all sectors. For instance, the lockdown announcements and social distancing have resulted in tremendous development of digital monetary services backed by e-commerce development. This will build more space for fintech corporations to innovate and produce transformative options for clients. On the other hand, organization corporations will capitalise on the chance of investing in mobile apps, e-commerce retailers and other solutions for an enhanced consumer practical experience.
In the previous handful of years, the government has launched many initiatives rolled out at the national level to centralise digital payment modes. One of the greatest game-changers such as Unified Payment Interface (UPI) and Reserve Bank of India to regulate the digital payment landscape of India have pushed the organization sectors towards advancement. Among all other types, UPI is recognised as the most hassle-free technique that corporations are investing in. As clients can make zero charge payments, lots of organization organisations have integrated UPI payment technique across channels that make it hassle-cost-free for clients to send or acquire payments. Furthermore, such initiatives aid the nation move towards the target of monetary inclusion and preserve pushing the organization sectors forward.
Besides, India’s increasing startup culture is bringing investments into the fintech sector. According to a report, India has witnessed the highest investment in the fintech segment with 33 offers valued at $647.5 million compared to China at $284.9 million through the quarter ending June 2020. Technologically sound workforce and integration of sophisticated technologies in monetary services have accelerated the efforts of fintech startup entrepreneurs. Moreover, the use of technologies for customer’s flexibility and advantage in employing digital monetary services have helped organizations make adjustments to their organization models, accompanied by an unprecedented consumer attain.
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Efforts to allow organization recovery and development
The most instant concern in today’s organization atmosphere is managing by way of the pandemic’s uncertainties. Fintech corporations present many positive aspects that aid organizations to pave for generating worth and position themselves with resiliency in the marketplace. Further, the integration of new-age technologies such as Artificial Intelligence, Machine Learning, Blockchain, IoT and Data Analytics in the monetary world gives agility to organizations and swiftly delivers transformative experiences.
In view of strict social distancing norms, the customers’ use of on the web and mobile channels is accelerating at a fast pace. This will enforce fintech corporations to redesign their organization models immediately after the pandemic’s second wave is more than. While leveraging the current assets and seizing new marketplace possibilities, fintech corporations will advantage the organization with the ideal context of transactions.
With organizations transitioning towards digitisation, fintech corporations will capitalise on the chance to build new alliances with non-tech and non-digitised services. Extensive B2B and B2C partnerships with organisations belonging to banking, logistics, e-commerce and NBFCs are projected to build new organization prospects.
With current uncertainties prevailing in the nation, every single organization sector has entered into a higher-threat zone. Similarly, the fintech sector is also not completely immune from the influence of the virus which will demand prioritisation of initiatives and many revolutionary strategies to immediately recover from the marketplace slowdown and return to profit generation phases.